Royal Caribbean stock gets lift from stronger results, raised outlook

Royal Caribbean Group delivered a stronger-than-expected third quarter on October 27, 2026, and raised its full-year earnings outlook. The company said close-in demand, particularly in Europe and the Caribbean, supported the result, while some cost benefits reflected expenses moving into the fourth quarter. The full release is available from Royal Caribbean Group via PR Newswire.

Demand Supports Higher Guidance

Third-quarter revenue increased 9 percent from a year earlier to 5.6 billion US dollars. Adjusted earnings per share came in at 6.57 US dollars, compared with 5.75 US dollars in the year-earlier period, while reported diluted EPS was 6.45 US dollars versus 5.74 US dollars.

Adjusted EBITDA reached 2.5 billion US dollars, up from 2.3 billion US dollars a year earlier, and the adjusted EBITDA margin improved to 45.4 percent from 44.6 percent. Royal Caribbean carried 2.68 million guests, compared with 2.47 million in the third quarter of 2025. Occupancy was 112.4 percent, reflecting the industry's practice of measuring passengers against double-occupancy capacity.

Net yields increased 0.9 percent on a reported basis and 0.6 percent in constant currency. Net cruise costs excluding fuel per available passenger cruise day fell 1.9 percent on a reported basis and 1.8 percent in constant currency. Management cautioned that the cost improvement partly reflected the timing of expenses that shifted into the fourth quarter.

Fuel And Currency Remain Offsets

Royal Caribbean now expects full-year 2026 adjusted EPS of 17.85 to 17.95 US dollars. The outlook calls for revenue growth of 9 percent and net yield growth of approximately 2.7 percent as reported, or 2.1 percent in constant currency. Capacity is expected to increase 6.6 percent.

The higher earnings outlook reflects the third-quarter outperformance, although higher fuel costs and currency exchange rates partly offset the benefit. The company expects fourth-quarter adjusted EPS of 3.48 to 3.58 US dollars and fourth-quarter fuel expense of 379 million US dollars, with 58 percent of forecast consumption hedged via swaps.

Management said bookings for 2027 cruises were running ahead of historical levels at higher rates. Chief Executive Jason Liberty described consumer demand as strong and said the group remained on track for its Perfecta target of 20 percent adjusted EPS compound annual growth from 2024 through 2027, subject to the risks in the company's forward-looking statements.

New Vacation Platform Expands

Royal Caribbean also highlighted its planned 50 percent investment in Sandals and Beaches Resorts. The transaction would add 18 existing resorts and three resorts under development to the group's vacation platform. Closing is expected in early 2027, subject to customary conditions and regulatory approvals, and the company expects its share of earnings to be accretive once the transaction closes.

Royal Caribbean stock traded at 303.30 euros on Lang & Schwarz at 14:02 CET on Tuesday, November 10, 2026.

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