Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing terms for Capped Return Dual Directional Buffer Notes linked to the EURO STOXX 50 Index, due November 29, 2028.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), CUSIP 78018DQX8, filed under Registration Statement No. 333-275898.
  • Underlying index: The EURO STOXX 50 Index (Bloomberg symbol "SX5E"), with a Trade Date of November 24, 2026, and Maturity Date of November 29, 2028.
  • Maximum Upside Return: At least 27%, subject to a Participation Rate of 100%, with the final figure to be determined on the Trade Date.
  • Buffer Percentage: 15%, meaning the Buffer Value equals 85% of the Initial Underlier Value; losses apply only if the Final Underlier Value falls below that threshold.
  • Absolute Value Return cap: In the buffer zone, investors receive a positive return equal to the absolute value of the Underlier Return, but that return cannot exceed 15%.
  • Initial estimated value: Expected to be between $905.00 and $955.00 per $1,000 principal amount, and will be less than the public offering price, according to the filing.
  • No interest payments: The notes do not pay interest, and principal is at risk if the Final Underlier Value falls below the Buffer Value.

Structure and Payment Terms of the Royal Bank of Canada EURO STOXX 50 Buffer Notes

According to the filing, the notes offer three distinct payoff scenarios at maturity per $1,000 principal amount. If the Final Underlier Value is greater than the Initial Underlier Value, investors receive $1,000 plus the lesser of the Underlier Return (at 100% Participation Rate) or the Maximum Upside Return of at least 27%. The Maximum Upside Return will be set on the Trade Date of November 24, 2026, and the Valuation Date is November 24, 2028.

If the Final Underlier Value is less than or equal to the Initial Underlier Value but greater than or equal to the Buffer Value (85% of the Initial Underlier Value), the filing states that investors receive a one-for-one positive return equal to the absolute value of the Underlier Return, though this return is capped at 15% in that scenario. This feature is described in the filing as the "Absolute Value Return."

If the Final Underlier Value falls below the Buffer Value, the filing states that investors "will lose 1% of the principal amount of their Notes for each 1% that the Final Underlier Value is less than the Initial Underlier Value in excess of the Buffer Percentage," and that investors could lose "some or a substantial portion" of their principal. The filing also discloses that the notes do not provide direct exposure to fluctuations in exchange rates between the U.S. dollar and the Euro, and that payments are subject to Royal Bank of Canada's credit risk. The filing notes that U.S. federal income tax consequences of an investment in the notes are uncertain.

What Was Disclosed

Royal Bank of Canada disclosed the key terms, payment structure, and risk considerations for structured notes linked to the EURO STOXX 50 Index, with a 15% buffer, a capped upside of at least 27%, and an initial estimated value of $905.00 to $955.00 per $1,000 principal amount.