Booking Holdings Inc. (NASDAQ:BKNG) is included among the 13 Most Promising Long-Term Stocks to Buy According to Hedge Funds. Booking’s (BKNG) Long-Term Growth Outlook Drives Upgrade from Morgan Stanley Maxx-Studio/Shutterstock.com On February 24, Morgan Stanley analyst Brian Nowak upgraded Booking Holdings Inc. (NASDAQ:BKNG) to Overweight from Equal Weight. He set a price target of $5,500, down from $6,150. In his research note, Nowak said that even as agentic tools evolve, Booking is likely to remain ...

Core Insights - Booking Holdings Inc. is recognized as one of the best consumer discretionary stocks to buy currently, despite a recent target price reduction by JPMorgan from $6,250 to $5,600, which represents a 10.4% decrease while maintaining an Overweight rating [1] Financial Performance - Booking Holdings reported strong Q4 earnings with GAAP net income increasing by 34% year-over-year to $1.4 billion and GAAP earnings per share rising by 38% year-over-year to $44.22 [2] - Non-GAAP metrics also showed significant growth, with adjusted EBITDA up 19% year-over-year to $2.2 billion and adjusted earnings per share increasing by 17% year-over-year to $48.80 [2] Revenue and Profitability - The company's revenue grew by 16% year-over-year to $6.3 billion, driven by a 9% increase in room nights booked to 285 million and a 6% rise in average daily rates to $151 per night [3] - Net income margins improved by 300 basis points year-over-year to 22.5%, aided by approximately $550 million in annualized run-rate savings from the company's "Transformation Program" [3]

Booking Holdings to Make Fourth Quarter and Full Year 2025 Earnings Press Release Available on Company's Investor Relations Website on February 18 [Accessibility Statement] Skip NavigationNORWALK, Conn., Feb. 17, 2026 /PRNewswire/ -- Fourth quarter and full year 2025 financial results for Booking Holdings (NASDAQ: BKNG) will be made available at approximately 4:00 p.m. ET on February 18 through a press release posted to the company's Investor Relations website: [http://ir.bookingholdings.com].Booking Holdin ...

Group 1 - Booking Holdings plans to hold a conference call to discuss its fourth quarter and full year 2025 financial results on February 18, 2026, at 4:30 p.m. ET [1] - The financial results will be posted on the company's Investor Relations website at approximately 4:00 p.m. ET on the same day [2] - Booking Holdings is the leading provider of online travel and related services, operating in over 220 countries and territories through brands such as Booking.com, Priceline, Agoda, KAYAK, and OpenTable [2]

Core Insights - Booking Holdings Inc. (BKNG) has a market capitalization of $164.9 billion and operates major brands like Booking.com, Priceline, Agoda, KAYAK, and OpenTable, providing services in accommodation, transportation, activities, and dining reservations [1] Financial Performance - The company is expected to announce its fiscal Q4 2025 results soon, with analysts predicting an adjusted EPS of $48.59, reflecting a 16.9% increase from $41.55 in the same quarter last year [2] - For fiscal 2025, analysts forecast an adjusted EPS of $226.86, which represents a growth of 21.3% from $187.10 in fiscal 2024 [3] - Booking Holdings reported a stronger-than-expected Q3 2025 adjusted EPS of $99.50, with revenue reaching $9.01 billion, surpassing Wall Street expectations due to steady travel demand and increased bundling of reservations [5] Stock Performance - Over the past 52 weeks, shares of Booking Holdings have increased by 5.2%, underperforming the S&P 500 Index's return of 16.9% and the State Street Consumer Discretionary Select Sector SPDR ETF's gain of 8.2% [4] - Analysts maintain a cautiously optimistic consensus on BKNG stock, with a "Moderate Buy" rating; among 37 analysts, 24 recommend "Strong Buy," 2 suggest "Moderate Buy," and 11 indicate "Hold" [6] - The average analyst price target for Booking Holdings is $6,179.14, indicating a potential upside of 20.8% from current levels [6]

Core Insights - Booking Holdings Inc. is the world's leading provider of online travel and related services, with a market cap of $158.1 billion and operations in over 220 countries and territories [1][2] Company Performance - Booking's stock has dropped 15.9% from its all-time high of $5,839.41 on July 8, and has declined 13.9% over the past three months, underperforming the Amplify Travel Tech ETF's 7.9% decline during the same period [3] - Year-to-date, BKNG stock has dipped 1.1% and has declined 5.8% over the past 52 weeks, compared to the ETF's 5.6% decline in 2025 and 7.6% over the past year [4] - Following the release of Q3 results on October 28, which showed room nights growth of 8% and gross bookings surge of 14%, net revenues increased 12.7% year-over-year to $9 billion, beating expectations by 3.1% [5] Competitive Landscape - Booking has significantly lagged behind its peer Expedia Group, Inc., which saw a 38.3% surge over the past year [6]

Group 1 - Booking Holdings' CFO Ewout Steenbergen will present at the Nasdaq 53rd Investor Conference in London on December 9, starting at 4:30 am ET / 9:30 am GMT [1] - A live audio cast of the presentation will be accessible to the public, with a replay available approximately 24 hours later for 12 months [1] - Booking Holdings is recognized as the world's leading provider of online travel and related services, operating in over 220 countries and territories through five main consumer-facing brands [2][3] Group 2 - The company aims to simplify global travel experiences for consumers and local partners [2] - Booking Holdings will release its third quarter 2025 financial results on October 28 at approximately 4:00 p.m. ET [4]

Core Insights - Booking Holdings Inc. is recognized as one of the best long-term stocks to buy according to D. E. Shaw, following its strong third-quarter performance [1] - Bernstein maintained a Market Perform rating and a price target of $5,433 for Booking Holdings, highlighting an 8% increase in room nights, which exceeded forecasts by 2.5% and consensus projections by 2% [1][2] - The company's adjusted EPS increased by 19%, and adjusted EBITDA rose by 15%, indicating solid operational performance [2] - Booking Holdings has raised its annual run-rate savings forecasts due to the success of its Transformation Program [2] - Despite facing challenging comparisons in Europe and a tough macroeconomic environment in the U.S., the company projects a 10% revenue growth and high-teens EBITDA growth for the year [3] - Bernstein acknowledged Booking's strong performance but cautioned that quarterly results may not fully address ongoing discussions regarding AI's potential impact on the company's commission structure and business model [3] Company Overview - Booking Holdings Inc. provides online travel and related solutions, including accommodation reservations, through various brands such as Booking.com, Priceline, Agoda, KAYAK, and OpenTable [4]

Financial Data and Key Metrics Changes - Booking Holdings reported a strong third quarter with gross bookings increasing by 14% year-over-year, reaching $50 billion, and revenue growing by 13% to $9 billion, both exceeding prior guidance [5][27][35] - Adjusted EBITDA for the quarter was approximately $4.2 billion, reflecting a 15% year-over-year increase, and adjusted earnings per share grew 19% year-over-year to $99.50 [5][29][35] - Room nights reached 323 million, an 8% increase year-over-year, surpassing expectations [5][19][35] Business Line Data and Key Metrics Changes - Connected trip transactions, which include multiple travel verticals, grew mid-20% year-over-year, now representing a low double-digit percentage of total transactions [9] - Flight ticket bookings increased by 32% year-over-year, while attractions bookings surged nearly 90% from a smaller base [25] - Alternative accommodations room night growth was about 10%, with a global mix of alternative accommodation room nights at 36%, up one percentage point from the previous year [24][17] Market Data and Key Metrics Changes - The U.S. market saw high single-digit growth in room nights, driven by stronger outbound travel and B2B business momentum [5][21] - Asia remains a key growth driver, with the region expected to grow in the high single digits over the next several years [18] - Europe and the rest of the world also delivered low double-digit growth, contributing to the overall robust performance [21] Company Strategy and Development Direction - The company is focused on advancing its connected trip vision, enhancing loyalty programs, and leveraging AI capabilities to create more value for travelers and partners [7][12][19] - Investments are being made to expand verticals such as flights and attractions, aiming to provide a seamless experience for users [8][24] - The Genius loyalty program is a core differentiator, with members accounting for over 30% of the active base and mid-50% of room nights booked [10][11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the value proposition through the connected trip and the Genius loyalty program, despite macroeconomic uncertainties [19][31] - The company anticipates continued stable levels of global leisure travel demand and is closely monitoring the travel environment for changes [6][31] - Guidance for the fourth quarter includes expected room night growth of 4% to 6% and gross bookings growth of 11% to 13% [32][35] Other Important Information - The company is experiencing a positive impact from foreign exchange rates, which are expected to benefit growth rates by approximately 400 to 500 basis points [6][34] - The transformation program is projected to deliver significant cost savings, with estimated in-year savings for 2025 exceeding $225 million [30] Q&A Session Summary Question: U.S. acceleration and B2B initiatives - Management noted that both B2B and B2C segments are performing well, with a focus on improving product offerings and brand awareness [38][41] Question: OpenAI integration and economic impact - Management acknowledged the early stages of AI integration and emphasized the importance of providing value beyond initial discovery [46][49] Question: AI risks and mitigation strategies - Management downplayed the risk of hotels bypassing platforms, citing the value provided through the Genius program and direct customer relationships [54][56] Question: Social media marketing and Asia performance - Management confirmed ongoing investments in social media marketing while highlighting strong growth in Asia, driven by localized strategies [61][63] Question: Changes in web entry points and product innovation - Management discussed the importance of brand awareness and the positive impact of new tools on conversion rates and customer satisfaction [70][74]

Financial Data and Key Metrics Changes - Booking Holdings reported a strong third quarter with gross bookings increasing by 14% year-over-year, reaching $50 billion, and revenue growing by 13% to $9 billion, both exceeding prior guidance [4][26]. - Adjusted EBITDA for the quarter was approximately $4.2 billion, up 15% year-over-year, and adjusted earnings per share grew 19% to $99.50 [29][30]. - Room nights reached 323 million, an 8% increase year-over-year, surpassing expectations [4][18]. Business Line Data and Key Metrics Changes - The connected trip transactions, which include multiple travel verticals, grew mid-20% year-over-year, now representing a low double-digit percentage of total transactions [8]. - Flight ticket bookings increased by 32% year-over-year, while attractions bookings surged nearly 90% from a smaller base [23][24]. - Alternative accommodations room night growth was about 10%, with a global mix of alternative accommodation room nights at 36%, up one percentage point from the previous year [23][16]. Market Data and Key Metrics Changes - The U.S. market saw high single-digit growth in room nights, driven by stronger outbound travel and B2B business momentum [4][19]. - Asia remains a key growth driver, with the region expected to grow in the high single digits over the next several years [17]. - Global average daily rates (ADRs) increased by about 1% year-over-year, indicating a positive trend in pricing [20]. Company Strategy and Development Direction - The company is focused on advancing its connected trip vision, enhancing loyalty programs, and leveraging AI capabilities to create more value for travelers and partners [5][11]. - Investments are being made to improve the customer experience across various travel verticals, including accommodations, flights, and attractions [6][10]. - The Genius loyalty program is a core differentiator, with members accounting for over 30% of the active base and mid-50% of room nights booked [9][10]. Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the strength of the value proposition through the connected trip and the Genius loyalty program, despite macroeconomic uncertainties [18][34]. - The company anticipates continued stable global leisure travel demand and expects fourth quarter room night growth to be between 4% and 6% [32][33]. - Full-year guidance has been increased, with expectations for gross bookings to rise by 11% to 12% and revenue by 12% [34]. Other Important Information - The company is experiencing a positive impact from foreign exchange rates, which are expected to benefit growth rates by approximately 400 to 500 basis points [5][26]. - The transformation program is projected to deliver significant cost savings, with estimated in-year savings for 2025 exceeding $225 million [30]. Q&A Session Summary Question: U.S. acceleration and B2B initiatives - Management noted that both B2B and B2C segments are performing well, with a focus on improving efficiency and product offerings [38][40]. Question: OpenAI app integration and economic impact - Management acknowledged the early stages of integration with OpenAI and emphasized the importance of providing value through execution and transaction fulfillment [44][46]. Question: Risk of hotel partners bypassing platforms - Management downplayed the risk, stating that customer trust and value provided through the platform will continue to attract users [50][52]. Question: Social media marketing effectiveness - Management confirmed ongoing investments in social media marketing while maintaining a focus on measuring ROI [56]. Question: Growth in Asia and market penetration - Management highlighted the strong performance in Asia, with localized strategies for Agoda and global optimization for Booking.com [59][60].