📊 BKNG Key Takeaways
Is Booking Holdings Inc. (BKNG) a Good Investment?
Booking Holdings demonstrates strong operational fundamentals with robust 13.4% revenue growth, exceptional 56.2% free cash flow margin, and healthy 23% operating margin. However, negative stockholders' equity of -8.7B and declining net income/EPS despite revenue growth signal capital structure stress and margin compression that warrant caution despite strong cash generation.
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.
Booking Holdings Inc. Key Strengths (BKNG)
- Strong revenue growth of 13.4% YoY demonstrates market demand and business expansion
- Exceptional free cash flow generation of 3.1B with 56.2% FCF margin shows underlying business quality
- High operating and net margins (23.0% and 19.6% respectively) indicate pricing power and operational efficiency
- Strong interest coverage ratio of 5.8x demonstrates adequate debt servicing capacity
- Substantial cash position of 16.0B provides liquidity buffer and financial flexibility
- 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
- Negative stockholders' equity of -8.7B indicates balance sheet stress from excessive leverage, likely from aggressive buybacks or debt-financed acquisitions
- Net income declined 8.1% YoY and diluted EPS fell 4.1% YoY despite revenue growth, signaling margin compression or cost inflation concerns
- Tight current ratio of 1.06x suggests limited short-term liquidity cushion and operational inflexibility
- Total liabilities exceed total assets by 8.7B, creating financial fragility and limiting strategic options
- Long-term debt of 15.4B represents significant fixed obligations that constrain financial flexibility
- 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 and EPS trends - critical to understand if margin compression is stabilizing or continuing
- Operating cash flow sustainability and free cash flow conversion - verify 56.2% FCF margin holds under stress
- Debt reduction progress - trajectory of long-term debt paydown is essential given negative equity
- Current ratio and working capital trends - monitor if liquidity position is tightening further
- Gross profit and margin dynamics - clarify reported gross profit anomaly and underlying profitability drivers
- 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 56.2% 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 |
|---|---|---|---|
| Q1 2026 | $4.8B | $333.0M | $0.40 |
| 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 |
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 Grade of A from Claude (B) and ChatGPT (A) with 76% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are BKNG's key strengths?
Claude: Strong revenue growth of 13.4% YoY demonstrates market demand and business expansion. Exceptional free cash flow generation of 3.1B with 56.2% FCF margin shows underlying business quality. 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: Negative stockholders' equity of -8.7B indicates balance sheet stress from excessive leverage, likely from aggressive buybacks or debt-financed acquisitions. Net income declined 8.1% YoY and diluted EPS fell 4.1% YoY despite revenue growth, signaling margin compression or cost inflation concerns. 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 $5.5B.
Does BKNG pay dividends?
Booking Holdings Inc. pays dividends, with $343.0M 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 $1.36.
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 grade reflects both perspectives for balanced insights.
What is BKNG's fundamental grade?
Based on our AI fundamental analysis in June 2026, Booking Holdings Inc. has a A grade with 76% 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 19.6% (sector avg: 10%). Compare these metrics with sector averages to assess valuation.
What is BKNG's AI grade for 2026?
Our dual AI analysis gives Booking Holdings Inc. a combined A grade 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 $3.2B, with capital expenditures of $107.0M. FCF margin is 56.2%.
How does BKNG compare to other Transportation stocks?
Vs Transportation sector averages: Net margin 19.6% (avg: 10%), ROE N/A (avg: 18%), current ratio 1.06 (avg: 1).