Key Highlights

  • RCL shares are trading up 5.57% to $296.24, against a prior close of $280.60.
  • Adjusted EPS of $6.57 topped the roughly $6.38 consensus, while Revenue was in line at $5.6 billion.
  • Full-year 2026 adjusted EPS guidance rose to $17.85 to $17.95, up 14% from last year.
  • Booking volumes are up in the mid-teens, with 2027 sailings up in the high teens.
  • The company is buying a 50% stake in Sandals and Beaches Resorts for about $3 billion.

Beat and Raise Drives a Sharp Rally

Royal Caribbean Cruises (NYSE:RCL) shares are trading up 5.57% to $296.24 on heavy volume, roughly 1.7 times average, after the company reported a third-quarter beat and raised its 2026 outlook. Adjusted EPS of $6.57 topped the roughly $6.38 consensus, and management said 2027 bookings are pacing ahead of historical levels at higher rates. Carnival (NYSE:CCL) and Norwegian (NYSE:NCLH) also rose, though by less.

The rally eases worries after a roughly 26% slide since early August tied to the Sandals deal and Caribbean pricing concerns. Shares opened at $300.00 and traded between $295.26 and $308.45.

Royal Caribbean, a Miami-based global cruise and vacation company founded in 1968, is the world's second-largest cruise operator by fleet. It owns Royal Caribbean International, Celebrity Cruises and Silversea, and holds a 50% joint venture in TUI Cruises. Its roughly 70-ship fleet visits more than 1,000 destinations on all seven continents.

Third-Quarter Results Beat Guidance

Third-quarter revenue grew 9% with net yields up 0.6%, about 60 basis points above guidance, on stronger close-in Demand in Europe and the Caribbean and strong onboard revenue. Adjusted EBITDA was $2.5 billion at a 45% margin, and adjusted EPS was 26 cents above guidance.

Higher 2026 Outlook Comes With Fourth-Quarter Caveats

For 2026, net yields are expected up about 2.1% and capacity up 6.6%, with fuel expense of about $1.35 billion. Fourth-quarter guidance calls for adjusted EPS of $3.48 to $3.58, below consensus, as expense timing shifts into the quarter and fuel costs rise. Fourth-quarter capacity is expected up 5% and net yields up 4.2% to 4.7%.

2027 Bookings and the Sandals Deal Shape the Outlook

For 2027, capacity is expected to grow 4.5%, with Yield growth weighted to the second half. The company remains on track for its 20% adjusted EPS CAGR target, implying roughly $20 in 2027 on the current fuel curve, excluding Sandals, Buybacks and refinancings.

Royal Caribbean is buying a 50% stake in Sandals and Beaches Resorts for about $3 billion, at 10 times forward EBITDA, with closing expected in early 2027. Leverage ended the quarter below 3x with $7.4 billion of liquidity. The company has a market cap of $79.23 billion, EPS of $16.53 and a Dividend Yield of 1.86%.