Booking Holdings Announces a Massive 25-for-1 Stock Split. Here's What Investors Need to Know
•February 19, 2026
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Companies Mentioned
Why It Matters
The split makes Booking’s high‑priced shares more accessible, potentially widening the investor base and supporting price momentum, while the underlying robust fundamentals suggest continued earnings growth in the travel sector.
Key Takeaways
- •Booking approves 25‑for‑1 forward stock split.
- •Split effective April 6, 2026, on adjusted basis.
- •Q4 revenue $6.3B, EPS $44.22, cash flow surge.
- •Dividend raised to $10.50, payout ratio ~11%.
- •Analysts expect ~25% post‑split price gain.
Pulse Analysis
Forward stock splits have re‑emerged as a market‑friendly tool, primarily because they lower the nominal price of a share without diluting ownership. For retail investors, a sub‑$200 price tag feels more attainable than a $4,000‑plus ticker, which can broaden the shareholder base and generate short‑term buying interest. Booking Holdings, the world’s largest online travel agency, chose a 25‑for‑1 split—the most aggressive ratio among recent high‑profile splits. By issuing 24 additional shares for each existing one, the company aims to increase liquidity while preserving the underlying equity value.
The split arrives on the back of a robust fourth‑quarter performance. Booking reported $6.3 billion in revenue, a 16% year‑over‑year increase, and earnings per share of $44.22, up 38%. Operating cash flow surged to $1.5 billion and free cash flow more than doubled, underscoring the business’s cash‑generating power. Management also lifted the quarterly dividend to $10.50 per share, maintaining a modest 11% payout ratio that leaves room for future hikes. Valuation-wise, the stock trades around 25× earnings, comfortably below its three‑year average multiple of 30, suggesting a relative discount.
Investors should weigh both the psychological boost of a split and the company’s fundamentals. Historical data from Bank of America shows that stocks undergoing splits tend to out‑perform the S&P 500 by roughly 25% in the year following the announcement, but the effect is not guaranteed. Booking’s strong balance sheet, expanding global bookings, and resilient cash flow provide a solid foundation for long‑term growth, even as the travel sector faces cyclical headwinds. Consequently, the split may act as a catalyst, but prudent investors will focus on the underlying earnings trajectory rather than the headline‑grabbing ratio.
Booking Holdings Announces a Massive 25-for-1 Stock Split. Here's What Investors Need to Know
Booking Holdings Announces First‑Ever Forward Stock Split
Online travel agency Booking Holdings (BKNG 6.23%) has long been one of the priciest stocks on the market. The parent company of Booking.com, Priceline, Kayak, and OpenTable was trading for more than $4,200 per share as of the market close on Wednesday — but that’s about to change.
In conjunction with its fourth‑quarter financial report, Booking announced plans for its first‑ever forward stock split. Here’s what investors need to know.
Image: A couple on lounge chairs at the beach enjoying drinks and the sunset (Getty Images).
The specifics
After the market close on Wednesday, Booking announced that its board of directors had approved a massive 25‑for‑1 stock split. “The stock split will be effected through the filing of an amendment to the Company’s Restated Certificate of Incorporation with the Delaware Secretary of State,” according to a regulatory filing.
Shareholders of record as of Friday, March 6, 2026, will receive an additional 24 shares of stock for each share they own, with the distribution occurring after the market close on Thursday, April 2, 2026. The stock is expected to begin trading on a split‑adjusted basis when the market opens on Monday, April 6.
Shareholders won’t need to take any additional steps to receive the newly minted shares. Brokerages and investment banks will handle the details behind the scenes, and the stock will be deposited directly into investors’ accounts upon completion of the split.
Because of the complex process, the additional shares may not be available immediately after market close on April 2. Timing may vary by brokerage and could take several days for the changes to be reflected in investors’ accounts.
Where to invest $1,000 in 2026?
The S&P is at all‑time highs. UBS projects it could climb to 7,500 by 2026. Meanwhile, Bill Gates warns that many investments could be “dead ends.”
So where should investors put their money right now?
The Motley Fool’s analysts set out to answer that question. After weeks of deep research and debate, they released a new report revealing their 5 highest‑conviction stock recommendations for 2026 and beyond.
What it means for investors
Stock splits have enjoyed a resurgence in recent years, fueled by robust price gains and investor enthusiasm. It’s important to note that splits are largely cosmetic and don’t change the underlying value of the shares owned.
For example, rather than one share of Booking Holdings worth about $3,900 (as of this writing), shareholders will have 25 shares worth $156 each ($156 × 25 = $3,900). Put another way, it doesn’t matter if you have ten $1 bills or one $10 bill; you still have the same amount of money to spend. Similarly, Booking Holdings shareholders will simply have a larger number of lower‑priced shares.
There is an element of investor sentiment that comes into play. Excitement about stock splits has been shown to drive up the price of the shares leading into the split. Market watchers also suggest that lowering the share price may attract investors who were put off by the high sticker price.
Experts suggest that the strong underlying business and financial performance that led to the split will generally continue, driving additional gains. History shows that companies that complete stock splits generate stock‑price gains of about 25 % in the year following the announcement, compared with average increases of 12 % for the S&P 500, according to data compiled by Bank of America analyst Jared Woodard.
That doesn’t mean investors should buy Booking Holdings solely because of the split, but there are other reasons to be bullish.
Image: Booking Holdings stock quote.
Is the stock a buy?
Booking Holdings has a long history of outperforming the broader market, and its recent results illustrate why. Fourth‑quarter revenue of $6.3 billion grew 16 % year over year, while earnings per share of $44.22 climbed 38 %. The results were driven by gross bookings that grew 16 % and room nights that climbed 9 %. Operating cash flow of $1.5 billion and free cash flow of $1.4 billion surged 107 % and 120 %, respectively.
The company also raised its dividend to $10.50 per share, a 9 % increase compared with 2025. With a payout ratio of about 11 %, there’s still ample room for future increases.
The stock was down on Thursday following the financial report, as the company forecast constant‑currency gross‑booking growth of 8 % at the midpoint of its guidance, down from 10 % in 2025. This sparked concerns about a potential slowdown in the travel industry.
On the bright side, Booking Holdings stock has fallen 32 % from its peak, putting it squarely in bargain territory. The stock is currently selling for 25 times earnings, well below its three‑year average multiple of 30. This is despite Wall Street predicting revenue growth of 10 % in 2026 and 8 % in 2027.
To be clear, investors shouldn’t buy shares solely because of the upcoming stock split. Rather, it’s the company’s long track record of performance and stellar execution that makes Booking Holdings a compelling choice.
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