Royal Caribbean Q3 2026: Six Straight EPS Beats and a Raised Outlook
As seen on the 24/7 Wall St. homepage on October 27, 2026.
Cruise pricing power is holding into next year: 2027 sailings are booked in the high teens, pacing ahead of historical levels at higher rates. Management lifted full-year 2026 adjusted EPS guidance to $17.85 to $17.95 even with higher fuel costs and currency working against it, a sixth straight quarter of beating consensus EPS.
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Royal Caribbean's adjusted earnings per share of $6.57 for the third quarter of 2026 beat expectations, extending its streak of beating consensus EPS estimates to six consecutive quarters, a run that stretches back through varying demand environments and cost pressures.
Revenue of $5.59 billion grew 8.8% year over year, narrowly missing expectations. The gap was more than offset on the bottom line by stronger-than-anticipated close-in bookings across Europe and the Caribbean, which lifted net yields even as higher fuel costs and unfavorable currency worked against the quarter.
Management raised its full-year 2026 adjusted EPS guidance to a range of $17.85 to $17.95, absorbing those fuel and currency headwinds rather than passing the burden to the outlook. The raise comes with a clear line of sight to the company's Perfecta target of a $20 handle in 2027 adjusted EPS, reflecting a 20% adjusted EPS compound annual growth rate from 2024 through 2027.
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Sailings for 2027 are booked in the high teens, pacing ahead of historical levels at higher rates, which gives the raised guidance additional credibility. Pricing power is not fading as the calendar turns.
Royal Caribbean also announced a partnership with Sandals and Beaches Resorts, an agreement to acquire a 50% interest that is expected to close in early 2027 and be immediately accretive. Liberty framed it as an extension of the company's vacation ecosystem, pointing out that roughly 30% of Royal Caribbean guests also take all-inclusive vacations, creating a natural cross-selling opportunity.
Mentioned: RCL