BKNG · Q2 FY2026
Booking Holdings Inc. Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $7.35B | $6.80B (yr ago) | Beat |
| EPS | $2.53 | $1.10 (yr ago) | Beat |
| Free Cash Flow | $3.64B | $3.14B (yr ago) | Beat |
| Gross Margin | 37.6% | Not disclosed (yr ago) | Miss |
| Operating Margin | 34.0% | 33.1% (yr ago) | Beat |
What changed
Q2 FY2026 revenue increased 8.1% year over year to $7.35B, while free cash flow rose 15.9% to $3.64B. Operating margin expanded 0.9 percentage points to 34.0%, and EPS increased to $2.53 from $1.10, although share-basis inconsistencies in the supplied history reduce the usefulness of the EPS comparison. Gross margin was 37.6% based on the supplied revenue and gross-profit points, but a comparable prior-year figure was not disclosed.
Impact on the investment thesis
We establish fair value at $190 per share rather than revise a prior estimate because this is our first coverage. The quarter supports that value through stronger cash generation and modest operating-margin expansion, but the 9.0% upside to fair value is insufficient for an Undervalued verdict.