Royal Caribbean Cruises Ltd.: Mixed — EPS $6.57, Revenue $5.59B
Mixed ResultQ3 2026 · Pre-market
Did Royal Caribbean Cruises Ltd. (RCL) beat earnings today?
It was a mixed report for Q3 2026 — Royal Caribbean Cruises Ltd. (RCL) beat on EPS but missed on revenue.
Earnings Per Share+2.98% surprise
$6.57Actual
Expected: $6.38
vs. year ago +14.3%
Total Revenue-0.34% surprise
$5.59BActual
Expected: $5.61B
vs. year ago +9.0%
Released Oct 27 · 6:30 AM ET
Earning Report
| Metric | Q3 2026 | Q3 2025 | YoY Change % |
|---|---|---|---|
| Revenue | $5.59B | $5.14B | +9.0% |
| Revenue detail — reported lines | |||
| └─Passenger ticket revenues | $3.88B | $3.64B | +6.8% |
| └─Onboard and other revenues | $1.71B | $1.50B | +13.6% |
| Net Income | $1.74B | $1.58B | +9.9% |
| GAAP Basic EPS | $6.46 | $5.79 | +11.6% |
| GAAP Diluted EPS | $6.45 | $5.74 | +12.4% |
| Adjusted Diluted EPS | $6.57 | $5.75 | +14.3% |
Financial Outlook / Guidance
| Metric | Q4 2026 Outlook | FY 2026 Outlook |
|---|---|---|
| Fuel Consumption | 463,000 metric tons | 1,763,000 metric tons |
| Fuel Expenses | $379M | $1,345M |
| Percent Hedged | 58.0% | — |
| Net Yields vs. 2025 | 4.4%-4.9% | ~2.7% |
| Net Yields vs. 2025 (Constant Currency) | 4.2%-4.7% | ~2.1% |
| Net Cruise Costs per APCD vs. 2025 | 1.9%-2.4% | ~1.8% |
| Net Cruise Costs per APCD vs. 2025 (Constant Currency) | 2.0%-2.5% | ~1.5% |
| Net Cruise Costs per APCD ex. Fuel vs. 2025 | -1.5%--1.0% | ~0.4% |
| Net Cruise Costs per APCD ex. Fuel vs. 2025 (Constant Currency) | -1.4%--0.9% | ~Flat |
| APCDs | 14.7M | 56.8M |
| Capacity change vs. 2025 | 5.0% | 6.6% |
| Depreciation and amortization | $460M-$470M | $1,870M-$1,890M |
| Net Interest | $255M-$265M | $995M-$1,005M |
| Adjusted EPS | $3.48-$3.58 | $17.85-$17.95 |
| Capital expenditures | — | ~$4.6B |
| Non-new ship capital expenditures | — | $1.5B |
Business Highlights
- ➤Announced agreement to acquire a 50% interest in Sandals and Beaches Resorts.
- ➤Sandals and Beaches portfolio includes 18 Caribbean resorts and three resorts under development.
- ➤Portfolio includes more than 1,000 acres of undeveloped Caribbean land.
- ➤Partnership preserves the brands’ identity, operating leadership, and Caribbean character.
- ➤Investment is expected to close in early 2027, subject to approvals.
- ➤Sandals and Beaches results will be reported under the equity method on a one-quarter lag.
- ➤Booking volumes increased in the mid-teens across all major channels.
- ➤Bookings for 2027 sailings were up in the high teens.
- ➤Royal Caribbean Group will enter river cruising in 2027 with Celebrity River Cruises.
- ➤Company operates 71 ships across three wholly owned brands and a TUI Cruises joint venture.
- ➤Named to Fortune World’s Most Admired Companies 2026 and Forbes’ Best American Companies lists.
- ➤Issued $1.25B of 5.550% senior unsecured notes due 2034.
Management Commentary
Jason Liberty, Chairman and CEO, Royal Caribbean Group
“Our third quarter results reflect continued strong consumer demand for our vacation experiences and the accelerated momentum across our industry leading brands. Our strategy to turn the vacation of a lifetime into a lifetime of vacations is propelling our business by leveraging our leading brands, differentiated experiences, loyalty platform and technology capabilities to deepen guest relationships, increase vacation frequency and capture a greater share of the growing global vacation market. Taking further advantage of our leading vacation platform, the recently announced partnership with Sandals and Beaches Resorts is intended to drive significant shareholder value as we expand our vacation ecosystem, giving guests more ways to vacation with us across more occasions.”
Jason Liberty, Chairman and CEO, Royal Caribbean Group
“Demand for our leading vacation experiences remains strong, and while it is still early, 2027 bookings are pacing ahead of historical levels at higher rates. 2027 also marks the final year of our Perfecta target period. The underlying business is performing well ahead of our initial expectations, and based on the forward fuel curve, we remain on track to achieve our Perfecta goals of delivering 20% Adjusted EPS CAGR from 2024 through 2027, or a $20-handle in 2027. We are currently already above our ROIC target.”
Jason Liberty, Chairman and CEO, Royal Caribbean Group
“Our mission is to deliver the best vacation experiences responsibly. Sandals and Beaches Resorts extend our platform into an attractive adjacent category, unlocking more ways to deliver on that mission.”
Jason Liberty, Chairman and CEO, Royal Caribbean Group
“Underpinned by the strength and significant growth opportunities of our core business, this investment accelerates our strategy to capture a greater share of the rapidly growing vacation market. By bringing together Sandals and Beaches' hospitality and Caribbean expertise with our global commercial reach, loyalty and technology capabilities, we see meaningful opportunities to reach new guests, increase vacation frequency, and leverage our combined scale to create additional synergies and value over time.”