Royal Caribbean stock faces stronger outlook after Q3 results

Published on 11/12/2026 at 15:01 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Royal Caribbean stock enters a stronger earnings outlook after third-quarter revenue rose 9%. Management sees firm demand for 2027 sailings.

Earnings and outlook

Royal Caribbean reported third-quarter revenue of 5.6 billion US dollars, up 9% year over year, with adjusted EPS of 6.57 US dollars.
Management said 2027 bookings were running in the high teens above the prior year at higher rates.
The planned 50% investment in Sandals and Beaches Resorts is expected to close in early 2027, subject to customary conditions and approvals.

Royal Caribbean, LR0008862868, Illustration mit AI erstellt.

Royal Caribbean Group reported stronger-than-expected third-quarter results on October 27, 2026, and raised its full-year adjusted earnings outlook. The cruise operator said total revenue reached 5.6 billion US dollars, up 9% from the year-earlier quarter, while adjusted earnings per share increased to 6.57 US dollars from 5.75 US dollars. The release was carried by AAP/PRNewswire.

Demand strengthens the earnings base

Royal Caribbean said the quarter benefited from strong close-in demand and lower costs caused by expense timing. Capacity increased 8% year over year, and the group carried 2.7 million guests. Load factor reached 112%, while net yields rose 0.9% as reported and 0.6% in constant currency. Demand in Europe and the Caribbean exceeded the company's expectations.

Adjusted EBITDA was 2.5 billion US dollars, compared with 2.3 billion US dollars a year earlier. Adjusted net income reached 1.8 billion US dollars, up from 1.6 billion US dollars. The company cautioned that part of the favorable cost performance reflected expenses shifting into the fourth quarter, an important distinction for investors assessing the margin trend.

Full-year guidance moves higher

Royal Caribbean now expects 2026 adjusted EPS of 17.85 to 17.95 US dollars. Revenue is projected to grow 9%, while net yields are expected to increase 2.7% as reported and 2.1% in constant currency. Net cruise costs excluding fuel per available passenger cruise day are expected to be broadly flat in constant currency.

Higher fuel costs and currency movements partly offset the stronger operating performance. The company expects fourth-quarter adjusted EPS of 3.48 to 3.58 US dollars and has included 379 million US dollars of fourth-quarter fuel expense in its outlook. Fuel consumption for the quarter is 58% hedged via swaps.

Bookings point to 2027 visibility

Since the previous earnings call, booking volumes across major channels increased in the mid-teens year over year. Bookings for 2027 sailings rose in the high teens, with management saying rates were also higher than a year earlier. The group expects 2027 capacity to increase 4.5% and remains focused on its Perfecta goal of 20% adjusted EPS compound annual growth from 2024 through 2027.

Royal Caribbean also announced an agreement to acquire a 50% interest in Sandals and Beaches Resorts. The portfolio covers 18 resorts and three properties under development. The transaction is expected to close in early 2027, subject to customary closing conditions and regulatory approvals, and the company's share of earnings is expected to be immediately accretive after closing.

Royal Caribbean stock and investor focus

Royal Caribbean stock traded at 298.75 euros on Lang & Schwarz at 14:45 CET on Thursday, November 12, 2026. The quote reflects the euro trading venue and is presented without a daily comparison to an Xetra close.