Highlights

  • Third quarter 2026 net income was $1.7 billion, or $6.45 per share, and Adjusted EPS was $6.57.
  • Gross Margin Yields decreased 0.8% as-reported, while Net Yields increased 0.9% as-reported and 0.6% in Constant Currency.
  • The company expects full year 2026 Adjusted EPS of $17.85 to $17.95 and fourth quarter Adjusted EPS of $3.48 to $3.58.
  • In September it announced an agreement to acquire a 50% interest in Sandals and Beaches Resorts, expected to close in early 2027.

Royal Caribbean Group (NYSE: RCL) shares were trading at USD 303.83 on October 27, 2026, up 8.28%, with a relative volume at time of 4.45. The vacation company announced in September an agreement to acquire a 50% interest in Sandals and Beaches Resorts, entered a $400 million delayed-draw term loan in October, and on October 27 reported third quarter 2026 results and raised its full year guidance.

Royal Caribbean Group is incorporated in the Republic of Liberia and has its principal executive offices at 1050 Caribbean Way, Miami, Florida. The company describes itself as a global vacation company spanning cruise, exclusive destinations and land-based vacation experiences. It operates 71 ships sailing to more than 1,000 destinations across all seven continents through three wholly owned brands, Royal Caribbean, Celebrity Cruises and Silversea, and holds a 50% joint venture interest in TUI Cruises, which operates the Mein Schiff and Hapag-Lloyd brands.

Third Quarter 2026 Results

Net income for the third quarter was $1.7 billion, or $6.45 per share, compared with $1.6 billion, or $5.74 per share, in the same period of the prior year. Adjusted Net Income, a non-GAAP measure, was $1.8 billion, or $6.57 per share, compared with $1.6 billion, or $5.75 per share. Adjusted EBITDA was $2.5 billion.

Total revenue was $5.6 billion, a 9% increase year over year, and load factor was 112%. Capacity was up 8% year over year, and the company carried 2.7 million guests, a 9% increase. Gross Margin Yields decreased 0.8% as-reported. Net Yields increased 0.9% as-reported and 0.6% in Constant Currency, which the company attributed to close-in demand in Europe and the Caribbean.

Gross Cruise Costs per APCD decreased 0.7% as-reported. Net Cruise Costs, excluding Fuel, per APCD decreased 1.9% as-reported and 1.8% in Constant Currency. The company said the decrease reflected the timing of expenses that shifted into the fourth quarter.

Liquidity, Debt and Capital Spending

As of September 30, 2026, liquidity was $7.4 billion, which includes cash and cash equivalents and undrawn revolving credit facility capacity. During the quarter, the company issued $1.25 billion of 5.550% senior unsecured notes due 2034 and used the proceeds to repay a portion of its floating-rate term loan facilities and debt maturing in 2027. In October, it entered into the $400 million delayed-draw term loan with Export Development Canada and increased its revolving credit facility by $50 million, for total capacity of $6.65 billion.

Scheduled debt maturities for 2026, 2027, 2028, 2029 and 2030 were $0.6 billion, $2.4 billion, $3.2 billion, $1.1 billion and $1.1 billion. Full year 2026 capital expenditures are expected to be approximately $4.6 billion.

Sandals and Beaches Resorts Partnership

The agreement covers a 50% interest in a portfolio of 18 resorts across the Caribbean, three resorts under development and over 1,000 acres of undeveloped land. The investment is expected to close in early 2027, subject to customary closing conditions and regulatory approvals. The company expects to account for it under the equity method, with results reported on a one-quarter lag. Contribution in 2027 depends on the timing of the close.

Outlook

For full year 2026, the company expects revenue to grow 9% and Net Yields to increase approximately 2.7% as-reported and approximately 2.1% in Constant Currency. It expects Adjusted EPS of $17.85 to $17.95. The company said the guidance reflects higher fuel costs based on current at-the-pump rates and currency exchange rates.

For the fourth quarter, it expects Net Yields of 4.4% to 4.9% as-reported, Adjusted EPS of $3.48 to $3.58 and fuel expense of $379 million. Management said 2027 bookings are pacing ahead of historical levels at higher rates and that it remains on track for its Perfecta goal of 20% Adjusted EPS CAGR from 2024 through 2027.