Booking.com Q4 Revenue Up 16% With $2.2B EBITDA and New $700M AI Investment
Booking.com posted Q4 gross bookings and revenue growth of 16% year-over-year, with adjusted EBITDA rising 19% to $2.2 billion and adjusted EPS up 17% to $48.80 on 285 million room nights (+9%). The company plans to reinvest $700 million in 2026 into AI, growth initiatives and expects modestly above-framework top-line growth.
1. Q4 Financial Results
Booking.com delivered Q4 gross bookings and revenue growth of 16% year-over-year, driven by 285 million room nights (+9%) and a 500 basis-point foreign exchange tailwind. Adjusted EBITDA rose 19% to $2.2 billion and adjusted EPS increased 17% to $48.80, with margin expansion of 80 basis points.
2. Full-Year 2025 Performance
Full-year 2025 gross bookings grew 12% and revenue increased 13%, while adjusted EBITDA expanded 20% to over $9.9 billion and margin reached 36.9%, up 193 basis points. The transformation program generated $550 million of annual run-rate savings, including $250 million in-year and $130 million in Q4.
3. 2026 Reinvestment and Guidance
Management will reinvest $700 million in 2026 into generative AI, Connected Trip, Asia/U.S. expansion and fintech/loyalty, targeting $400 million incremental revenue and $300 million net adjusted EBITDA benefit. The company guided 2026 top-line growth modestly above its long-term framework and Q1 revenue growth of 14–16%.
4. Shareholder Returns and Capital Actions
Booking.com returned $8.2 billion to shareholders in 2025, including $5.9 billion in buybacks, reduced share count by 22% since 2022, approved a 9.4% dividend increase to $10.50 and a 25-for-1 stock split effective April 2.