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Booking Holdings Split: The Catalyst Wall Street Didn't See Coming
Reported by Chris Markoch. Posted: 2/19/2026.
What You Need to Know
- Booking Holdings announced a 25-for-1 stock split following double-digit revenue and EPS growth in Q4 2025.
- Investors remain concerned that Alphabet’s AI-powered travel tools could bypass traditional booking platforms.
- Despite the sell-off, analysts and institutions still see meaningful upside supported by strong bookings growth and valuation discounts.
Let's not bury the lead. Booking Holdings Inc. (NASDAQ: BKNG) announced a 25-for-1 stock split effective April 2. While splits don't change a company's intrinsic value, BKNG trades above $3,900 per share — a price that creates friction for many retail investors. The split will lower that barrier and could boost retail interest.
The stock split was disclosed as part of Booking's Q4 2025 earnings report. The company beat on both the top and bottom lines, reporting earnings per share (EPS) of $48.80 on revenue of $6.35 billion — increases of 17% and 16% year over year, respectively. Room nights rose 9% year over year, and gross bookings climbed 16% to $43 billion.
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Booking also issued solid guidance for the current quarter, projecting revenue growth of 14% to 16% and adjusted EBITDA growth of 10% to 14%. On a constant-currency basis, projected revenue growth is 7% to 9%, below the 11% recorded in the recent quarter.
A Strong Quarter Isn't Enough to Shake AI Fears
Despite the positive results, BKNG stock fell 8.69% at the open on Feb. 19, the day after Booking reported, reversing what had appeared to be a recovery from a bearish trend that began in July 2025. The stock is down 26.5% in 2026 and is trading near a 52-week low.
Part of the pullback reflects concerns about artificial intelligence (AI) and potential disintermediation. Some analysts worry that big tech companies leading in agentic AI — such as Alphabet Inc. (NASDAQ: GOOGL) — could build travel products that let consumers book trips without using intermediaries like Booking.
For example, Alphabet rolled out a major update to its AI Search/Travel Mode in late 2025 that enables AI agents to book travel within the Google ecosystem.
A related concern is rising marketing spend: Booking has increased spending on sponsored links to preserve its online visibility in an evolving search and discovery landscape.
Booking's Real Moat: Data, Loyalty, and Friction-Free Booking
The counterargument is that Booking can also leverage AI to strengthen its existing business. It sits on decades of consumer behavior data, has electronic connectivity with millions of accommodations, and operates a large payments network — all of which support the frictionless experience travelers expect.
That gives Booking an edge: alternatives like Google will have to offer a clear reason for consumers to switch. If the experience is essentially the same on a different platform, it won't be enough unless the new option is meaningfully cheaper — which is far from guaranteed.
Booking has built substantial goodwill, and this quarter's results suggest the company is putting that equity to work.
Wall Street Lowers Targets But Hasn't Given Up on BKNG
Analyst forecasts on MarketBeat show many price targets being marked down, with several now below the Street's consensus of roughly $6,000.
Even so, that consensus remains more than 50% above the stock's level at the time of writing, leaving considerable upside if estimates hold.
Institutional ownership also showed signs of shifting in the most recent quarter: buying volume of roughly $28 billion outpaced selling by almost a 3:1 ratio, a reversal from the heavy net selling seen for much of last year.
The strong quarter, combined with the stock-split announcement, could prompt further buying in 2026. That brings us back to the split itself.
A Long-Overdue Stock Split—But Timing Is Everything
Booking has been one of the market's most expensive stocks on a per-share basis. This isn't primarily a valuation issue: at about 20x next year's earnings, BKNG trades at a modest valuation relative to the S&P 500.
It's about the per-share price. Even after a drop of more than 25% this year, the stock still trades above $3,900 per share. Many investors find that too steep for a single share, and some avoid fractional shares altogether.
Many analysts have argued the split was overdue, but timing matters. Announcing a split during a period of weakness could dampen the short-term impact, unlike companies that have split shares while trading near 52-week highs — for example, Walmart Inc. (NYSE: WMT).
A Closer Look at Healthcare Sector Earnings: AZN vs. EW vs. ZBH
Author: Nathan Reiff. Article Published: 2/12/2026.
Key Takeaways
- AstraZeneca, Edwards Lifesciences, and Zimmer Biomet all reported earnings on the same day, but with vastly different results.
- Of these, AstraZeneca's impressive oncology medicine sales growth stands out, having driven significant top-line growth.
- Edwards and Zimmer both saw notable successes in the latest quarter, but also face sizable challenges.
More than a financial check-up, earnings for companies in the healthcare sector give investors a window into a firm's pipeline and development progress. Even established, stable healthcare firms can surprise with growth after a new blockbuster drug or device, and earnings periods are an opportunity for management to add context beyond FDA notices or approvals.
When healthcare companies report earnings on the same day, it can be a busy stretch for investors sorting noteworthy news and planning trades. On Feb. 10, 2026, three major names in the sector—AstraZeneca (NASDAQ: AZN), Edwards Lifesciences (NYSE: EW), and Zimmer Biomet (NYSE: ZBH)—all reported full-year and Q4 2025 results. Below are highlights and takeaways for healthcare investors planning next steps.
AstraZeneca Firms Up Cancer Business in a Strong Overall Quarterly Performance
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U.K.-based pharma giant AstraZeneca closed 2025 by strengthening its position in oncology, which accounted for roughly 44% of product sales in the quarter. Sales of oncology drugs such as Imfinzi and Enhertu rose as much as 48% year over year, helping total revenue increase 8.6% to $58.7 billion for the quarter.
After-tax profits rose alongside revenue, climbing to $10.2 billion from $7 billion in the prior-year quarter, and the board declared a second interim dividend 7 cents higher than last year's.
Investors also have more to watch as AstraZeneca advances dozens of drugs through clinical trials. Management said 20 Phase 3 readouts are expected in 2026, and the firm forecasts solid gains in both total revenue and core earnings per share (EPS) for full-year 2026.
In the hours after its strong earnings release, AZN shares climbed nearly 3%. Although 10 of 11 analysts rate AZN a Buy or equivalent, some on Wall Street question the stock's valuation—based on a consensus price target of $95.75, the shares are implied to have roughly a 51% downside from current levels.
TAVR Momentum Fuels Edwards Sales Growth, Though Investors Should Watch Earnings and Margins
Edwards manufactures replacement heart valves, monitoring systems and other surgical devices. The firm's Q4 2025 results were largely positive, including 13.3% year-over-year sales growth driven by strong transcatheter aortic valve replacement (TAVR) momentum and uptake of the latest SAPIEN valve.
However, adjusted EPS missed analysts' estimates, and gross profit margin declined by 0.8 percentage points year over year.
Despite the mixed quarter, Edwards remains confident it can meet its prior 2026 outlook, which targeted sales growth of 8% to 10% year over year and EPS of $2.90 to $3.05.
EW shares rose about 4% in after-hours trading to trade above $80 following the announcement.
About two-thirds of analysts covering EW rate it a Buy, and Wall Street's consensus price target implies roughly 25% upside to $96.77.
Orthopedic Demand Remains High, But Zimmer Faces Some Headwinds Going Forward
Zimmer Biomet, a maker of joint replacement systems and implants, saw its shares rise more than 3% after reporting EPS of $2.42, four cents above consensus, and revenue of $2.2 billion, up almost 11% year over year and slightly ahead of estimates. Strong demand for orthopedic products supported the top- and bottom-line growth.
Zimmer is shifting focus toward the U.S., which represents nearly 60% of its business. With insured patients continuing to use more procedures, near-term demand for Zimmer's products is expected to remain healthy.
That said, Zimmer faces headwinds from tariffs that could pressure EPS and revenue in 2026, leading management to offer conservative guidance in the latest earnings report, including adjusted EPS of $8.30 to $8.45 and free cash flow growth of 8% to 10%.
Before the earnings release, analysts were divided on Zimmer, assigning an overall Hold rating despite about 15% projected upside potential.
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