Royal Caribbean Group Beats Second-Quarter Forecasts, Raises Full-Year Outlook
Royal Caribbean Group has reported second-quarter 2026 results ahead of its own guidance, prompting the cruise operator to raise its full-year earnings outlook on the back of strong late-booking demand and lower costs.
The headline numbers
The company posted second-quarter earnings per share of $4.20, with adjusted EPS of $4.21, beating the market's expectations. Total revenue for the quarter reached $4.8 billion, up 6% year on year, while net income rose 9% to $1.1 billion. Adjusted EBITDA came in at roughly $1.8 billion, a slight dip from the same quarter last year despite the revenue growth, reflecting higher costs across the business.
Royal Caribbean carried 2.4 million guests during the quarter, a 6% increase on 2025, at a load factor of 110%. Net Yields rose 1.9% as-reported and 1.2% in constant currency, with the growth outpacing the company's own guidance thanks to better-than-expected close-in bookings — the industry term for reservations made shortly before a cruise departs.
Guidance raised for the year ahead
Off the back of the stronger quarter, Royal Caribbean lifted its full-year adjusted EPS guidance to a range of $17.73 to $17.87, up from its previous outlook and above the analyst consensus of roughly $17.51. The revised figure implies close to 14% earnings growth for the year. The company also said it now expects full-year revenue to grow around 9%, with Net Yields rising as much as 2.85% as-reported.
Jason Liberty, Chairman and CEO of Royal Caribbean Group, attributed the results to sustained brand strength and business momentum, saying the quarter reflected the continued appeal of the company's vacation experiences.
The guidance revision wasn't entirely unclouded, however. The company noted it is factoring in a modest booking impact on select itineraries tied to ongoing geopolitical disruption, without naming the specific routes affected.
New ships and fleet growth
The quarter included a notable fleet milestone: Royal Caribbean took delivery of Legend of the Seas, the third vessel in its Icon class, having debuted the ship earlier in July. In April, the company also placed orders for two further Icon-class ships — Icon VI and Icon VII — with financing already committed.
Looking further ahead, Royal Caribbean expects capacity to grow 6.6% in 2026 compared with 2025, followed by increases of 4%, 6% and 7% in 2027, 2028 and 2029 respectively, though the company notes these figures exclude any future ship sales or additions it may decide on. Full-year capital expenditure is expected to total approximately $4.7 billion, predominantly tied to the newbuild order book and land-based destination projects such as the group's private island developments.
Market reaction
Shares in Royal Caribbean Group (NYSE: RCL) rose more than 4% in the hours following the announcement, with the stock trading within its 52-week range of $232.10 to $366.50. The earnings beat of around 7% against consensus, combined with management's commentary on 2027 bookings running ahead of historical levels at record prices, appeared to reassure investors, even as some caution remained over the geopolitical booking impact flagged in the outlook.
Royal Caribbean Group operates the Royal Caribbean International, Celebrity Cruises and Silversea Cruises brands, and holds a stake in TUI Cruises and Hapag-Lloyd Cruises.
Sources:
SEC 8-K filing:
https://www.sec.gov/Archives/edgar/data/0000884887/000088488726000036/a2026q2earningsrelease.htm
PR Newswire: