Earnings Beat: Booking Holdings Inc. Just Beat Analyst Forecasts, And Analysts Have Been Updating Their Models

Booking Holdings Inc. (NASDAQ:BKNG) just released its quarterly report and things are looking bullish. The company beat expectations with revenues of US$7.4b arriving 2.3% ahead of forecasts. Statutory earnings per share (EPS) were US$2.53, 6.6% ahead of estimates. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. So we collected the latest post-earnings statutory consensus estimates to see what could be in store for next year.

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Taking into account the latest results, the most recent consensus for Booking Holdings from 36 analysts is for revenues of US$29.3b in 2026. If met, it would imply a reasonable 3.6% increase on its revenue over the past 12 months. Statutory earnings per share are predicted to increase 9.5% to US$10.51. Yet prior to the latest earnings, the analysts had been anticipated revenues of US$29.3b and earnings per share (EPS) of US$10.43 in 2026. So it's pretty clear that, although the analysts have updated their estimates, there's been no major change in expectations for the business following the latest results.

See our latest analysis for Booking Holdings

With the analysts reconfirming their revenue and earnings forecasts, it's surprising to see that the price target rose 5.5% to US$236. It looks as though they previously had some doubts over whether the business would live up to their expectations. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. There are some variant perceptions on Booking Holdings, with the most bullish analyst valuing it at US$301 and the most bearish at US$188 per share. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

One way to get more context on these forecasts is to look at how they compare to both past performance, and how other companies in the same industry are performing. It's pretty clear that there is an expectation that Booking Holdings' revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 7.4% growth on an annualised basis. This is compared to a historical growth rate of 20% over the past five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 9.4% per year. Factoring in the forecast slowdown in growth, it seems obvious that Booking Holdings is also expected to grow slower than other industry participants.

The Bottom Line

The most important thing to take away is that there's been no major change in sentiment, with the analysts reconfirming that the business is performing in line with their previous earnings per share estimates. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that Booking Holdings' revenue is expected to perform worse than the wider industry. There was also a nice increase in the price target, with the analysts clearly feeling that the intrinsic value of the business is improving.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. At Simply Wall St, we have a full range of analyst estimates for Booking Holdings going out to 2028, and you can see them free on our platform here..

However, before you get too enthused, we've discovered 1 warning sign for Booking Holdings that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.