📊 BKNG Key Takeaways
Is Booking Holdings Inc. (BKNG) a Good Investment?
Booking Holdings demonstrates strong operational fundamentals with robust revenue growth of 13.4% YoY and exceptional profitability margins (46.2% gross, 32.8% operating, 20.1% net). The company generates substantial free cash flow of $9.1B with a 33.8% FCF margin, providing strategic flexibility despite negative stockholders' equity driven by leverage and capital allocation decisions. However, net income declined 8.1% YoY despite revenue growth, warranting monitoring of cost pressures and operational efficiency.
Booking Holdings shows high-quality fundamentals with strong double-digit revenue growth, exceptional operating efficiency, and very strong free cash flow generation. Financial health is supported by a large cash balance and strong interest coverage, though declining net income and negative equity add balance sheet and capital structure risk that temper an otherwise strong profile.
Why Buy Booking Holdings Inc. Stock? BKNG Key Strengths
- Industry-leading profitability margins (gross 46.2%, operating 32.8%) indicating pricing power and operational leverage
- Exceptional free cash flow generation of $9.1B with 33.8% FCF margin, supporting capital returns and debt service
- Strong revenue growth of 13.4% YoY demonstrating continued market demand and market share gains
- Fortress balance sheet liquidity with $17.2B cash enabling strategic investments despite leverage
- Exceptional interest coverage ratio of 40.3x indicating minimal debt servicing risk
- High profitability with 32.8% operating margin and 20.1% net margin
- Excellent cash generation with $9.09B in free cash flow and 33.8% FCF margin
- Strong liquidity and debt servicing capacity, supported by $17.20B in cash and 40.3x interest coverage
BKNG Stock Risks: Booking Holdings Inc. Investment Risks
- Net income declined 8.1% YoY despite 13.4% revenue growth, signaling margin compression or elevated costs requiring investigation
- Negative stockholders' equity of -$5.6B indicating aggressive financial leverage and reduced equity cushion for downturns
- Long-term debt of $18.7B representing material leverage; vulnerability to macroeconomic slowdown in travel sector
- Total liabilities of $34.8B exceeding total assets of $29.3B raises refinancing and covenant considerations
- 13 Form 4 insider filings in last 90 days warrant examination for insider sentiment and transaction patterns
- Net income and diluted EPS declined despite revenue growth, which may indicate rising costs or margin pressure
- Negative stockholders equity reduces balance sheet flexibility and makes some leverage metrics less meaningful
- Long-term debt remains substantial at $18.74B, increasing dependence on continued strong cash generation
Key Metrics to Watch
- Net income trajectory and operating leverage relative to revenue growth
- Gross margin trends as competitive pressures and cost inflation evolve
- Debt refinancing activities and changes in leverage ratios
- Free cash flow sustainability and capital allocation priorities
- Insider transaction patterns and ratios for management confidence signals
- Operating margin and net income conversion from revenue growth
- Free cash flow sustainability relative to debt levels and capital returns
Booking Holdings Inc. (BKNG) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The 33.8% free cash flow margin provides substantial flexibility for dividends, buybacks, and strategic investments.
BKNG Profit Margin, ROE & Profitability Analysis
BKNG vs Transportation Sector: How Booking Holdings Inc. Compares
How Booking Holdings Inc. compares to Transportation sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Booking Holdings Inc. Stock Overvalued? BKNG Valuation Analysis 2026
Based on fundamental analysis, Booking Holdings Inc. has mixed fundamental signals relative to the Transportation sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Booking Holdings Inc. Balance Sheet: BKNG Debt, Cash & Liquidity
BKNG Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Booking Holdings Inc.'s revenue has grown significantly by 79% over the 5-year period, indicating strong business expansion. The most recent EPS of $117.40 reflects profitable operations.
BKNG Revenue Growth, EPS Growth & YoY Performance
BKNG Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2025 | $8.0B | $2.5B | $74.34 |
| Q2 2025 | $5.9B | $895.0M | $27.43 |
| Q1 2025 | $4.4B | $333.0M | $10.07 |
| Q3 2024 | $7.3B | $2.5B | $69.80 |
| Q2 2024 | $5.5B | $1.3B | $34.89 |
| Q1 2024 | $3.8B | $266.0M | $7.00 |
| Q3 2023 | $6.1B | $1.7B | $41.98 |
| Q2 2023 | $4.3B | $157.0M | $3.84 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Booking Holdings Inc. Dividends, Buybacks & Capital Allocation
BKNG SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Booking Holdings Inc. (CIK: 0001075531)
📋 Recent SEC Filings
❓ Frequently Asked Questions about BKNG
What is the AI rating for BKNG?
Booking Holdings Inc. (BKNG) has a Combined AI Rating of BUY from Claude (BUY) and ChatGPT (BUY) with 77% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKNG's key strengths?
Claude: Industry-leading profitability margins (gross 46.2%, operating 32.8%) indicating pricing power and operational leverage. Exceptional free cash flow generation of $9.1B with 33.8% FCF margin, supporting capital returns and debt service. ChatGPT: High profitability with 32.8% operating margin and 20.1% net margin. Excellent cash generation with $9.09B in free cash flow and 33.8% FCF margin.
What are the risks of investing in BKNG?
Claude: Net income declined 8.1% YoY despite 13.4% revenue growth, signaling margin compression or elevated costs requiring investigation. Negative stockholders' equity of -$5.6B indicating aggressive financial leverage and reduced equity cushion for downturns. ChatGPT: Net income and diluted EPS declined despite revenue growth, which may indicate rising costs or margin pressure. Negative stockholders equity reduces balance sheet flexibility and makes some leverage metrics less meaningful.
What is BKNG's revenue and growth?
Booking Holdings Inc. reported revenue of $26.9B.
Does BKNG pay dividends?
Booking Holdings Inc. pays dividends, with $1,248.0M distributed to shareholders in the trailing twelve months.
Where can I find BKNG SEC filings?
Official SEC filings for Booking Holdings Inc. (CIK: 0001075531) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is BKNG's EPS?
Booking Holdings Inc. has a diluted EPS of $165.57.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is BKNG a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Booking Holdings Inc. has a BUY rating with 77% confidence. The AI analysis suggests favorable fundamentals based on SEC filings. This is not investment advice.
Is BKNG stock overvalued or undervalued?
Valuation metrics for BKNG: ROE of N/A (sector avg: 18%), net margin of 20.1% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
Should I buy BKNG stock in 2026?
Our dual AI analysis gives Booking Holdings Inc. a combined BUY rating for 2026. Revenue is data pending, with profitability above sector average. Always conduct your own research.
What is BKNG's free cash flow?
Booking Holdings Inc.'s operating cash flow is $9.4B, with capital expenditures of $322.0M. FCF margin is 33.8%.
How does BKNG compare to other Transportation stocks?
Vs Transportation sector averages: Net margin 20.1% (avg: 10%), ROE N/A (avg: 18%), current ratio 1.33 (avg: 1).