Royal Bank of Canada filed a free writing prospectus (FWP) on November 3, 2026, disclosing the terms of Capped Enhanced Return Buffer Notes linked to the S&P 500 Index, with a maturity date of November 29, 2028.

Key Highlights

  • Issuer: Royal Bank of Canada ("RBC"), CUSIP 78018DQD2, filed under Registration Statement No. 333-275898.
  • Participation Rate: 125% of the Underlier Return on the upside, subject to a Maximum Return of at least 20% (to be determined on the Trade Date of November 24, 2026).
  • Buffer Protection: A 10% Buffer Percentage applies; the Buffer Value is set at 90% of the Initial Underlier Value.
  • Principal at Risk: If the Final Underlier Value falls below the Buffer Value, investors lose 1% of principal for each 1% the index declines beyond the 10% buffer.
  • Initial Estimated Value: Expected to be between $909.00 and $959.00 per $1,000 principal amount, less than the public offering price.
  • No Interest Payments: The Notes do not pay interest over their approximately two-year term.
  • Key Dates: Trade Date November 24, 2026; Issue Date November 30, 2026; Valuation Date November 24, 2028; Maturity Date November 29, 2028.

Structure and Payment Terms of RBC's S&P 500 Buffer Notes

According to the filing, Royal Bank of Canada is offering Capped Enhanced Return Buffer Notes linked to the S&P 500 Index (Bloomberg symbol "SPX"), due November 29, 2028. The Notes are structured so that at maturity, per $1,000 principal amount, investors receive payment based on one of three scenarios determined by comparing the Final Underlier Value to the Initial Underlier Value, which is the closing value of the S&P 500 on the Trade Date of November 24, 2026.

If the Final Underlier Value exceeds the Initial Underlier Value, the filing states investors receive $1,000 plus $1,000 multiplied by the lesser of (a) the Underlier Return times the 125% Participation Rate, or (b) the Maximum Return of at least 20%. If the Final Underlier Value is less than or equal to the Initial Underlier Value but at or above the Buffer Value of 90% of the Initial Underlier Value, investors receive $1,000 in principal. If the Final Underlier Value falls below the Buffer Value, the filing states investors receive $1,000 plus $1,000 multiplied by the sum of the Underlier Return and the Buffer Percentage, meaning losses begin beyond a 10% decline.

The filing notes that the initial estimated value of the Notes is expected to be between $909.00 and $959.00 per $1,000 principal amount and "will be less than the public offering price of the Notes." The filing further discloses that payments on the Notes are subject to RBC's credit risk, there may not be an active trading market for the Notes, and "the U.S. Federal Income Tax Consequences of an Investment in the Notes Are Uncertain." The Notes do not pay interest, and the filing cautions that investors "May Lose a Substantial Portion of the Principal Amount at Maturity."

What Was Disclosed

Royal Bank of Canada filed a free writing prospectus disclosing the key terms, payment structure, estimated value range, and selected risk considerations for Capped Enhanced Return Buffer Notes linked to the S&P 500 Index, maturing November 29, 2028, with a 10% buffer and 125% participation rate capped at a maximum return of at least 20%.