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When a company splits its stock, it does not change the underlying fundamentals of the business. However, a stock split can signal management’s confidence that performance will remain solid. One of the biggest stock splits of 2026 is Booking Holdings (BKNG), which enacted a 25-for-1 stock split earlier this month—the first in the company’s history.
After the split, BKNG shares trade for less than $200. While the split itself does not alter fundamentals, it can be viewed as a sign that management believes the company can continue building momentum.
Booking’s management is focused on improving operations to expand its operating margin. In the fourth quarter, the adjusted EBITDA margin expanded to 36.9%, up from 35% a year ago.
The improvement was driven by about $250 million in savings through its “Transformation Program.” Management said it exited the year with $550 million in annual run-rate savings and expects to maintain that pace in 2026.
Booking is also investing to support continued growth. The company plans to invest about $700 million in strategic areas, including:
Management expects these efforts to generate $400 million in incremental revenue in 2026, bringing the net investment down to $300 million.
Long-term, Booking aims to be a one-stop shop for travelers through its Connected Trip vision. The company currently counts any booking where a traveler books multiple services through its platform—for example, a hotel and a flight.
OpenTable adds restaurant bookings, Booking’s platform includes a growing number of tours and experiences, and management is making it easier to pay for everything with its payments platform. Management reported high-20% growth in Connected Trips last quarter, though Connected Trips remain a low-double-digit percentage of total transactions.
Booking expects earnings-per-share growth to be in line with its long-term target of 15% this year. With the stock trading for 17 times forward earnings estimates, the split-era setup is presented as an opportunity for investors.
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