Booking Holdings Revenue Growth Slows as Room Night Gains Ease
The travel services company reported a net income margin of 26.5% for the second quarter.
Booking Holdings (BKNG), the online travel agency, reported a deceleration in its primary growth metrics for the second quarter ended June 30, 2026. The results indicated a cooling in demand and revenue momentum compared to the previous two quarters.
Revenue grew 8% year-over-year in the second quarter. This growth rate represents a decline from the 16% increases recorded in both the first quarter of 2026 and the fourth quarter of 2025.
Gross bookings followed a similar trajectory, rising 9% year-over-year. This was a deceleration from the 15% growth seen in the first quarter and the 16% growth reported in the prior year's fourth quarter. Room nights grew 5% year-over-year, down from 6% in the first quarter and 9% in the fourth quarter of 2025.
Performance within the Booking.com segment showed a slowdown in alternative accommodations, where room nights grew 4% year-over-year. This growth was lower than the 5.5% increase in the first quarter and the 9% increase in the fourth quarter of 2025. Constant currency average daily rates increased approximately 2%, an acceleration from the 1% increases reported in the two preceding quarters.
Profitability margins improved despite the slower top-line growth. Net income margin increased to 26.5% from 13.2% in the second quarter of 2025. Adjusted EBITDA margin expanded to 36.0% from 35.6% in the same period last year, though it remained below the 36.9% full-year margin for 2025.
Operating costs showed mixed trends. Adjusted fixed operating expenses increased 6%, a deceleration from the 14% increase reported in the first quarter. However, marketing expenses as a percentage of gross bookings rose to 4.7%, up from 4.6% in the second quarter of 2025 and 3.8% in the first quarter of 2026.
The company increased its expected annual run-rate savings from its Transformation Program to approximately $650 million. This target is higher than the $550 million mentioned in the fourth quarter of 2025 and the $500 million to $550 million range guided in the third quarter of 2025.