Booking Holdings Posts $900 Million FTC Revenue Cut

The Tip Desk · November 3, 2026 · 3 min read

Gross bookings reached $54.5 billion, up 10%, as adjusted EPS rose 17% to $4.66.

Booking Holdings Inc. (BKNG) recorded a $900 million reduction in revenue and a $100 million accrued loss tied to a Federal Trade Commission matter in the third quarter, items the company excluded from adjusted results.

GAAP revenue declined 1% to $8.9 billion, reversing 8% growth in the second quarter and 16% growth in the first. Adjusted revenue grew 9%, or about 10% in constant currency, to $9.8 billion.

Gross bookings rose 10%, or about 11% on a constant-currency basis, to $54.5 billion. Room nights increased 7% to 345 million. Chief Executive Officer Glenn Fogel said resilient travel demand and disciplined execution drove double-digit gross bookings growth, margin expansion, and 17% adjusted earnings per share growth, with GAAP earnings per share growth of 7%.

GAAP net income declined 1% to $2.7 billion. Adjusted net income grew 8% to $3.5 billion. GAAP earnings were $3.61 a share; adjusted earnings were $4.66 a share. Adjusted EBITDA grew 9% to $4.6 billion.

Net income margin was 30.6%. Adjusted net income margin was 35.8%. Adjusted EBITDA margin held at 47.0%. Total operating expenses decreased 1%. Adjusted fixed operating expense growth was limited to 6%, including a slight reduction in personnel costs. Marketing expense was 4.8% of gross bookings.

Merchant gross bookings grew 14% to $40.7 billion. Agency gross bookings declined 1% to $13.7 billion. Flight ticket units grew 19%. Rental car days declined 1%. Alternative accommodation room nights at Booking.com increased 7%. Constant-currency accommodation average daily rates increased about 3%. Over the trailing four quarters, the mix of room nights booked through the direct channel was a mid-fifties percentage, similar to last year.

Net cash provided by operating activities declined 21% to $1.1 billion. Free cash flow declined 22% to $1.1 billion. Both measures increased 2% on a year-to-date basis compared with 2025.

The company repurchased $2.1 billion of common stock in the quarter ended September 30, 2026, with $12.4 billion remaining authorization. The board declared a cash dividend of $0.42 a share, payable December 31, 2026.

Booking Holdings said global travel demand moderated somewhat toward the end of the third quarter, reflecting softer international travel trends, while domestic travel remained resilient. In October, the company said, disruptions to travel to and from the Middle East, elevated airfares, and localized unrest in certain European cities also affected demand. Guidance assumes both the direct and indirect impacts of the Middle East conflict on travel persist through the end of the year.

For the fourth quarter of 2026, the company guides to room nights growth of 1% to 3%, gross bookings growth of 2% to 4%, and adjusted revenue growth of 0% to 2%. Constant-currency gross bookings growth is guided at 4% to 6%, and constant-currency adjusted revenue growth at 2% to 4%. Adjusted EBITDA growth is expected to be about flat. Adjusted EPS growth is expected in the low to mid-teens. Adjusted revenue growth includes a negative impact of about 2% in the fourth quarter due to foreign currency exchange rates.