Royal Caribbean Q3 2026 Beats Estimates, Raises Full-Year EPS Guidance

Royal Caribbean Group reported financial results for the third quarter of 2026, announcing earnings per share (EPS) of $6.45 and Adjusted EPS of $6.57. These figures exceeded the company's internal guidance, attributed to strong close-in demand and lower costs due to timing. The company also raised its full-year 2026 Adjusted EPS guidance to a range of $17.85 to $17.95.

For the third quarter, total revenue was reported at $5.6 billion, representing a 9% increase year over year. The company delivered 2.7 million guests, a 9% increase, while capacity grew by 8%. The load factor for the quarter was 112%. Net Yields increased 0.9% as-reported and 0.6% in Constant Currency, driven by better-than-expected demand in Europe and the Caribbean. Net Income was $1.7 billion, or $6.45 per share, while Adjusted Net Income was $1.8 billion, or $6.57 per share.

Regarding the remainder of 2026, the company expects total revenue to grow 9% year over year. Net Yields are expected to increase approximately 2.7% as-reported and 2.1% in Constant Currency. Net Cruise Costs (excluding Fuel) per Available Passenger Cruise Day are expected to increase approximately 0.4% as-reported and remain approximately flat in Constant Currency. For the fourth quarter, Adjusted EPS is expected to be between $3.48 and $3.58.

The company also announced a partnership to acquire a 50% interest in Sandals and Beaches Resorts, expanding its vacation platform into the all-inclusive resort category. The investment is expected to close in early 2027 and be immediately accretive to earnings. Additionally, Royal Caribbean Group noted that 2027 bookings are pacing ahead of historical levels at higher rates. The company remains on track to achieve its Perfecta goals of delivering 20% Adjusted EPS CAGR from 2024 through 2027.

In terms of liquidity, the company reported $7.4 billion as of September 30, 2026. During the quarter, the company issued $1.25 billion of 5.550% senior unsecured notes due 2034 and increased its revolving credit facility by $50 million to a total capacity of $6.65 billion. Capital expenditures for the full year 2026 are expected to be approximately $4.6 billion.