Booking Holdings (BKNG) Q4 2025 earnings summary

Executive summary

• Delivered strong financial and operational performance in 2025, with resilient travel demand and robust execution across global markets; Q4 room nights grew 9% year-over-year, exceeding guidance.

• Advanced strategic priorities including Connected Trip, AI-powered capabilities, and growth in Asia and the U.S.

• Transformation program enabled significant cost savings, with $550 million in annual run-rate savings by year-end, supporting reinvestment.

• FY 2025 revenue reached $26.9 billion, up 13% year-over-year, with adjusted EBITDA of $9.9 billion, up 20%.

• 25-for-1 stock split approved, effective April 2, 2026.

Financial highlights

• Q4 2025 revenue: $6.35 billion, up 16% year-over-year; Q4 net income: $1.43 billion, up 34%; adjusted net income: $1.58 billion, up 13%.

• Q4 gross bookings and revenue both up 16%; adjusted EBITDA up 19% to $2.2 billion; adjusted EPS up 17% to $48.80.

• Full-year room nights surpassed 1.2 billion (+8% YoY); gross bookings and revenue up 12% and 13%, respectively.

• Free cash flow for 2025: $9.1 billion (+15% YoY); Q4 free cash flow: $1.4 billion, up 120%.

• Marketing as % of gross bookings: 4.4% for the year, 4.5% in Q4; total operating expenses increased 15% in Q4, slower than revenue growth.

Outlook and guidance

• FY 2026 guidance: gross bookings and revenue expected to grow in low double digits, about 100 bps above long-term ambition on a constant currency basis.

• Adjusted EBITDA growth expected to outpace revenue; adjusted EPS growth targeted in the mid-teens.

• Q1 2026 room night growth expected at 5–7%; gross bookings and revenue up 14–16%.

• Transformation program to deliver $500–$550 million in 2026 savings, enabling $700 million in reinvestments.