Booking Holdings Reports Strong Q4 Revenue Beat and Announces 25-for-1 Stock Split
Norwalk, Wednesday, 18 February 2026.
Booking Holdings defied market skepticism by delivering $6.35 billion in fourth-quarter revenue, significantly outpacing analyst estimates driven by a 16% surge in gross bookings. Signaling robust confidence in global travel demand, the company also unveiled a massive 25-for-1 stock split and raised its dividend, providing a positive outlook despite recent share price volatility.
Surpassing Expectations on Top and Bottom Lines
Booking Holdings delivered a decisive beat against Wall Street forecasts for the fourth quarter of 2025. The company reported revenue of $6.35 billion, surpassing the consensus estimate of $6.12 billion projected by analysts [7]. Adjusted earnings per share (EPS) came in at $48.80, outpacing estimates by $0.61 [7] and significantly exceeding the $47.58 expected by some market observers [1]. On a GAAP basis, the company recorded a profit of $44.22 per share [6]. This financial strength was underpinned by a 16% year-over-year increase in gross bookings, which climbed to $43.0 billion, or an 11% increase on a constant currency basis [1][7].
Operational Efficiency and Demand Growth
Underlying the headline numbers was a notable acceleration in travel demand. The company reported that room nights grew by 9% year-over-year to reach 285 million, a figure that comfortably exceeded the consensus estimate of 255 million [1]. This volume growth translated into improved profitability; adjusted EBITDA for the quarter rose 19% year-over-year to $2.2 billion [7]. Furthermore, the company demonstrated disciplined cost management, expanding its adjusted EBITDA margin to 34.6%, up from 33.8% in the same period the previous year [7]. CEO Glenn Fogel attributed these results to the strength of the platform and disciplined execution, noting the acceleration of room night growth across every quarter of 2025 [7].
Strategic Corporate Actions: Stock Split and Dividend Hike
In a move designed to make share ownership more accessible, the Board of Directors approved a 25-for-1 forward stock split of its common stock, which is scheduled to become effective on April 2, 2026 [1][7]. This decision comes as the stock traded at $4,140.15 as of the close on February 17, 2026 [3][8]. Additionally, the company signaled its commitment to returning value to shareholders by declaring a quarterly cash dividend of $10.50 per share, representing a 9.4% increase from the previous quarter [7]. These capital allocation strategies suggest management remains confident in the company’s long-term cash flow generation capabilities despite recent market volatility.
Future Outlook and Market Context
Looking ahead, Booking Holdings issued optimistic guidance for the first quarter of 2026, projecting revenue growth between 14% and 16% and room night growth of 5% to 7% [7]. For the full fiscal year of 2026, the company anticipates low double-digit revenue growth and mid-teens growth in adjusted EPS [7]. This positive outlook stands in contrast to recent sentiment; shares of Booking Holdings had fallen 20% since the beginning of the year leading up to this report [6]. However, following the announcement of these strong results and the upcoming stock split, the stock edged up 1% in after-hours trading on Wednesday [7].