Booking (NASDAQ:BKNG) Announces Quarterly Earnings Results, Beats Estimates By $0.17 EPS

Booking (NASDAQ:BKNG) issued its earnings results on Tuesday. The business services provider reported $4.66 EPS for the quarter, topping the consensus estimate of $4.49 by $0.17, FiscalAI reports. Booking had a negative return on equity of 102.96% and a net margin of 25.53%. The firm had revenue of $9.79 billion during the quarter, compared to analysts’ expectations of $9.55 billion. During the same period last year, the business earned $99.50 earnings per share. Booking’s quarterly revenue was down 1.2% compared to the same quarter last year.

Here are the key takeaways from Booking’s conference call:

• Third-quarter results exceeded guidance across room nights, gross bookings, adjusted revenue, and adjusted EBITDA. Room nights grew 7%, gross bookings rose 10% year over year, adjusted EBITDA increased 9% to approximately $4.6 billion, and adjusted EPS climbed 17% to $4.66.
• Booking Holdings reported encouraging early results from its AI initiatives, including higher engagement, conversion, booking value, and incremental demand. Priceline and Agoda AI users converted at roughly twice the rate of non-users, while Agoda users generated approximately 20% higher average booking values; AI also helped reduce customer-service and engineering costs.
• Growth broadened beyond accommodations, with flight tickets up 19%, attraction tickets up 24%, and Connected Trip transactions rising nearly 20%. Alternative-accommodation listings grew 9%, while direct, mobile-app, and higher-tier Genius engagement continued to deepen customer relationships.
• Management expects a meaningful near-term slowdown in the fourth quarter amid softer international demand, Middle East-related travel disruptions, elevated airfares, and difficult comparisons. Q4 room nights are projected to grow only 1% to 3%, adjusted revenue 0% to 2%, and adjusted EBITDA is expected to be roughly flat year over year as the company increases strategic investments in AI, technology, flights, attractions, and dining.

Booking Price Performance

Booking stock opened at $155.67 on Wednesday. The stock has a fifty day moving average price of $168.99 and a two-hundred day moving average price of $176.70. Booking has a 52-week low of $146.28 and a 52-week high of $220.81. The firm has a market capitalization of $116.97 billion, a P/E ratio of 17.23, a P/E/G ratio of 0.96 and a beta of 1.17.

Wall Street Analyst Weigh In

A number of equities analysts have recently issued reports on the stock. Melius Research set a $225.00 price objective on shares of Booking in a research note on Tuesday, October 20th. Rosenblatt Securities started coverage on shares of Booking in a research report on Tuesday, September 1st. They set a “buy” rating and a $245.00 target price on the stock. BMO Capital Markets reissued an “outperform” rating and issued a $245.00 target price on shares of Booking in a research note on Wednesday. Susquehanna reissued a “positive” rating and issued a $240.00 price target on shares of Booking in a research report on Thursday, August 6th. Finally, Bank of America reissued a “buy” rating on shares of Booking in a research report on Monday, October 26th. Three analysts have rated the stock with a Strong Buy rating, twenty-five have issued a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, Booking currently has a consensus rating of “Moderate Buy” and an average target price of $230.53.

Insider Buying and Selling

In other news, insider Paulo Pisano sold 1,500 shares of the company’s stock in a transaction dated Thursday, October 15th. The shares were sold at an average price of $163.06, for a total value of $244,590.00. Following the sale, the insider owned 70,400 shares of the company’s stock, valued at approximately $11,479,424. This represents a 2.09% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, VP Peter Millones, Jr. sold 50,050 shares of the business’s stock in a transaction dated Monday, August 17th. The shares were sold at an average price of $207.59, for a total transaction of $10,389,879.50. Following the completion of the transaction, the vice president owned 375,025 shares in the company, valued at approximately $77,851,439.75. This trade represents a 11.77% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 77,425 shares of company stock worth $16,004,164 in the last three months. Company insiders own 0.17% of the company’s stock.

More Booking News

Here are the key news stories impacting Booking this week:

• Positive Sentiment: Booking reported adjusted Q3 EPS of $4.66, above the roughly $4.49 analyst estimate. Room nights grew 7% and adjusted EBITDA rose 9%; adjusted revenue increased 9% excluding a one-time legal-related impact. Q3 earnings call highlights
• Positive Sentiment: Management highlighted AI as an opportunity to improve travel planning and the customer experience, which could support Booking’s long-term competitiveness. Q3 earnings call highlights
• Negative Sentiment: Reported revenue fell about 1% to $8.89 billion, below analyst expectations, while profit also declined. A roughly $900 million revenue impact tied to FTC action was a major drag on the reported results. Reuters report on FTC-related revenue impact
• Negative Sentiment: Booking warned of slower Q4 growth as international travel faces pressure from Middle East conflict, higher airfares and turmoil in Europe—raising concerns that demand momentum may cool. Travel-demand headwinds
• Negative Sentiment: JPMorgan cut its price target to $205 from $248, and Barclays lowered its target to $170 from $210, signaling reduced expectations for the shares. JPMorgan target change Barclays target change

About Booking

Booking Holdings Inc is a global online travel and restaurant-reservation company that connects consumers with travel providers through digital platforms and mobile applications. Its services include accommodations, flights, rental cars, cruises, vacation packages, restaurant reservations and other travel-related offerings.

The company operates a portfolio of well-known brands, including Booking.com, Priceline, Agoda, KAYAK, OpenTable, Rentalcars.com and Kayak-associated travel services.