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Royal Caribbean Stock Soars on Earnings Beat
28 Oct
Summary
- Royal Caribbean's Q3 adjusted earnings per share exceeded analyst expectations.
- The company raised its full-year earnings outlook to $17.85-$17.95.
- Shares rose 5.5% on October 27, 2026, outperforming the S&P 500.
Royal Caribbean (RCL) experienced a significant stock increase of 5.5% on Tuesday, October 27, 2026, outperforming the S&P 500's 0.6% gain. This surge followed the company's announcement of its third-quarter financial results and an optimistic revision of its full-year earnings forecast.
The cruise line reported adjusted earnings of $6.57 per share, surpassing the analyst consensus of $6.38, although revenue of $5.59 billion was slightly below the expected $5.61 billion. Management attributed the earnings beat to strong guest demand for bookings close to sailing and high onboard spending, particularly on Europe and Caribbean routes.
Furthermore, Royal Caribbean elevated its full-year 2026 adjusted earnings per share projection to $17.85-$17.95. This updated guidance aligns with earlier expectations from January, despite facing challenges such as fuel price fluctuations, exchange rate shifts, and geopolitical events. Booking volumes have also shown mid-teen percentage growth compared to the previous year.
In the broader market context, Royal Caribbean's stock rise was mirrored by its industry peers, with Carnival and Norwegian Cruise Line each gaining 3.3%. The stock's performance has been dynamic, closing at a 52-week low of $230.30 on September 23, 2026, but recovering significantly to gain 22.0% over the subsequent month.
Looking ahead, the company is scheduled to report its fourth-quarter results in early 2027, with management guiding for adjusted earnings per share between $3.48 and $3.58 for that period.