Booking Holdings Inc. (NASDAQ:BKNG) shares were trading lower in premarket activity Wednesday after the company issued second-quarter guidance below Wall Street expectations.

Earnings Snapshot

The company reported first-quarter adjusted earnings of $1.14 per share, beating analyst estimates of $1.07. Revenue totaled $5.532 billion, ahead of the consensus estimate of $5.516 billion.

Revenue increased 16% year over year, or about 10% on a constant-currency basis. Room nights grew 6%, with the Middle East conflict estimated to have reduced growth by approximately 2 percentage points.

Gross bookings rose 15% year over year, or about 8% in constant currency, with the conflict affecting bookings in line with room night trends.

Adjusted EBITDA increased 19% to $1.3 billion, while margin expanded to 23.3% from 22.9% a year earlier.

Chief Executive Glenn Fogel said underlying performance exceeded expectations across key metrics despite geopolitical disruptions, citing strength in U.S. operations and continued progress in strategic initiatives, including its Connected Trip vision and generative AI investments.

Shareholder Returns And Stock Split

The board declared a cash dividend of 42 cents per share, payable June 30, 2026, to shareholders of record as of June 5, 2026.

Booking Holdings repurchased $3.6 billion in stock during the quarter. As of March 31, 2026, $18.2 billion remained under its repurchase authorization.

The company also completed a 25-for-1 stock split on April 2, 2026.

Outlook

Booking Holdings expects the impact of the Middle East conflict to continue through June, followed by a gradual recovery in the second half of the year.

Assuming about four months of disruption and a subsequent rebound, the company lowered its midpoint guidance while maintaining the upper end of its gross bookings and adjusted EPS targets.

For the second quarter, Booking projects revenue between $7.07 billion and $7.206 billion, below the consensus estimate of $7.566 billion. The company expects revenue, gross bookings, and adjusted EBITDA to grow 4% to 6%.

For the full year, Booking forecasts high single-digit revenue growth, gross bookings growth in the high single digits to low double digits, and adjusted EPS growth in the low- to mid-teens.

The company reaffirmed its long-term constant-currency targets, including at least 8% growth in gross bookings and revenue, and 15% growth in adjusted EPS.

BKNG Price Action: Booking Holdings shares were down 4.40% at $165.75 during premarket trading on Wednesday. The stock is trading at a new 52-week low, according to Benzinga Pro data.

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