Booking Holdings (PCE1) Q2 2026 Earnings Report

The call presented multiple strong operational and financial highlights: outperformance versus guidance across key metrics, double-digit adjusted EPS growth, strong free cash flow and aggressive capital returns, steady progress on Connected Trip and AI-driven efficiency gains, and an increased transformation savings target. The primary headwinds were external and largely exogenous (Middle East conflict driving airline disruption and cancellations), some slower growth in flights and rental cars, modestly higher marketing spend, and early-stage top-line benefits from AI and new referral channels. Overall, the positives—including margin expansion, robust cash generation, increased cost-savings guidance, and sustained demand in domestic and regional travel—outweigh the challenges, which are mostly external and near-term.

For the third quarter Booking expects room nights to increase 3–5% year‑over‑year and for gross bookings, revenue and adjusted EBITDA each to grow 4–6% YoY, with guidance assuming euro/USD at $1.15 and that indirect impacts from the Middle East (elevated flight prices, reduced capacity and softer long‑haul demand) persist through Q3 — FX is expected to weigh on reported Q3 growth by about 1 percentage point for gross bookings and revenue. For the full year the company sees gross bookings, revenue and adjusted EBITDA up high single‑digits and adjusted EPS up low‑to‑mid‑teens (noting the Q3 drag is driven mainly by lower flight ticket growth while accommodation outlook is largely unchanged), and estimates FX will boost full‑year reported growth by ~1.5 percentage points for gross bookings and ~1.0 point for revenue.