BKNGNEUTRAL

Gross Margin

100.0%

Higher than 100% of Consumer Cyclical sector peers

Updated 1928h ago

Sector Performance

100th percentile

BKNG

100.0%

Sector Median

36.3%

Sector Avg

30.2%

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Deep Analysis

Booking Holdings' gross margin of 100.0% means that after subtracting the direct costs of providing its travel services, the company retains every dollar of revenue — essentially, Booking has no cost of goods sold in the traditional sense because its platform model incurs minimal direct per-transaction costs.

This far exceeds the sector median of 36.6% for Consumer Cyclical companies, placing Booking in the 100th percentile among peers, meaning it has the highest gross margin in the group. However, the metric shows no trend data because the year-over-year change and quarter-over-quarter change are both listed as N/A, and the last eight quarters provide no historical values to analyze. The combination of an extreme gross margin level with no observable trend suggests the company maintains a durable competitive advantage, but the absence of movement offers no insight into near-term risk or opportunity. This metric supports the overall NEUTRAL verdict: while the 100.0% margin underscores exceptional profitability and pricing power, the lack of directional data prevents any bullish or bearish tilt from this measure alone.

Frequently Asked Questions

What does the Gross Margin tell investors about BKNG?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does BKNG's Gross Margin compare to its sector?

BKNG's Gross Margin of 100.0% compares to a Consumer Cyclical sector median of 36.3%, placing it in the 100th percentile.

Who are BKNG's closest peers by Gross Margin?

The closest Consumer Cyclical peers by Gross Margin include: DKNG (42.3%), BBWI (42.6%), SE (44.3%), YUM (44.7%), RIDE (49.4%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.