Booking Holdings Stock Gains Nearly 4% as Travel Rally Lifts Shares Ahead of Watched Earnings This Week

Shares of Booking Holdings rose nearly 4% in early trading Monday as travel stocks rallied on falling oil prices, ahead of the online travel giant's third-quarter earnings report this week.

Booking stock rose 3.72% to $153.64 as of about 9:49 a.m. Eastern time.

The gains came as oil prices fell on hopes for talks between the United States and Iran, lifting airline, hotel and online travel stocks.

Earnings ahead

Booking, the parent of Booking.com, Priceline, Kayak and OpenTable, is scheduled to report third-quarter results this week.

Analysts expect earnings of about $4.49 per share, up about 13% from a year earlier, on revenue of about $9.55 billion, up about 6%.

Booking has guided for third-quarter revenue growth of 4% to 6%, or 5% to 7% excluding currency effects.

Pressures on profits

Analysts expect unfavorable currency movements and higher marketing costs to have weighed on results. In the second quarter, Booking's marketing expenses rose 11%, faster than its 9% growth in gross bookings.

The company has been investing in its "Connected Trip" strategy, which aims to let travelers book flights, hotels, car rentals and activities in one place. Connected Trip transactions grew in the low double digits in the second quarter, more than twice Booking.com's overall transaction growth.

A tough year for the stock

Despite Monday's gain, Booking shares have struggled this year, falling more than 30% as of last week.

The stock has been hurt by concerns about slowing room night growth, the impact of the Middle East conflict on travel, and competition from AI tools that could change how travelers book trips.

Stock split

Booking completed a 25-for-1 stock split in April, the first forward stock split in its history, bringing its share price down from more than $4,000. All share prices are now adjusted for the split.

Resilient demand

In the second quarter, room nights grew 5%, gross bookings rose 9% and revenue grew 8%.

Chief Executive Glenn Fogel said that despite geopolitical and economic uncertainty, "the underlying desire to travel remained resilient."

The company has also been returning cash to shareholders. Booking bought back $3.7 billion of stock in the second quarter and had $14.5 billion remaining in its buyback authorization. It pays a quarterly dividend of 42 cents per share.

Middle East impact

Booking said earlier this year that the Middle East conflict weighed on its results. Higher oil prices and travel disruptions have affected demand in some regions.

Signs that the United States and Iran could hold talks have lifted travel stocks, as investors bet on lower fuel costs and fewer disruptions.

What's next

Investors will look to Booking's results for signs of travel demand heading into the holiday season and 2027, as well as updates on its AI initiatives and marketing spending.

Rival Expedia also reports results this week, offering a broader view of the online travel market.