NEW YORK, July 28, 2026, 4:58 p.m. EDT — Regular U.S. trading has ended, with after-hours deals now active.
- Royal Caribbean closed up 5.7% at $322.50.
- The company lifted its 2026 adjusted-profit midpoint by 2.9%, as revenue growth eased to 9%.
- A midpoint estimate indicates that Q2 accounted for 66% of the guidance rise.
Royal Caribbean Group NYSE:RCL finished the session up 5.7% at $322.50 after raising its profit outlook for 2026. The gain was recorded even as the company reported weaker bookings on some routes and reduced its revenue guidance.
Investors favored profit gains over top-line expansion. Adjusted earnings per share, or EPS, are expected to climb 14% this year, while revenue is forecast to grow 9%. Management in April anticipated about 11% EPS growth alongside a 10% revenue increase.
Adjusted earnings per share for the second quarter reached $4.21, surpassing the analyst consensus from LSEG by 5.8%. Revenue increased by 6% to $4.83 billion, narrowly exceeding the projected $4.82 billion. However, adjusted EPS declined from $4.38 reported in the same quarter last year.
The context is important for the annual forecast revision. The midpoint was raised by 50 cents, moving from $17.30 to $17.80. Second-quarter results surpassed management’s earlier midpoint by 33 cents. As a result, based on midpoint math, 66% of the projected increase had already been realized.
LSEG forecasts and company outlook are shown below for comparison. Midpoints are calculated arithmetically.
| Measure | Earlier benchmark | Latest | Change |
|---|---|---|---|
| Q2 adjusted EPS against analyst forecast | $3.98 | $4.21 | +5.8% |
| Q2 adjusted EPS compared to company midpoint | $3.88 | $4.21 | +$0.33 |
| Projected full-year revenue increase | About 10% | 9% | -1 percentage point |
| Full-year net-yield midpoint | 2.80% | 2.60% | -0.20 percentage point |
| Midpoint for full-year adjusted EPS | $17.30 | $17.80 | +2.9% |
The company tightened its net-yield forecast to 2.35%-2.85%, compared to its previous range of 2.3%-3.3%. Net yield refers to adjusted gross margin per available passenger cruise day.
Management attributed weaker demand on certain routes to ongoing Middle East tensions. CEO Jason Liberty noted that including airfare led to higher costs for Americans on European cruises. As a result, some customers postponed vacations or opted for Caribbean itineraries instead.
Bookings remained higher than the same period last year and reached record-high prices. Occupancy levels continued to be robust. CFO Naftali Holtz said 2027 trends were “pacing ahead of historical levels.” PR Newswire
Near-term pressure remains a focus. Net yields for the third quarter are expected to remain about stable. Revenue is forecast to increase by 8%, with unit costs apart from fuel projected to decrease 1.2%-1.7%. The adjusted earnings per share outlook stands at $6.26-$6.36.
Fuel continues to be a key factor. Fuel costs for the quarter increased by 27% to $355 million. The projection for yearly fuel spending dropped by $10 million to approximately $1.34 billion. Swaps currently hedge around 58% of expected 2026 fuel consumption.
Royal Caribbean is “relatively well positioned,” according to Consumer Edge analyst Michael Gunther. He pointed to the group’s primary brand and its comparatively strong presence among higher-income clientele. Reuters
Cruise stocks climbed as well. Carnival NYSE:CCL advanced 4.1% to $28.23. Norwegian Cruise Line Holdings NYSE:NCLH increased 5.9% to $21.22. Royal Caribbean’s price-to-earnings ratio stood at 19.7, compared to 12.6 for Carnival and 17.1 for Norwegian.
Norwegian is set to report on Thursday. The results will indicate if Royal Caribbean’s solid pricing power is seen throughout the industry.
Risks: Booking softness may offset small savings. Royal Caribbean estimates a $156 million impact from a 1% shift in full-year yield. A 1% change in ex-fuel costs would have a $73 million effect. Prolonged conflict, softer affluent demand, or increased airfares could undermine the higher forecast.
