Online travel agency Booking Holdings (NASDAQ: BKNG) met Wall Street’s revenue expectations in Q1 CY2026, with sales up 16.2% year on year to $5.53 billion. Its non-GAAP profit of $1.14 per share was 5.7% above analysts’ consensus estimates.
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Booking (BKNG) Q1 CY2026 Highlights:
- Revenue: $5.53 billion vs analyst estimates of $5.51 billion (16.2% year-on-year growth, in line)
- Adjusted EPS: $1.14 vs analyst estimates of $1.08 (5.7% beat)
- Adjusted EBITDA: $1.3 billion vs analyst estimates of $1.25 billion (23.5% margin, 4.3% beat)
- Operating Margin: 23%, in line with the same quarter last year
- Free Cash Flow Margin: 56%, up from 22.3% in the previous quarter
- Room Nights Booked: 338 million, up 19 million year on year
- Market Capitalization: $138.1 billion
Company Overview
Formerly known as The Priceline Group, Booking Holdings (NASDAQ: BKNG) is the world’s largest online travel agency.
Revenue Growth
A company’s long-term performance is an indicator of its overall quality. Any business can have short-term success, but a top-tier one grows for years. Over the last three years, Booking grew its sales at a solid 15.1% compounded annual growth rate. Its growth beat the average consumer internet company and shows its offerings resonate with customers, a helpful starting point for our analysis.
This quarter, Booking’s year-on-year revenue growth was 16.2%, and its $5.53 billion of revenue was in line with Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 9.5% over the next 12 months, a deceleration versus the last three years. This projection is underwhelming and indicates its products and services will see some demand headwinds. At least the company is tracking well in other measures of financial health.
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Room Nights Booked
Booking Growth
As an online travel company, Booking generates revenue growth by increasing both the number of stays (or experiences) booked and the commission charged on those bookings.
Over the last two years, Booking’s room nights booked, a key performance metric for the company, increased by 8.3% annually to 338 million in the latest quarter. This growth rate is decent for a consumer internet business and indicates people enjoy using its offerings. 
In Q1, Booking added 19 million room nights booked, leading to 6% year-on-year growth. The quarterly print was lower than its two-year result, suggesting its new initiatives aren’t accelerating booking growth just yet.
Revenue Per Booking
Average revenue per booking (ARPB) is a critical metric to track because it not only measures how much users book on its platform but also the commission that Booking can charge.
Booking’s ARPB growth has been mediocre over the last two years, averaging 3.8%. This isn’t great, but the increase in room nights booked is more relevant for assessing long-term business potential. We’ll monitor the situation closely; if Booking tries boosting ARPB by taking a more aggressive approach to monetization, it’s unclear whether bookings can continue growing at the current pace. 
This quarter, Booking’s ARPB clocked in at $16.37. It grew by 9.6% year on year, faster than its room nights booked.
Key Takeaways from Booking’s Q1 Results
We enjoyed seeing Booking beat analysts’ EBITDA expectations this quarter despite in line revenue. EPS also beat. The stock traded up 3% to $166.74 immediately after reporting.
Booking had an encouraging quarter, but one earnings result doesn’t necessarily make the stock a buy. Let’s see if this is a good investment. When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
