Royal Caribbean Raises 2026 Profit Outlook as Quarterly Revenue Grows 9%

Royal Caribbean Group raised its full-year earnings forecast on Tuesday, October 27, after a stronger third quarter in which higher passenger volumes helped lift revenue even as fuel prices remained a concern.

The Miami-based cruise operator reported $5.6 billion in third-quarter revenue, an increase of 9% from a year earlier. Net income reached about $1.7 billion, up from roughly $1.6 billion in the comparable period of 2025. Adjusted earnings were $6.57 per share, above the $6.38 consensus estimate cited by independent financial reporting, while revenue was slightly below analysts' expectations of $5.61 billion.

Management now expects adjusted earnings per share of $17.85 to $17.95 for 2026, compared with its previous forecast of $17.73 to $17.87. The company said the upgrade reflects better-than-expected quarterly performance, partly offset by higher fuel costs and currency movements. The outlook is an adjusted financial measure and is not a guarantee of reported earnings.

Royal Caribbean carried 2.7 million guests during the quarter, 9% more than a year earlier, while passenger capacity expanded by 8%. Its reported load factor reached 112%, a cruise-industry measure of occupancy based on lower-berth capacity that can exceed 100% when cabins accommodate additional guests. Net yields, which track revenue relative to passenger capacity, rose 0.9% on a reported basis and 0.6% in constant currency.

Some of the earnings improvement came from the timing of operating costs that have shifted into the fourth quarter, rather than from a permanent reduction in expenses. For the final three months of 2026, the company expects adjusted earnings of $3.48 to $3.58 per share.

The group also said bookings for 2027 cruises were running ahead of historical levels at higher rates. Its proposed acquisition of a 50% interest in Sandals and Beaches Resorts is expected to close in early 2027, subject to customary conditions and regulatory approvals. That investment has not yet closed.

The results offer a measure of the resilience of international leisure demand, but the company's revised forecast remains exposed to fuel prices, foreign-exchange fluctuations and the timing of operating expenses.