Royal Caribbean lifts earnings outlook as costs rise
The cruise operator trimmed its full-year revenue target while forecasting continued growth in 2026.
Royal Caribbean’s latest reported quarterly revenue increased 6%, marking its second-weakest growth rate since operations resumed five years ago. Adjusted earnings declined for the first time since the company returned to profitability, while operating expenses rose 11%.
Following the results, Royal Caribbean raised its earnings guidance but lowered its full-year revenue target. Bookings for the following year remained above historical levels, according to the report.
For 2026, the company projected revenue growth of 9% and adjusted earnings per share of $17.73 to $17.87. The midpoint of that earnings range would represent a 14% increase. Trailing revenue was reported at 71% above the company’s pre-pandemic peak in 2019, while net income had more than tripled.
Royal Caribbean, described as the second-largest cruise operator by revenue and the largest by market capitalization, was trading at 16 times the midpoint of its current-year adjusted earnings guidance. Its shares were down 14% over the prior year and 20% from the all-time high reached the previous summer. The company’s reinstated dividend had been increased four times and carried a 1.7% yield.
