Booking Holdings Posts 15% Gross Bookings Growth in Q1, Flags Middle East Headwinds

Booking Holdings processed 338 million room nights in the first quarter of 2026, up 6% year on year, even as the ongoing Middle East conflict knocked an estimated two percentage points off growth. Gross bookings reached $53.8 billion, up 15% from a year ago, with revenue rising 16% to $5.5 billion.

The headline net income figure of $1.1 billion represents a 225% jump, but the comparison flatters the result — Q1 2025 was dragged down by large non-cash charges on Euro-denominated debt and convertible note accounting. The cleaner measure, adjusted EBITDA, grew 19% to $1.3 billion, with margins ticking up slightly to 23.3% from 22.9% a year earlier.

Key metrics

Alternative accommodations on Booking.com grew room nights by 5.5%, slightly softer than the overall platform rate. Airline ticket bookings held their momentum, rising 28.5% to 21 million tickets. The shift toward direct channel bookings has stabilised: over the trailing four quarters, direct channel room nights ran in the mid-fifties percentage range — roughly flat compared to the prior year, which suggests the Genius loyalty push and app investment is holding share but not dramatically accelerating.

CEO Glenn Fogel struck a measured tone. "Despite headwinds associated with the Middle East conflict, we are pleased to report a solid start to 2026," he said, adding that the platform's Connected Trip strategy and generative AI investment remain the central pillars of long-term growth.

Capital returns and stock split

Booking Holdings completed a 25-for-1 stock split on April 2. During Q1 the company bought back $3.6 billion of shares, leaving $18.2 billion of repurchase authorisation outstanding. The board also declared a quarterly dividend of $0.42 per share, payable June 30 to holders of record as of June 5.

Guidance

For Q2, management guides room night growth of 2–4% and revenue growth of 4–6%, assuming Middle East disruptions persist through the end of June. Full-year gross bookings are expected to grow in the high single digits to low double digits, with adjusted EBITDA growing slightly faster than revenue. That guidance assumes a second-half recovery once the conflict eases — a significant assumption given the current trajectory.

Management was explicit that a sustained disruption could push jet fuel costs higher, shrink airline capacity, and weigh on travel sentiment broadly. Those broader macro effects are not in the current guidance.

What it means for property operators

Booking.com remains the dominant accommodation platform in most markets, and these numbers suggest stable if moderating demand. The continued emphasis on direct bookings through Genius and the app means Booking is tightening its grip on repeat travelers — reducing the marginal benefit of price comparison for properties that aren't offering competitive rates on-platform. If you haven't reviewed rate parity and commission structures recently, the continued direct channel investment is a reason to do so.