Royal Caribbean Lifts Full-Year Forecast After Posting Higher Quarterly Profit -- Update
Dow Jones2026/10/27 12:13By Rob Curran
Royal Caribbean Group's third-quarter profit rose on strong bookings, prompting it to lift its forecast for the year even as fuel prices rise.
The company now expects adjusted earnings of $17.85 to $17.95 a share, up from a prior estimate of $17.73 to $17.87 a share. On average, analysts are anticipating $17.79 a share for 2026 adjusted earnings, based on FactSet.
Royal Caribbean also reiterated a prior projection of 9% revenue growth in 2026.
Shares recently rose 4.7% to $293.83 in premarket trading Tuesday.
For the third quarter, the company posted a profit of $1.73 billion, or $6.45 a share, up from $1.58 billion, or $5.74 a share, a year earlier.
Stripping out one-time items, third-quarter adjusted earnings came in at $6.57 a share, surpassing the average analyst target of $6.38 a share, as per FactSet.
Revenue rose 9% to $5.59 billion, just shy of the average Wall Street estimate of $5.61 billion.
For the fourth quarter, Royal Caribbean is targeting adjusted earnings in a range between $3.48 and $3.58 a share. Analysts are currently expecting adjusted earnings of $3.65 for the quarter.
Cruise operators have lagged the broad market this year as the war in the Middle East has caused fuel prices to surge and hurt demand. Shares of rival Carnival have risen in the wake of the relatively strong earnings it had posted in September, however.
"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," Chief Executive and Chairman Jason Liberty said in a statement.
Royal Caribbean expects its acquisition of a 50% stake in the all-inclusive Sandals and Beaches Resorts chain to close in early 2027. The cruise line struck a deal last month for $3 billion to acquire a 50% stake in the resort as it looks to grow further in the global vacation market.
Write to Rob Curran at rob.curran@wsj.com
(END) Dow Jones Newswires
October 27, 2026 08:13 ET (12:13 GMT)
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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