Royal Caribbean Cruises (NYSE:RCL) Issues Earnings Results, Beats Expectations By $0.19 EPS

Royal Caribbean Cruises (NYSE:RCL) posted its quarterly earnings results on Tuesday. The company reported $6.57 earnings per share (EPS) for the quarter, topping the consensus estimate of $6.38 by $0.19, FiscalAI reports. The business had revenue of $5.59 billion during the quarter, compared to analyst estimates of $5.61 billion. The company’s quarterly revenue was up 8.8% compared to the same quarter last year. During the same quarter last year, the firm posted $5.75 EPS.

Here are the key takeaways from Royal Caribbean Cruises’ conference call:

• Third-quarter results exceeded expectations: Revenue increased 9% year over year, adjusted EPS was $6.57—$0.26 above guidance—and strong close-in demand and onboard spending drove the beat.
• Royal Caribbean raised full-year 2026 adjusted EPS guidance to $17.85–$17.95, representing approximately 14% growth, while maintaining expectations for about 2.1% net-yield growth and flat net cruise costs excluding fuel.
• Demand momentum remains strong, with booking volumes up in the mid-teens and 2027 bookings up in the high teens year over year; booked positions for both 2026 and 2027 are ahead of prior-year levels at record rates.
• The planned approximately $3 billion investment for a 50% stake in Sandals and Beaches Resorts is expected to be immediately accretive, expand Royal Caribbean’s vacation offering into all-inclusive resorts, and create several hundred million dollars of potential synergies over time.
• Higher fuel costs and unfavorable currency movements remain headwinds, with projected 2026 fuel expense of approximately $1.35 billion; management also said the Sandals transaction’s contribution to 2027 earnings will initially be immaterial and dependent on its closing date.

Royal Caribbean Cruises Stock Performance

Shares of NYSE:RCL opened at $296.48 on Wednesday. Royal Caribbean Cruises has a 52 week low of $222.22 and a 52 week high of $356.39. The firm has a 50 day simple moving average of $271.41 and a 200 day simple moving average of $286.77.

Royal Caribbean Cruises Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Investors of record on Thursday, September 17th were given a $1.50 dividend. This represents a $6.00 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Thursday, September 17th.

More Royal Caribbean Cruises News

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Q3 earnings beat expectations: Adjusted EPS was $6.57, above the $6.38 analyst consensus and up from $5.75 a year earlier. GAAP EPS was $6.45, while revenue rose 8.8% year over year to $5.59 billion, roughly in line with estimates. Royal Caribbean Group Reports Third Quarter Results Above Expectations and Raises Full Year Guidance
• Positive Sentiment: Guidance was raised: Royal Caribbean now expects 2026 adjusted EPS of $17.85 to $17.95. The increase reflects the strong third quarter, although management partly offset it for higher-than-expected fuel costs. Royal Caribbean Lifts 2026 Outlook as Strong Bookings Offset Cost Pressures
• Positive Sentiment: Demand trends remain favorable: Strong close-in demand, mid-teens year-over-year booking growth and increased interest in 2027 travel supported management’s outlook. Lower costs, partly due to timing, also boosted quarterly profitability. Royal Caribbean Three Key Takeaways for Long-Term Investors
• Positive Sentiment: Technical momentum improved: The stock moved above its 200-day moving average and cleared a recognized buy point, reinforcing the bullish reaction to the earnings report. Royal Caribbean Tops Buy Point on Bullish Outlook
• Neutral Sentiment: Royal Caribbean’s $3 billion investment for a 50% stake in Sandals expands its resort exposure and could support long-term growth, but it also increases capital commitments and integration risk.
• Negative Sentiment: Revenue narrowly missed estimates, and higher fuel costs remain a profitability risk. Unusually heavy put-option activity also signals that some traders continue to hedge against volatility.

Analyst Ratings Changes

Several research firms have recently weighed in on RCL. Sanford C. Bernstein reissued an “outperform” rating and set a $355.00 price objective (down from $380.00) on shares of Royal Caribbean Cruises in a research note on Wednesday, September 23rd. The Goldman Sachs Group restated a “buy” rating and issued a $358.00 target price on shares of Royal Caribbean Cruises in a report on Wednesday. Tigress Financial reaffirmed a “buy” rating and set a $425.00 target price on shares of Royal Caribbean Cruises in a research report on Monday, September 28th. Wells Fargo & Company reduced their target price on Royal Caribbean Cruises from $388.00 to $358.00 and set an “overweight” rating for the company in a report on Monday, October 12th. Finally, Northcoast Research reduced their target price on Royal Caribbean Cruises from $368.00 to $335.00 and set a “buy” rating for the company in a report on Thursday, September 24th. Twenty-one investment analysts have rated the stock with a Buy rating and seven have given a Hold rating to the company. Based on data from MarketBeat, Royal Caribbean Cruises currently has a consensus rating of “Moderate Buy” and a consensus target price of $352.35.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd., doing business as Royal Caribbean Group (NYSE: RCL), is a global cruise company that operates vacation cruises and related travel experiences. Its fleet visits destinations across the Caribbean, Europe, Alaska, Asia, Australia, and other regions, with itineraries that typically include onboard entertainment, dining, accommodations, recreational activities, and shore excursions.

The company’s principal brands include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.