Royal Caribbean Cruises (NYSE:RCL) Posts Quarterly Earnings Results, Beats Expectations By $0.23 EPS

Royal Caribbean Cruises (NYSE:RCL) announced its earnings results on Tuesday. The company reported $4.21 earnings per share for the quarter, beating analysts’ consensus estimates of $3.98 by $0.23, FiscalAI reports. Royal Caribbean Cruises had a return on equity of 43.33% and a net margin of 23.54%.The company had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. During the same period last year, the company posted $4.38 earnings per share. The firm’s quarterly revenue was up 6.5% compared to the same quarter last year. 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 Down 0.6%

NYSE RCL traded down $1.96 on Thursday, reaching $321.62. The company had a trading volume of 1,027,062 shares, compared to its average volume of 2,643,950. Royal Caribbean Cruises has a 52 week low of $232.10 and a 52 week high of $366.50. The stock’s 50 day moving average is $293.37 and its 200-day moving average is $289.53. The company has a quick ratio of 0.17, a current ratio of 0.21 and a debt-to-equity ratio of 2.03. The stock has a market cap of $86.26 billion, a price-to-earnings ratio of 19.90, a PEG ratio of 1.11 and a beta of 1.76.

Royal Caribbean Cruises Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Thursday, July 2nd. Investors of record on Wednesday, June 3rd were issued a $1.50 dividend. This represents a $6.00 dividend on an annualized basis and a yield of 1.9%. The ex-dividend date was Wednesday, June 3rd. Royal Caribbean Cruises’s dividend payout ratio is currently 36.61%.

Royal Caribbean Cruises News Roundup

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

• Positive Sentiment: Raised earnings outlook and strong demand: Royal Caribbean reported adjusted second-quarter EPS of $4.21, above the $3.98 consensus, on revenue of approximately $4.83 billion. Management forecast 2026 adjusted EPS of $17.73-$17.87 and cited strong close-in demand, record booking prices and cost efficiencies. Royal Caribbean lifts full-year EPS forecast on strong demand
• Positive Sentiment: Capital returns and long-term growth support the bull case: The company has accelerated share repurchases, with roughly $1 billion or more in buybacks during the first half of 2026. Fleet expansion, private destinations, premium pricing and planned river-cruise growth could support earnings and cash flow through 2028. Royal Caribbean growth drivers investors should watch through 2028
• Neutral Sentiment: Analyst stance is cautious despite a higher target: Morgan Stanley raised its price target from $280 to $300 but maintained an “equal weight” rating, implying limited upside relative to the current valuation. Benzinga
• Negative Sentiment: Revenue guidance and booking risks weigh on sentiment: Royal Caribbean reduced its 2026 revenue-growth forecast from 10% to about 9% and narrowed reported net-yield guidance to 1.75%-2.25%. Geopolitical tensions, weaker European itineraries and itinerary adjustments have moderated bookings. Investors also remain focused on higher fuel costs, roughly $23 billion of debt and the stock’s premium valuation. Royal Caribbean Q2: Wavy Geopolitics Creates Bumpy Cruise Outlook

Hedge Funds Weigh In On Royal Caribbean Cruises

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

Analysts Set New Price Targets

Several brokerages have recently issued reports on RCL. Susquehanna upped their price target on Royal Caribbean Cruises from $350.00 to $372.00 and gave the company a “positive” rating in a research note on Wednesday. Loop Capital assumed coverage on Royal Caribbean Cruises in a report on Monday, June 1st. They set a “hold” rating and a $304.00 price objective for the company. Morgan Stanley upped their target price on shares of Royal Caribbean Cruises from $280.00 to $300.00 and gave the company an “equal weight” rating in a research report on Thursday. BMO Capital Markets assumed coverage on shares of Royal Caribbean Cruises in a research note on Tuesday, July 7th. They issued an “outperform” rating and a $370.00 target price on the stock. Finally, Deutsche Bank Aktiengesellschaft set a $296.00 price target on shares of Royal Caribbean Cruises in a research report on Friday, May 1st. Two research analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and six have given a Hold rating to the company’s stock. Based on data from MarketBeat, Royal Caribbean Cruises presently has an average rating of “Moderate Buy” and a consensus price target of $350.50.

Royal Caribbean Cruises Company Profile

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.