Royal Caribbean Cruises (NYSE:RCL) Posts Quarterly Earnings Results, Beats Expectations By $0.22 EPS

Posted by Brian Himes on Jul 29th, 2026

Royal Caribbean Cruises (NYSE:RCL – Get Free Report) issued its earnings results on Tuesday. The company reported $4.21 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.99 by $0.22, FiscalAI reports. The firm had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. Royal Caribbean Cruises had a net margin of 24.36% and a return on equity of 45.25%. The business’s revenue was up 6.5% on a year-over-year basis. During the same period in the previous year, the firm earned $4.38 earnings per share. Royal Caribbean Cruises updated its FY 2026 guidance to 17.730-17.870 EPS and its Q3 2026 guidance to 6.260-6.360 EPS.

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

Second-quarter results exceeded expectations: Revenue increased 6% year over year, adjusted EPS was $4.21—$0.33 above guidance—and the company returned more than $600 million to shareholders through dividends and share repurchases.
Royal Caribbean raised or reaffirmed a strong 2026 outlook, expecting 6.6% capacity growth, approximately 9% revenue growth, 1.75%-2.25% net yield growth, and 14% adjusted EPS growth to $17.73-$17.87.
Demand remains robust: 2026 bookings are at record pricing, while early 2027 bookings are pacing ahead of historical levels at higher prices; onboard and pre-cruise spending also continues to exceed prior years.
The company highlighted strong balance-sheet and strategic momentum, including $1.9 billion of second-quarter operating cash flow, leverage below three times, growing loyalty enrollment, and more than 90% app adoption.
Prolonged Middle East geopolitical tensions have weighed on Mediterranean bookings and are expected to keep third-quarter yields roughly flat, while the Mahahual, Mexico destination project faces timeline delays due to continued community and government engagement.

Royal Caribbean Cruises Trading Up 0.6%

NYSE RCL opened at $324.51 on Wednesday. The company has a debt-to-equity ratio of 1.96, a quick ratio of 0.17 and a current ratio of 0.20. The company has a market capitalization of $87.03 billion, a price-to-earnings ratio of 19.30, a price-to-earnings-growth ratio of 1.08 and a beta of 1.76. The company’s 50-day simple moving average is $291.98 and its two-hundred day simple moving average is $289.39. Royal Caribbean Cruises has a one year low of $232.10 and a one year high of $366.50.

Royal Caribbean Cruises Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Thursday, July 2nd. Shareholders of record on Wednesday, June 3rd were issued a dividend of $1.50 per share. This represents a $6.00 annualized dividend and a yield of 1.8%. The ex-dividend date was Wednesday, June 3rd. Royal Caribbean Cruises’s dividend payout ratio is presently 36.61%.

Key Headlines Impacting Royal Caribbean Cruises

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

Positive Sentiment: Profit exceeded expectations: Royal Caribbean reported adjusted EPS of $4.21, above analysts’ roughly $3.99 estimate, while revenue of $4.83 billion was broadly in line with forecasts and increased approximately 6.5% year over year. Strong close-in demand, cost efficiencies and joint-venture performance supported the earnings beat. Royal Caribbean Group Reports Second Quarter Results Above Expectations and Raises Full Year Guidance
Positive Sentiment: Higher bottom-line outlook: The company raised its full-year 2026 adjusted EPS guidance to $17.73-$17.87, above the prior outlook and consensus near $17.32. Third-quarter EPS guidance of $6.26-$6.36 was close to expectations, reinforcing the view that pricing, demand and cost control remain favorable. Royal Caribbean Raises Full-Year Guidance
Positive Sentiment: Capital returns and bookings remain supportive: Royal Caribbean has continued substantial share repurchases, totaling roughly $1.19 billion since late 2025, and investors cited record booking prices and volumes as evidence of resilient cruise demand. Royal Caribbean Not Priced for Perfecta
Neutral Sentiment: Revenue outlook trimmed: Royal Caribbean reduced its 2026 revenue-growth forecast from 10% to approximately 9% and narrowed reported net-yield guidance, while maintaining its constant-currency outlook. The revision reflects uncertainty rather than a major deterioration in underlying demand. Royal Caribbean Q2 Wavy Geopolitics Creates Bumpy Cruise Outlook
Negative Sentiment: Geopolitical and cost risks remain: Prolonged geopolitical uncertainty has pressured bookings, while higher fuel costs and Royal Caribbean’s roughly $23 billion debt load could weigh on results if travel demand weakens or disruptions intensify. Royal Caribbean Cuts Revenue Outlook as Bookings Remain Pressured

Analyst Ratings Changes

RCL has been the subject of a number of research analyst reports. Morgan Stanley decreased their price objective on shares of Royal Caribbean Cruises from $310.00 to $280.00 and set an “equal weight” rating for the company in a report on Tuesday, May 26th. TD Cowen dropped their target price on shares of Royal Caribbean Cruises from $350.00 to $337.00 and set a “buy” rating on the stock in a research note on Friday, May 15th. UBS Group reduced their target price on shares of Royal Caribbean Cruises from $321.00 to $309.00 and set a “buy” rating on the stock in a research report on Thursday, May 14th. Barclays decreased their price target on shares of Royal Caribbean Cruises from $351.00 to $340.00 and set an “overweight” rating for the company in a research note on Friday, May 1st. Finally, William Blair reissued an “outperform” rating on shares of Royal Caribbean Cruises in a research note on Tuesday. Two research analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and six have issued a Hold rating to the company’s stock. According to data from MarketBeat.com, Royal Caribbean Cruises currently has an average rating of “Moderate Buy” and an average target price of $346.40.

Read Our Latest Stock Analysis on Royal Caribbean Cruises

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of hedge funds and other institutional investors have recently modified their holdings of RCL. State Street Corp lifted its holdings in Royal Caribbean Cruises by 0.8% during the third quarter. State Street Corp now owns 10,576,751 shares of the company’s stock worth $3,433,052,000 after buying an additional 84,202 shares during the period. Northern Trust Corp raised its position in shares of Royal Caribbean Cruises by 2.7% in the 3rd quarter. Northern Trust Corp now owns 2,474,766 shares of the company’s stock worth $800,785,000 after acquiring an additional 65,714 shares in the last quarter. Dimensional Fund Advisors LP raised its position in shares of Royal Caribbean Cruises by 2.5% in the 4th quarter. Dimensional Fund Advisors LP now owns 1,918,296 shares of the company’s stock worth $535,079,000 after acquiring an additional 47,401 shares in the last quarter. Price T Rowe Associates Inc. MD lifted its stake in shares of Royal Caribbean Cruises by 0.9% during the 4th quarter. Price T Rowe Associates Inc. MD now owns 1,640,646 shares of the company’s stock worth $457,610,000 after purchasing an additional 15,285 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its stake in shares of Royal Caribbean Cruises by 1.1% during the 4th quarter. Charles Schwab Investment Management Inc. now owns 1,515,043 shares of the company’s stock worth $422,576,000 after purchasing an additional 16,417 shares during the last quarter. 87.53% of the stock is currently owned by institutional investors.

Royal Caribbean Cruises Company Profile

(Get Free Report)

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.