# Booking takes $900 million FTC revenue hit as Q3 bookings rise 10%

Booking Holdings' revenue fell 1% to $8.89 billion after an FTC charge, while gross bookings grew 10% to $54.5 billion. Q4 guidance is weaker.

By The Signal Edition Newsroom | Ecommerce and retail / Travel and services
Published: 2026-11-05T10:48:48Z
Updated: 2026-11-05T10:48:48Z
Canonical: https://thesignaledition.com/article/booking-q3-2026-ftc-900-million-revenue-hit-gross-bookings-bkg6m3
Image: https://thesignaledition.com/media/180e47288ab227543c138a3c7837e03b.jpg (Booking.com campus buildings in Amsterdam; credit: Mohamed Osama AlNagdy / Wikimedia Commons (CC BY-SA 4.0))

## Key points
- Booking Holdings reported third-quarter 2026 revenue of $8.89 billion on Nov. 3, 2026, down 1.3%, after deducting $900 million for a pending FTC matter.
- Gross bookings rose 9.6% to $54.46 billion and room nights rose 6.7% to 345 million in the quarter.
- Booking also accrued a $100 million loss for the FTC matter; no settlement has been agreed and the FTC may seek more.
- Fourth-quarter guidance calls for room night growth of 1% to 3% and gross bookings growth of 2% to 4%.

## What Booking Holdings reported

Booking Holdings Inc. (NASDAQ: BKNG) reported third-quarter 2026 revenue of $8.89 billion on Nov. 3, 2026, down 1.3% from $9.01 billion a year earlier, because it deducted $900 million from revenue for a pending Federal Trade Commission matter. Gross bookings rose 9.6% to $54.46 billion and room nights rose 6.7% to 345 million, according to the company's Form 10-Q. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

Excluding the FTC deduction, revenue would have been $9.79 billion, about 8.7% above the prior-year quarter (8,893 plus 900, compared with 9,008, in $ millions). Booking's own Adjusted Revenue measure, which also excludes the item, was $9.8 billion, up 9%. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

Net income was $2.72 billion, down 1% from $2.75 billion. Diluted earnings per share rose 7% to $3.61 and adjusted earnings per share rose 17% to $4.66, helped by a smaller share count: weighted diluted shares fell to 753 million from 814 million, a drop of about 7.5%. Reuters reported that analysts expected $4.50 per share, according to LSEG data, which puts the $4.66 result about 3.6% higher. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm) [3](https://srnnews.com/booking-holdings-takes-900-million-hit-to-quarterly-revenue-linked-to-ftc-action/)

Operating income was $3.42 billion, down 1.9% from $3.48 billion. Total operating expenses fell 1% to $5.48 billion, partly because the prior-year quarter included a $457 million impairment charge. Marketing expense rose about 10.6% to $2.59 billion, or 4.8% of gross bookings. [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

## Why Booking cut revenue by $900 million

Booking said in its 10-Q that FTC staff told its Priceline unit in July 2026 that they intended to recommend a complaint against Priceline and a business-to-business affiliate partner. The staff alleged unfair or deceptive practices involving disclosures, fees, customer support and billing. Booking recorded the $900 million revenue reduction and a separate $100 million loss accrual, which sits in general and administrative expenses. [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

No settlement has been agreed. The filing says Priceline is in discussions with the FTC and that a negotiated deal would likely include a payment to the FTC and restitution to some U.S. consumers, along with changes to business practices. It also says the FTC may seek penalties and restitution above the amounts Booking has booked, and that litigation remains possible. [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

Reuters reported that the FTC has examined Priceline's relationship with Guest Reservations, a third-party site that often charges higher prices and fees for hotel rooms. Reuters said in October that the case could carry more than $500 million in potential penalties. An FTC spokesperson declined to comment, Reuters reported. Skift put the combined accounting hit at about $1 billion. [3](https://srnnews.com/booking-holdings-takes-900-million-hit-to-quarterly-revenue-linked-to-ftc-action/) [4](https://skift.com/2026/11/03/booking-takes-1-billion-hit-over-possible-ftc-settlement-sees-mixed-travel-market/)

The FTC matter is one of several regulatory items in the filing. The European Commission opened an investigation in October 2026 into whether Booking.com's practices on platform disclosures and security breach the Digital Services Act. Booking has also carried a liability of $469 million for a 2024 fine from Spain's competition authority, which it is appealing and which a Spanish court has suspended pending the appeal. [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

## How travel demand looked in the quarter

Merchant gross bookings, where Booking collects payment from the traveler, rose 13.9% to $40.7 billion, while agency gross bookings fell 1.3% to $13.7 billion. Merchant bookings were about 74.8% of the total, up from about 72.0% a year earlier. Merchant revenue rose 14.1% to $7.0 billion and agency revenue fell 4.1% to $2.5 billion. [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

Flight tickets reserved rose 19.4% to 21 million, while rental car days slipped 0.7% to 23 million. The 10-Q says the conflict in the Middle East reduced long-haul international travel demand and held back room night growth. Chief Executive Glenn Fogel said resilient travel demand and disciplined execution drove double-digit gross bookings growth. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

Operating cash flow was $1.1 billion and free cash flow was $1.1 billion, each down about 21% to 22%, though Booking said both rose 2% over the first nine months of 2026. Cash and equivalents fell to $15.8 billion from $17.2 billion at the end of 2025. Booking repurchased $2.1 billion of stock in the quarter, with $12.4 billion left under its authorization. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

## What Booking guided for the fourth quarter

Booking said global travel demand moderated toward the end of the third quarter, with softer international travel and resilient domestic travel. It cited October disruptions to travel to and from the Middle East, higher airfares and localized unrest in some European cities, and said its outlook assumes the effects of the Middle East conflict last through year-end. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm)

For the fourth quarter, Booking guided to room night growth of 1% to 3%, gross bookings growth of 2% to 4% and Adjusted Revenue growth of 0% to 2%, with Adjusted EBITDA about flat. Foreign exchange is expected to reduce reported Adjusted Revenue growth by about 2 percentage points. For 2026 as a whole it expects high single-digit growth in gross bookings, Adjusted Revenue and Adjusted EBITDA. Chief Financial Officer Ewout Steenbergen described the travel environment as "mixed," Skift reported. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) [4](https://skift.com/2026/11/03/booking-takes-1-billion-hit-over-possible-ftc-settlement-sees-mixed-travel-market/)

Reuters reported that Booking shares were down 1.5% in extended trading on Nov. 3. [3](https://srnnews.com/booking-holdings-takes-900-million-hit-to-quarterly-revenue-linked-to-ftc-action/)

## What happens next

Booking declared a quarterly dividend of $0.42 per share, payable on Dec. 31, 2026 to holders of record on Dec. 11, 2026. A settlement with the FTC, a complaint filed in court, or a change to the amounts Booking has accrued would show up in a later filing; none has been announced. [1](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) [2](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm)

## Sources
1. [Booking Holdings (SEC Form 8-K, Exhibit 99.1): Booking Holdings Reports Third Quarter 2026 Financial Results](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000044/q3-26bkngearningsrelease.htm) (2026-11-03)
2. [Booking Holdings (SEC Form 10-Q): Quarterly report for the period ended Sept. 30, 2026](https://www.sec.gov/Archives/edgar/data/1075531/000107553126000045/bkng-20260930.htm) (2026-11-03)
3. [Reuters (via SRN News): Booking Holdings takes $900 million hit to quarterly revenue linked to FTC action](https://srnnews.com/booking-holdings-takes-900-million-hit-to-quarterly-revenue-linked-to-ftc-action/) (2026-11-03)
4. [Skift: Booking Takes $1 Billion Hit Over Possible FTC Settlement, Sees 'Mixed' Travel Market](https://skift.com/2026/11/03/booking-takes-1-billion-hit-over-possible-ftc-settlement-sees-mixed-travel-market/) (2026-11-03)