Royal Caribbean Beats Q3 Earnings and Raises Full Year EPS Guidance to $17.85-$17.95

Royal Caribbean Group reported third-quarter 2026 adjusted earnings per share of $6.57, beating the consensus estimate of $6.38 by $0.19 and rising 14% year over year. Net income for the quarter came in at $1.70 billion, up 6% from the prior year period, on total revenue of $5.60 billion, a 9% increase year over year that fell just $20 million short of the $5.61 billion analyst estimate. The company carried 2.70 million guests, up 9% year over year, at a load factor of 112%, while operational capacity expanded 8%. Net cruise costs excluding fuel per available passenger cruise day fell 1.9% on an as-reported basis, reflecting continued cost discipline.

Royal Caribbean raised its full-year 2026 adjusted EPS guidance to a range of $17.85 to $17.95, above the prior Wall Street consensus of $17.83, and kept full-year revenue growth at approximately 9% year over year. Net yields are expected to rise roughly 2.7% on an as-reported basis for the full year. For the fourth quarter, the company guided adjusted EPS to $3.48 to $3.58, below the analyst estimate of approximately $3.65, with net yield growth projected at 4.4% to 4.9% as reported. Management noted that 2027 bookings are pacing ahead of historical levels at higher rates and that the underlying business is performing well ahead of initial expectations.

Beyond the financial results, Royal Caribbean announced an agreement to acquire an interest in Sandals and Beaches, marking an expansion into all-inclusive land-based resorts, and unveiled plans to launch Celebrity River Cruises in 2027. Shares of RCL rose approximately 5.6% in pre-market trading following the report.