US$54.5 billion gross bookings and 17% adjusted EPS growth in Q3

Strong bookings growth meets a significant FTC charge

Booking Holdings Inc. (NASDAQ:BKNG) grew gross bookings 10% to US$54.5 billion in the third quarter, with room nights up 7% to 345 million. But the headline earnings picture was complicated by a US$900 million reduction in revenue and a US$100 million accrued loss related to a Federal Trade Commission matter.

Those items left GAAP revenue down 1% year on year at US$8.9 billion and net income down 1% at US$2.7 billion. Booking’s adjusted figures, which exclude the FTC-related items among other adjustments, were stronger: adjusted revenue rose 9% to US$9.8 billion, adjusted net income increased 8% to US$3.5 billion and adjusted EBITDA climbed 9% to US$4.6 billion. Adjusted EPS rose 17% to US$4.66, compared with a 7% increase in GAAP EPS to US$3.61.

Travel demand moderates into the final quarter

The company’s guidance is less buoyant than its third-quarter operating numbers. Booking expects fourth-quarter room-night growth of 1% to 3%, gross-bookings growth of 2% to 4% and adjusted revenue growth of 0% to 2%. Adjusted EBITDA is expected to be about flat, while adjusted EPS growth is forecast in the low to mid-teens.

Booking said global travel demand moderated towards the end of the quarter as international trends softened, although domestic travel remained resilient. Its assumptions for the fourth quarter include continuing direct and indirect effects from the Middle East conflict, including travel disruption, elevated airfares and localised unrest in some European cities. The company’s full-year guidance remains stronger, calling for high-single-digit growth in room nights, gross bookings, adjusted revenue and adjusted EBITDA, with adjusted EPS growth in the low to mid-teens.

Cash returns continue despite weaker quarterly cash flow

Booking returned US$2.1 billion to shareholders through buybacks during the quarter and had US$12.4 billion remaining under its repurchase authorisation at September 30. The board also declared a quarterly dividend of US$0.42 per share.

Quarterly operating cash flow fell 21% to US$1.1 billion and free cash flow declined 22% to US$1.1 billion. Over the first nine months, however, both measures increased 2% from the same period a year earlier, to US$8.1 billion and US$7.8 billion respectively. The tension is clear: Booking is still generating substantial cash, but its near-term reported results now carry both legal-accounting uncertainty and a more cautious travel-demand outlook.

AI investment adds another execution test

Chief executive Glenn Fogel said Booking is integrating artificial intelligence across its brands, developing AI-native experiences and working with external AI platforms. The filing does not quantify the financial contribution from those initiatives, leaving the immediate investment case anchored more firmly to booking volumes, margins, the FTC matter and the company’s ability to navigate softer international travel.