How does Booking Holdings (BKNG) make money?

Booking Holdings (BKNG) generates revenue primarily from Merchant Revenue, which accounted for 66.9% of total revenue in TTM through Q1 2026. The company reported $27.7B in revenue and converted 22.2% of it into net profit, equivalent to roughly $6.15B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Booking Holdings (BKNG)?

Booking Holdings (BKNG) reported a gross profit margin of 100% in TTM through Q1 2026, equivalent to $27.7B in gross profit on $27.7B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Booking Holdings (BKNG)?

Booking Holdings (BKNG) reported an operating profit margin of 34.3% in TTM through Q1 2026, equivalent to $9.49B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Booking Holdings (BKNG)?

Booking Holdings (BKNG) reported a net profit margin of 22.2% in TTM through Q1 2026, equivalent to $6.15B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Booking Holdings (BKNG) profitable?

Yes. Booking Holdings (BKNG) reported $6.15B in net income for TTM through Q1 2026, with a net profit margin of 22.2%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Booking Holdings (BKNG) spend on capital expenditures?

Booking Holdings (BKNG) spent $308M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 1.1% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Booking Holdings (BKNG) generate?

Booking Holdings (BKNG) generated $9.03B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 32.6%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Booking Holdings (BKNG)?

Booking Holdings (BKNG) had an effective tax rate of 21.5% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Booking Holdings (BKNG)?

Booking Holdings (BKNG) reports revenue across 3 reportable product segments, led by Merchant Revenue at 66.9% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Booking Holdings Makes Money: 2026 Visual Revenue Map

Booking Holdings (BKNG) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 28, 2026).

Booking Holdings discloses geographic revenue only in annual filings. to view the full breakdown.

Booking Holdings (BKNG) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Booking Holdings (BKNG), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Merchant Revenue	$18.5B	66.9%
Agency Revenue	$7.93B	28.6%
Ads & Other	$1.22B	4.4%
Total	$27.7B	100%

Merchant Revenue$18.5B
Agency Revenue$7.93B
Ads & Other$1.22B
Total$27.7B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Booking Holdings (BKNG) reports revenue across 3 reportable product segments; the largest segment was Merchant Revenue at 66.9%, followed by Agency Revenue (28.6%) and Ads & Other (4.4%).

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