Royal Bank of Canada filed a free writing prospectus on November 3, 2026, disclosing the preliminary terms of Capped Return Dual Directional Buffer Notes linked to the Nasdaq-100 Index, due November 29, 2028, with CUSIP 78018DQW0.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), filing under Registration Statement No. 333-275898 pursuant to Rule 433.
  • Underlier: The Nasdaq-100 Index (Bloomberg symbol "NDX"), with a Trade Date of November 24, 2026 and a Maturity Date of November 29, 2028.
  • Maximum Upside Return: At least 21%, to be determined on the Trade Date, with a 100% Participation Rate subject to that cap.
  • Buffer Percentage: 15%, meaning the Buffer Value is set at 85% of the Initial Underlier Value; losses only apply below that threshold.
  • Absolute Value Return: If the Nasdaq-100 declines but stays at or above the Buffer Value, investors receive a positive return equal to the absolute value of the Underlier Return, capped at 15%.
  • Initial Estimated Value: Expected to be between $905.00 and $955.00 per $1,000 principal amount, which the filing states "will be less than the public offering price of the Notes."
  • Principal at Risk: If the Final Underlier Value is less than the Buffer Value, investors lose 1% of principal for each 1% the index falls below the Initial Underlier Value in excess of the 15% buffer.

Structure and Payment Terms of RBC's Nasdaq-100 Buffer Notes

According to the filing, the Notes are structured around three distinct payoff scenarios at maturity, each determined by comparing the closing value of the Nasdaq-100 Index on the Valuation Date (November 24, 2028) to its closing value on the Trade Date (November 24, 2026). The filing designates these as the Final Underlier Value and the Initial Underlier Value, respectively. Per $1,000 principal amount, the payment formula differs based on which scenario applies.

If the index rises, the filing states investors receive $1,000 plus the lesser of the Underlier Return multiplied by the 100% Participation Rate or the Maximum Upside Return of at least 21%. If the index falls but remains at or above 85% of the Initial Underlier Value, investors receive $1,000 plus the absolute value of the negative Underlier Return, though the filing specifies "in no event will this return exceed 15%." If the index falls below the Buffer Value, the filing states that investors "will lose some or a substantial portion of your principal amount at maturity," calculated as $1,000 plus the sum of the Underlier Return and the 15% Buffer Percentage.

The filing notes the Notes do not pay interest and that payments are subject to the credit risk of Royal Bank of Canada. It also discloses that the initial estimated value is only an estimate as of the Trade Date and that there may not be an active secondary trading market for the Notes. The filing directs prospective investors to the accompanying preliminary pricing supplement available at the SEC's EDGAR system for complete terms and risk factors.

What Was Disclosed

Royal Bank of Canada filed preliminary terms for structured notes linked to the Nasdaq-100 Index, due November 29, 2028, with a 15% downside buffer, a capped upside of at least 21%, and an estimated initial value of $905.00 to $955.00 per $1,000 principal amount.