After a surge of 16,831% to four digits, Booking(BKNG.US) announced a stellar earnings report and officially declared a 1:25 stock split

The Tong Finance APP has learned that one of the highest-valued stocks in the U.S. stock market is about to undergo a significant price reduction. Booking Holdings (BKNG.US) closed at $4,269.99 per share on Wednesday, and the company announced that its board has approved a 1-for-25 stock split, giving investors 25 new shares for every 1 share held — a common measure taken by high-growth companies to ensure their stock does not appear too expensive to investors.

In 2003, the company took the opposite approach. At that time, it was called Priceline.com and was struggling due to the burst of the internet bubble. To boost the stock price, the company approved a 1-for-6 reverse stock split. Since then, its online travel business growth has driven a substantial increase in stock price, rising approximately 16,831%. This pushed Booking’s stock into four-figure territory, which is rare on Wall Street.

This stock split will reduce Booking’s share price to about $165 per share and will take effect on April 2. The announcement coincided with the company’s latest quarterly earnings, which showed a 16% year-over-year increase in bookings to $43 billion, surpassing analyst expectations. At a fixed exchange rate, total revenue grew 15.5% to $6.35 billion.

Room nights increased 9% year-over-year, car rental days grew 4%, and airline ticket sales rose 28%. Merchant bookings increased 27.2%, while agent bookings declined 5.7%.

Adjusted EBITDA grew 19% year-over-year to $2.2 billion. Earnings per share were $44.22, beating market expectations of $42.07 and last year’s $31.95. Free cash flow more than doubled to $1.4 billion.

Meanwhile, Booking’s first-quarter total booking volume guidance exceeded expectations, indicating continued strength in the travel industry. Priceline’s parent company stated in a release that it expects total bookings to grow by 15% (midpoint), higher than the previous analyst forecast of 13%. This metric reflects the total value of travel services booked by customers (net of cancellations) and is a key driver of the company’s revenue. Its revenue guidance also surpassed expectations (midpoint).

The Connecticut-based company announced plans to significantly increase reinvestment funded by its savings plan. The company plans to spend about $700 million more in 2026 than its usual expenditure level, compared to approximately $170 million reinvested in 2025. The CFO stated during the earnings call that these investments will be used to expand artificial intelligence, regional expansion, and advertising operations. The company expects these initiatives to generate about $400 million in additional revenue this year.

Booking also noted that average daily room rates in the fourth quarter slightly declined (a key indicator of pricing and per-night traveler spending), and length of stay shortened compared to the same period last year. Steenbergen said these trends “may indicate that some consumer groups are still cautious about their discretionary spending.”

Earlier, peers Expedia Group (EXPE.US) reported its fastest quarterly revenue growth in three years, driven by strong travel demand and increased bookings in the U.S. Airbnb (ABNB.US) also announced fourth-quarter bookings exceeding expectations and forecast at least double-digit low-end revenue growth this year. Both companies indicated that consumers continue to prioritize travel, further reinforcing the strong demand environment for online platforms.