Booking Holdings Surges as Market Struggles: Q1 Performance Revealed

Booking Holdings (NASDAQ: BKNG) outperformed a sluggish market in 2025, with its stock rising 3% while the S&P 500 fell 5%. The company reported solid Q1 results: Revenue climbed 8% year-over-year to $4.76 billion, surpassing the $4.59 billion estimate. Adjusted EPS surged 22% to $24.81, well above the consensus of $17.45. Both gross bookings and room nights increased by 7%, and adjusted EBITDA rose 21% to $1.1 billion. This strong performance reflects Booking’s global diversification, which allows it to mitigate the macroeconomic pressures faced by U.S. competitors like Airbnb.

Despite a lofty valuation, Booking Holdings (BKNG) remains attractive at its current price of around $5,100. The stock’s strong fundamentals and limited downside risk make it an appealing investment choice.

An analysis of BKNG’s valuation against its performance in recent years reveals noteworthy insights. We have assessed BKNG across key parameters of Growth, Profitability, Financial Stability, and Downturn Resilience, concluding the company has a very strong operational performance and financial condition, as outlined below. For investors wanting less volatility, the Trefis High Quality Portfolio has consistently outperformed the S&P 500, generating returns of over 91% since its inception.

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Valuation Comparison: Booking vs. S&P 500

When examining price-to-sales and profit ratios, BKNG stock appears to be slightly priced higher than the broader market.

• Booking’s price-to-sales (P/S) ratio is 6.8, compared to 2.8 for the S&P 500.
• The company’s price-to-free cash flow (P/FCF) ratio stands at 19.5, against 17.6 for S&P 500.
• Additionally, its price-to-earnings (P/E) ratio is 31.7, versus the benchmark’s 24.5.

Revenue Growth Trends for Booking

Booking has demonstrated impressive revenue growth in recent years.

• The company’s top line has grown at an average rate of 30.7% over the past three years, compared to a 6.2% increase for the S&P 500.
• Its revenues increased 11.1%, from $21 billion to $24 billion in the last twelve months, against 5.3% growth for the S&P 500.
• Quarterly revenues rose 7.7%, reaching $4.8 billion, up from $4.4 billion a year prior, while the S&P 500 saw a 4.9% uptick.

Profitability Analysis of Booking Holdings

Booking’s profit margins are significantly higher than many firms within the Trefis coverage universe.

• The company reported an operating income of $7.6 billion over the last four quarters, yielding a robust operating margin of 31.8%, compared to 13.1% for the S&P 500.
• Its operating cash flow (OCF) for this period was $8.3 billion, reflecting a high OCF margin of 35.1% versus 15.7% for S&P 500.
• Net income for the last four-quarter span was $5.5 billion, indicating a net income margin of 22.6%, well above the S&P 500’s 11.3%.

Assessment of Booking’s Financial Stability

Booking’s balance sheet reflects very strong fundamentals.

• The company’s debt totaled $17 billion at the end of the most recent quarter, while its market capitalization was $166 billion as of April 30, 2025. This results in a desirable debt-to-equity ratio of 10.5%, compared to 21.5% for the S&P 500.
• Cash, including equivalents, constitutes $16 billion of Booking’s $27 billion total assets, yielding a robust cash-to-assets ratio of 59.3%, versus 15.0% for S&P 500.

Downturn Resilience of BKNG Stock

Historically, BKNG stock has been more adversely affected than the benchmark S&P 500 during downturns. While investors hope for a soft landing in the U.S. economy, it’s important to consider potential risks in another recession.

Impact of Economic Events

During the 2022 inflation shock, BKNG stock dropped 37.2% from a peak of $2,616.41 on February 18, 2022, to $1,643.21 by September 30, 2022, compared to a 25.4% decline in the S&P 500.

BKNG stock fully recovered to its pre-crisis peak by May 2, 2023, and subsequently reached a high of $5,300.34 on December 8, 2024, trading currently around $5,100.

Covid Pandemic (2020)

During the COVID-19 pandemic, BKNG stock fell 44.8% from a high of $2,086.90 on January 10, 2020, to $1,152.24 on March 23, 2020, while the S&P 500 saw a decline of 33.9%.

Again, BKNG stock rebounded to its pre-crisis peak by November 9, 2020.

Global Financial Crisis (2008)

BKNG stock experienced a 66.3% drop from $139.66 on May 13, 2008, to $47.07 by November 6, 2008, while the S&P 500 underwent a 56.8% downturn. However, BKNG stock fully recovered to its pre-crisis peak by August 10, 2009.

Conclusion: Overall Assessment of BKNG Stock

In summary, Booking’s performance across several key areas is as follows:

• Growth: Very Strong
• Profitability: Very Strong
• Financial Stability: Extremely Strong
• Downturn Resilience: Weak
• Overall: Very Strong

This analysis suggests the stock is attractive, indicating that BKNG could be a wise purchase.

While BKNG stock shows promise, investing in individual equities can carry risk. Investors may consider the Trefis Reinforced Value (RV) Portfolio, which has surpassed its all-cap stock benchmarks, delivering solid returns. The RV Portfolio employs a strategy of quarterly rebalancing across large, mid, and small-cap stocks, offering flexibility in favorable market conditions while mitigating losses in downturns.

The views and opinions expressed herein are those of the author and do not necessarily reflect those of Nasdaq, Inc.