Booking Holdings Q4 Revenue Jumps 16% to $6.35B, Stock Drops 9%
Booking Holdings posted Q4 revenue of $6.35 billion, up 16% year-on-year, and adjusted EBITDA of $2.20 billion with 285 million room nights booked, beating revenue estimates by 3.6%. Shares fell 9% as City cut its price target to $6,250 from $6,500, signaling investor unease over slowing travel demand and AI marketing spend.
1. Q4 Financial Results
Booking Holdings delivered Q4 revenue of $6.35 billion, a 16% year-on-year gain that exceeded the $6.13 billion consensus by 3.6%. Adjusted EBITDA reached $2.20 billion with a 34.6% margin, room nights booked rose to 285 million (up 24 million), and adjusted EPS came in at $48.80, matching expectations.
2. Market Reaction and Analyst Revisions
Shares declined about 9% after the earnings release, driven by concerns over signs of cooling travel demand. City reduced its price target to $6,250 from $6,500, the street average target slid to roughly $5,900, and the consensus tally includes 33 buy ratings and 10 holds.
3. Strategic Investments and Outlook
Management emphasized higher performance marketing and generative AI spending to boost customer service efficiency, achieving a 10% cut in service cost per booking. The company plans to expand its Genius loyalty tiers and Connected Trip offerings in Asia and the U.S., funding these initiatives with $130 million in quarterly Transformation Program savings.