Booking Holdings Soars on Resilient Travel Demand Despite Regulatory Headwinds and Weak Forecast

Booking Holdings shares rose over 10% despite a reported revenue decline, driven by strong underlying travel demand and improved earnings. A $900 million FTC-related adjustment reduced reported revenue, but adjusted results beat expectations. Management warned of a sharp fourth-quarter slowdown due to geopolitical tensions and higher airfares, particularly affecting international bookings.

Booking Holdings (BKNG) reported third-quarter results on November 4, 2026, with gross bookings reaching $54.5 billion—up 10% year-over-year—and room nights increasing 7% to 345 million, accelerating from the prior quarter’s 5% growth. Despite a reported revenue decline of 1% to $8.89 billion, adjusted earnings rose 17% to $4.66 per share, surpassing analyst expectations of $4.49. A $900 million revenue reduction tied to an ongoing Federal Trade Commission (FTC) investigation into Priceline’s business practices accounted for the reported drop, though adjusted revenue grew 9% to $9.8 billion. The company also announced a $100 million loss accrual related to the FTC matter and reaffirmed full-year guidance for high-single-digit growth in gross bookings, adjusted revenue, and EBITDA, alongside low-to-mid-teens EPS growth. Management cited geopolitical tensions—particularly the Middle East conflict—and elevated airfares as key drivers of a projected fourth-quarter slowdown, forecasting only 1% to 3% room-night growth and flat adjusted EBITDA.

The underlying strength in domestic travel and diversified services—including a 19% rise in flight bookings and a nearly 20% increase in multi-service transactions via its Connected Trip platform—highlighted Booking’s resilience beyond traditional hotel reservations. The company continues to invest heavily in AI, with early results showing users of AI assistants at Priceline and Agoda converting into bookings at roughly double the rate of