Royal Caribbean reported third quarter 2026 results that exceeded internal and analyst expectations, fueled by strong close-in demand and record booking volumes. While total revenue reached $5.59 billion, slightly below the $5.61 billion consensus, adjusted EPS of $6.57 comfortably beat the $6.38 estimate. The company raised its full-year 2026 adjusted EPS guidance to a range of $17.85 to $17.95, citing continued momentum in pricing and a healthy booking environment for 2027.
Key Highlights
- Net Yields increased 0.9% as-reported, outperforming management's previous guidance for a flat quarter despite geopolitical headwinds in Europe.
- Load factors remained exceptionally high at 112%, supported by a 9% year-over-year increase in passengers carried to 2.7 million guests.
- Booking volumes have increased in the mid-teens since the last update, with 2027 sailings pacing ahead of historical levels at higher rates.
- Net Cruise Costs excluding fuel per APCD decreased 1.9% as-reported, primarily due to the timing of expenses shifting from the third to the fourth quarter.