Booking Holdings Takes $1 Billion Hit in Q3 as FTC Matter Cuts Revenue

Direct answer: Booking Holdings took a $1 billion hit in the third quarter of 2026 linked to a Federal Trade Commission (FTC) matter, which cut its reported revenue even though more people booked travel through its sites.

What happened

Booking Holdings, the company behind Booking.com, Priceline and other travel brands, reported its third quarter results on November 3, 2026. Reuters reported that the company recorded a $900 million reduction in revenue and accrued a $100 million loss related to an FTC action involving Priceline’s connection to deceptive hotel ads.

Reported revenue fell 1 percent from a year earlier to $8.89 billion, compared with about $9 billion a year earlier. Analysts surveyed by FactSet had expected revenue of $9.55 billion, according to Dow Jones coverage via Morningstar, so the reported figure missed that forecast, largely because of the $900 million reduction.

The underlying travel business still grew. Gross bookings, the total value of travel booked before cancellations, rose 10 percent to $54.5 billion. Room nights, the number of hotel nights booked, grew 7 percent to 345 million.

Profit told a mixed story too. Net income slipped 1 percent to $2.7 billion, or $3.61 per share. After removing the FTC related items and other one off items, adjusted earnings were $4.66 per share, up from $3.98 a year earlier and ahead of the $4.49 analysts expected.

The company said a settlement has not been agreed and further fines remain possible, and that litigation remains possible. Shares were down 1.5 percent in extended trading after the results, Reuters reported.

For the fourth quarter, Booking expects room nights to grow 1 to 3 percent and gross bookings to grow 2 to 4 percent.

Why it matters for beginners

This story is a good example of why reported results and adjusted results can look very different. Reported revenue includes the $900 million reduction. Adjusted revenue, which removes that item, was $9.8 billion, up 9 percent from a year earlier. Neither figure is wrong, but they answer different questions: reported results show what the company officially recorded, while adjusted results try to show the normal trading trend without one off items.

It also shows that a company can grow its bookings and still report lower revenue. Bookings measure demand, while revenue is what the company records after items such as the FTC related reduction. That is why investors look at both numbers, not just one.

The FTC matter itself is a reminder that legal and regulatory costs can be large for big companies. Booking warned that more fines are possible, so the $1 billion total so far may not be the final cost.

A similar pattern appeared in another recent earnings season story, where strong headline growth did not stop shares falling. You can read that separate story here: Shopify Revenue Jumps 32% in Q3, but Shares Fall Sharply.

What to watch next

Watch whether Booking reaches a settlement with the FTC, and whether it warns of further fines. Any new charge would again affect reported profit, even if bookings keep growing.

Also watch fourth quarter bookings and room nights against the company’s forecast of 1 to 3 percent room night growth and 2 to 4 percent gross bookings growth. Travel demand in the final months of the year will show whether the softer trend toward the end of the third quarter continued.

Finally, watch how investors treat the gap between reported and adjusted profit. If bookings stay strong, the market may focus more on the underlying trend than on the one off charge, but a larger fine could change that view quickly.

FAQ

What is the FTC?

The FTC is the US Federal Trade Commission, a government agency that protects consumers and promotes competition. In this case, Reuters reported that it has been investigating Priceline’s relationship with a third party website over hotel ads and fees.

Why did revenue fall if bookings rose?

Because the $900 million revenue reduction was recorded in the quarter. Bookings grew 10 percent, but reported revenue still fell 1 percent after that reduction was applied.

Does the $1 billion hit mean Booking lost $1 billion in cash?

Not exactly. The $1 billion is the combined total of the $900 million revenue reduction and the $100 million accrued loss. An accrual is an amount a company records for a cost it expects, and the final cash outcome will depend on any settlement or court result.

Does this mean travel demand is weak?

Not on these numbers. Gross bookings rose 10 percent and room nights rose 7 percent, which points to continued demand. The company did say travel demand moderated toward the end of the quarter, so the fourth quarter update will be the next test.