Booking Holdings Inc (NASDAQ:BKNG) stock fell 7.68% (As on February 19, 11:32:26 AM UTC-4, Source: Google Finance) after the company reported fourth quarter earnings that exceeded analyst expectations amid resilient international travel demand. Demand for international travel is expected to grow, fueled by upcoming events such as the FIFA World Cup and an increase in higher-income travelers spending more on premium experiences, benefiting companies such as Booking. The online travel giant saw room nights grow 9% compared to the same period in 2024, while gross bookings increased 16% year-over-year to $43 billion, or approximately 11% on a constant currency basis. The company reported adjusted EBITDA of $2.2 billion for the quarter, up 19% YoY, with an adjusted EBITDA margin of 34.6% compared to 33.8% in the fourth quarter of 2024. Alternative accommodation room nights at Booking.com increased by approximately 9%. Value-conscious travelers in the United States have cut back amid a tougher economic backdrop, softening demand for budget and mid-scale hotel offerings, while higher-income travelers continue to spend on premium experiences.

BKNG in the fourth quarter of FY25 has reported the adjusted earnings per share of $48.80, beating the analysts’ estimates for the adjusted earnings per share by $0.61. The company had reported the adjusted revenue growth of 16 percent to $6.35 billion in the fourth quarter of FY25, beating the analysts’ estimates for revenue of $6.12 billion. Marketing expense as a percentage of gross bookings was 4.5% (4.2% in Q4 2024) due to strategic investments in the U.S. and higher brand marketing spend. Over the trailing four quarters, the mix of the total room nights booked through the direct channel was a mid-fifties percentage. Total operating expenses increased 15%, slower than the 16% growth in revenue.

Looking ahead, Booking Holdings provided first quarter 2026 guidance with room nights growth of 5-7% and revenue growth of 14-16%. For the full year 2026, the company expects low double-digit revenue growth and mid-teens adjusted EPS growth.

Additionally, the company’s board approved a 25-to-1 stock split of authorized common shares, effective April 2, 2026, and declared a quarterly cash dividend of $10.50 per share, representing a 9.4% increase from the previous quarter. The cash dividend will be payable to stockholders of record as of the close of business on March 6, 2026. The company repurchased $2.1 billion of stock in the quarter ended December 31, 2025 with a total remaining authorization of $21.8 billion as of December 31, 2025.