$BKNG · Booking Holdings Inc.
Booking Holdings filed its 10-Q for the quarter ended September 30, 2026. GAAP total revenues were $8.893B, down 1.3% YoY, dragged by a $900M FTC matter charge recorded as a contra-revenue item. Excluding the FTC charge, organic revenue grew approximately 8.7%. GAAP diluted EPS was $3.61 vs. $3.38 in Q3 2025. Operating income was $3.418B (38.4% margin). The company repurchased $9.934B of common stock in the first nine months of 2026, more than double the prior-year pace, and paid $974M in dividends.
- Total revenues of $8.893B include a $900M FTC matter charge; excluding it, revenue grew ~8.7% YoY
- GAAP diluted EPS of $3.61 vs. $3.38 in Q3 2025, a 6.8% increase despite the FTC charge
- Operating income of $3.418B (38.4% margin) vs. $3.483B a year ago, down 1.9%
- Nine-month share repurchases hit $9.934B, more than double the $4.298B in the same period last year
- Nine-month net income surged to $5.750B from $3.976B, driven by a $1.8B swing in other income from FX gains on Euro debt
Extended-hours trading shows BKNG at $154.59, down 0.69% from the regular close and 2.00% below the filing-time price, suggesting mild negative reaction to the FTC charge and revenue miss on a GAAP basis.
A $900M regulatory charge at a $117B market-cap travel giant, combined with a buyback pace running at over 8% of market cap annually, makes this a pivotal capital-allocation and regulatory-risk story.
Booking's merchant revenue growth (+14.1% to $6.998B) and agency revenue decline (-4.1% to $2.463B) reflect the ongoing industry shift toward merchant-model transactions. The aggressive buyback pace contrasts with peers who are prioritizing balance-sheet conservatism amid macro uncertainty.
The $900M FTC matter charge (Note 13) represents a material regulatory liability. Marketing expenses rose to $2.588B from $2.340B (+10.6% YoY), outpacing organic revenue growth and pressuring margins. The $10.4B stockholders' deficit reflects aggressive capital returns that could constrain financial flexibility.