Royal Caribbean Group raises annual outlook following stronger quarterly results
Royal Caribbean Group reported higher revenue and earnings for the third quarter of 2026, exceeding its previous earnings guidance and raising its full-year financial outlook as demand for cruise vacations remained strong.
The company generated revenue of US$5.59 billion, an increase of 9% compared with the corresponding period of 2025. Net income attributable to Royal Caribbean Cruises Ltd. rose to US$1.73 billion from US$1.58 billion, while diluted earnings per share increased to US$6.45 from US$5.74.
Adjusted net income reached US$1.76 billion, compared with US$1.58 billion a year earlier, while adjusted earnings per share increased to US$6.57 from US$5.75. Adjusted EBITDA amounted to US$2.54 billion, compared with US$2.29 billion in the third quarter of 2025.
Royal Caribbean carried approximately 2.7 million passengers during the quarter, representing year-on-year growth of 9%, while available capacity increased by 8%. The company reported an occupancy rate of 112.4%, compared with 112.1% a year earlier.
Net Yields increased by 0.9% on a reported basis and 0.6% in constant currency, supported by stronger-than-expected booking demand close to departure dates in Europe and the Caribbean. Net Cruise Costs excluding fuel per available passenger cruise day declined by 1.9%, partly reflecting the timing of expenses that shifted into the fourth quarter.
Higher guidance and continued investment
Following the stronger-than-expected third-quarter performance, Royal Caribbean increased its full-year adjusted earnings per share guidance to between US$17.85 and US$17.95.
The company expects full-year revenue growth of approximately 9%, while Net Yields are forecast to increase by around 2.7% on a reported basis. The improved earnings outlook is partially offset by higher anticipated fuel costs and currency exchange rate movements.
For the fourth quarter, Royal Caribbean expects adjusted earnings per share of US$3.48 to US$3.58, with revenue projected to increase by 9% compared with the corresponding period of 2025.
Booking activity for 2027 has also strengthened, with reservations for next year’s sailings increasing at a high-teens rate since the previous earnings call. The company said bookings for 2027 were progressing ahead of historical levels at higher rates.
Royal Caribbean expects capital expenditure of approximately US$4.6 billion in 2026, primarily associated with its newbuild cruise ship programme and land-based destination developments. The group forecasts capacity growth of 6.6% for 2026, followed by approximately 4.5% in 2027 and 6.0% in 2028.
The company also highlighted its previously announced agreement to acquire a 50% interest in Sandals and Beaches Resorts, which is expected to close in early 2027, subject to regulatory approvals and other customary conditions.
Royal Caribbean Group Chairman and Chief Executive Officer Jason Liberty said the quarterly performance reflected continued consumer demand across the group’s brands. He also noted that the company remains on track to achieve its Perfecta financial targets for 2027, based on its current assumptions.
As of 30 September 2026, Royal Caribbean reported available liquidity of US$7.4 billion, including cash and undrawn revolving credit facilities.
