Booking Holdings Q4 Revenue Rises 16%, Benchmark Lowers Target to $5,600
Booking Holdings reported Q4 FY2025 revenue of $6.35 billion, up 16% year over year, with gross bookings of $43 billion and room nights rising 9%. Morgan Stanley said AI travel agents funnel bookings back to the platform, preserving merchant-of-record status; Benchmark cut its price target from $6,400 to $5,600.
1. Q4 Financial Results
Booking Holdings delivered Q4 FY2025 revenue of $6.35 billion, a 16% increase year over year, with gross bookings of $43 billion and room nights up 9% to 285 million. Both revenue and gross bookings beat consensus estimates by 3.87% and $1 billion, respectively.
2. Morgan Stanley's AI Analysis
Morgan Stanley highlighted that early agentic AI travel tools are redirecting users back to Booking’s apps and websites to complete transactions. This dynamic preserves the company’s merchant-of-record status and ensures it retains transaction ownership and customer data.
3. Benchmark Price Target Revision
Benchmark reduced its price target from $6,400 to $5,600 while maintaining a Buy rating, citing valuation concerns. The analyst pointed to surprise marketing cost deleverage and below-consensus room-night guidance for Q1 FY2026 as key moderating factors.