Booking Holdings Lowers Revenue Forecast Amid Economic Uncertainty

Booking Holdings has revised its annual revenue outlook downward due to economic uncertainties. Q1 revenue reached $4.76 bln, surpassing expectations, with adjusted EPS at $24.81. The company now expects mid-to-high single digit growth in gross bookings and revenue at constant currency, down from at least 8%. Shares fell 3.2% in after-hours trading.

Booking Holdings Inc. (BKNG) has revised its annual revenue outlook downward due to economic uncertainties. The company reported first-quarter 2025 earnings, with Q1 revenue reaching $4.76 billion, surpassing analyst expectations. Adjusted EPS stood at $24.81, a significant 22% year-over-year increase. Despite these strong results, shares fell 3.35% in after-hours trading, closing at $4,745 [2].

The company now expects mid-to-high single-digit growth in gross bookings and revenue at constant currency, down from at least 8% previously projected. This revision reflects the current economic climate and potential headwinds in the travel sector. Booking Holdings maintains a strong financial position, with a market capitalization of $160.3 billion and an impressive gross profit margin of 85.87% [2].

During the earnings call, Booking Holdings’ CEO Glenn Vogel highlighted the company's AI strategy and geographic diversification as key drivers for future growth. The company plans to continue investing in AI technologies and expanding its alternative accommodations offerings. However, geopolitical and macroeconomic uncertainties pose risks to consumer demand and financial performance [2].

Investors should closely monitor Booking Holdings' progress in the coming quarters, as the company navigates the challenges of economic uncertainties and intense competition in the travel sector. The company's strong financial health and strategic initiatives position it well to sustain growth in the long term.

References:
[1] https://finance.yahoo.com/news/exploring-analyst-estimates-booking-holdings-131518847.html
[2] https://www.investing.com/news/transcripts/earnings-call-transcript-booking-holdings-q1-2025-beats-eps-expectations-93CH-4011522