Key Takeaways
Booking Holdings (BKNG) lowered its full-year 2026 outlook, causing shares to fall 5.5 percent despite reporting first-quarter earnings that beat analyst expectations.
"The impact of the conflict was also felt outside the Middle East region, as we saw changes in broader travel patterns, particularly in transit corridors, such as the one between Europe and Asia," finance chief Ewout Steenbergen said on a post-earnings call.
The company now expects full-year revenue growth in the high single-digits, down from a low double-digit forecast. The lowered guidance reflects geopolitical uncertainty that is also pressuring peers like Hilton and Visa.
The online travel agency now projects adjusted earnings per share growth in the low to mid-teens for 2026, a reduction from its previous mid-teens forecast. The company's first-quarter room night growth of six percent was negatively impacted by approximately two percentage points due to the conflict.
Despite the headwinds, CEO Glenn Fogel said the 15 percent growth in first-quarter gross bookings to $53.8 billion and 16 percent growth in revenue "highlight the resilience of our business."
The guidance cut suggests that even resilient travel demand is susceptible to prolonged geopolitical instability. Investors will watch for commentary from rivals Airbnb and Expedia Group, who are scheduled to report their quarterly results on May 7.
This article is for informational purposes only and does not constitute investment advice.
