Booking’s second quarter performance surpassed Wall Street’s expectations, with management attributing growth to robust demand across global markets and the continued expansion of its alternative accommodations and loyalty initiatives. CEO Glenn Fogel emphasized the strength in Europe and Asia, while noting that the U.S. showed improvement but continued to lag other regions. Management pointed to the growing adoption of the Genius loyalty program and a strong increase in room nights, particularly in Asia, as key contributors to the quarter’s results. Fogel highlighted, “Our top line trends saw solid improvement with room nights, gross bookings and revenue, all exceeding our prior expectations.”
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Booking (BKNG) Q2 CY2025 Highlights:
- Revenue: $6.80 billion vs analyst estimates of $6.56 billion (16% year-on-year growth, 3.7% beat)
- Adjusted EPS: $55.40 vs analyst estimates of $50.40 (9.9% beat)
- Adjusted EBITDA: $2.42 billion vs analyst estimates of $2.21 billion (35.6% margin, 9.8% beat)
- Operating Margin: 33.1%, up from 31.7% in the same quarter last year
- Room Nights Booked: 309 million, up 22 million year on year
- Market Capitalization: $173.9 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Booking’s Q2 Earnings Call
- Mark Stephen F. Mahaney (Evercore ISI): asked about regional performance in Asia and the impact of large language models. CEO Glenn Fogel highlighted the region’s high growth potential and ongoing technology partnerships, while CFO Ewout Steenbergen noted it’s too early to quantify LLM-driven channel diversification.
- Brian Thomas Nowak (Morgan Stanley): inquired about U.S. growth initiatives and technological hurdles for scaling AI assistants. Steenbergen described incremental investments to gain share in the U.S., and Fogel emphasized ongoing development of natural language tools for personalization.
- Douglas Till Anmuth (JPMorgan): questioned headwinds for Q3 and trends in alternative accommodations. Steenbergen cited tougher year-ago comparisons and steady performance, while reiterating alternative accommodations outpace hotel growth and are reaching maturity.
- Eric James Sheridan (Goldman Sachs): sought clarity on scaling the Connected Trip and supply investments. Fogel outlined a broad approach to deepen inventory and integration, while Steenbergen emphasized payments and economics as strategic pillars.
- Kevin Campbell Kopelman (TD Cowen): asked about U.S. consumer trends and macro sensitivities. Steenbergen noted stronger spending at the high end but caution among budget travelers, with Europe and Asia showing resilience and growth, respectively.
Catalysts in Upcoming Quarters
Looking forward, the StockStory team will be monitoring (1) the pace of adoption and scaling of AI-powered features across Booking’s brands, (2) sustained growth in alternative accommodations and cross-vertical Connected Trip transactions, and (3) continued momentum in Asian markets as a driver of global diversification. Progress in automation and customer loyalty initiatives will also be important markers of future performance.
Booking currently trades at $5,375, down from $5,561 just before the earnings. Is there an opportunity in the stock?The answer lies in our full research report (it’s free).
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