Royal Caribbean Group (NYSE:RCL) shares spiked Tuesday after the cruise operator reported second-quarter 2026 results.
Adjusted EPS of $4.21 beat the $3.98 analyst estimate, while revenue rose 6% year over year to $4.832 billion, topping the $4.817 billion estimate.
Earnings And Margins
GAAP diluted EPS fell to $4.20 from $4.41 a year earlier. Adjusted EPS declined from $4.38. Net income attributable to Royal Caribbean decreased to $1.128 billion from $1.210 billion, while adjusted net income fell to $1.130 billion from $1.202 billion.
Passenger-ticket revenue increased to $3.344 billion from $3.199 billion. Onboard and other revenue rose to $1.488 billion from $1.339 billion.
Operating income declined to $1.307 billion from $1.329 billion. Adjusted EBITDA decreased 1% to $1.830 billion, while adjusted EBITDA margin contracted to 37.9% from 40.8%. Gross margin yields fell 5.6% as reported.
"We expect another year of approximately double-digit growth in revenue and earnings, driven by consumers’ preference for our leading brands and supported by our strong booked position, leading margin profile, and fortified balance sheet,” commented Jason Liberty, chairman and CEO.
Capacity, Demand And Costs
Capacity increased 5% year over year, and the company carried about 2.4 million guests, up 6%.
Passenger cruise days rose to 14.96 million from 14.28 million, while available passenger cruise days increased to 13.57 million from 12.94 million.
Load factor was 110.2%, compared with 110.3% a year earlier. Net yields increased 1.9% as reported and 1.2% in constant currency, exceeding company guidance because of stronger-than-expected close-in demand.
Gross cruise costs per available passenger cruise day increased 4.5%. Net cruise costs excluding fuel per available passenger cruise day rose 4.4% as reported and 3.9% in constant currency.
The company said better-than-expected cost performance primarily reflected favorable expense timing.
"While still very early, booking trends for 2027 are encouraging and pacing ahead of historical levels, including for itineraries where demand was impacted by geopolitical developments this year,” stated CFO Naftali Holtz.
Cash Flow And Shareholder Returns
Operating cash flow was $1.9 billion for the quarter. Cash and cash equivalents totaled $875 million at June 30, while total liquidity reached $6.9 billion.
Royal Caribbean returned more than $600 million to shareholders through $199 million of share repurchases and $404 million of dividends.
It had $805 million remaining under its repurchase authorization.
Bookings And Guidance
The company remained booked at record prices, with booking volumes above last year and robust load factors.
Royal Caribbean expects third-quarter adjusted EPS of $6.26-$6.36, compared with the $6.26 estimate.
It raised full-year adjusted EPS guidance to $17.73-$17.87 from $17.10-$17.50, above the $17.34 estimate.
The company now expects full-year revenue to grow 9%, down from its prior outlook of approximately 10%. Its implied sales guidance fell to $19.549 billion from $19.729 billion, below the $19.584 billion estimate.
Capacity is expected to increase 6.6%, while constant-currency net yields are projected to rise 1.75%-2.25%.
RCL Price Action: Royal Caribbean shares were up 4.6% at $319.57 on Tuesday, according to Benzinga Pro data.
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