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The Zacks Consensus Estimate for RCL’s second-quarter earnings per share (EPS) is pegged at $4.10, suggesting 27.7% growth from the $3.21 reported in the prior-year quarter. The consensus mark has increased 1.5% in the past 60 days.
RCL Earnings Estimate Trend
Image Source: Zacks Investment Research
The consensus mark for second-quarter revenues is pegged at $4.55 billion, indicating growth of 10.7% from the year-ago quarter’s reported figure. The company has an impressive earnings surprise history. RCL’s earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.7%.
RCL Earnings Surprise History
Image Source: Zacks Investment Research
Q2 Earnings Whispers for RCL Stock
Our proven model predicts a likely earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Royal Caribbean’s second-quarter performance is expected to have reflected continued strength in close-in demand, strong pricing across key itineraries and growing onboard revenue contributions. The company’s strategic focus on fleet modernization, high-yield markets and loyalty-driven engagement is likely to have supported overall operational performance in the to-be-reported quarter.
Deployment concentration in the Caribbean likely played a pivotal role in shaping the second-quarter revenue trajectory. With sailings from nine U.S. home ports, including Miami, Port Canaveral, Galveston and Baltimore, Royal Caribbean’s market access and itinerary diversity may have driven volume and pricing power. Exclusive destinations such as Perfect Day at CocoCay likely continued to support premium onboard spend and guest satisfaction metrics.
The introduction and ramp-up of newer vessels such as Icon of the Seas and Utopia of the Seas likely contributed positively to yields. These high-occupancy, feature-rich ships offer enhanced onboard experiences, including new entertainment formats, dining concepts and multigenerational cabins, which may have attracted high-value guests and supported premium pricing. The company expects yield growth of 4.3% to 4.8% year over year in the second quarter, with approximately half the increase attributable to new hardware and the remainder to like-for-like pricing gains and higher load factors. Our model predicts second-quarter net yields at $282.3 million (on a reported basis).
Higher spend per passenger on ticket and onboard categories, as well as increased pre-cruise purchases, are likely to have supported RCL’s second-quarter revenue expansion. Enhanced app-based engagement and cross-brand loyalty integration likely reinforced spend behaviour. Our model predicts second-quarter passenger ticket revenues to rise 11.1% year over year to $3.2 billion. We expect onboard and other revenues to increase 6.9% year over year to $1.3 billion.
Margins
Royal Caribbean’s second-quarter margins are expected to have been bolstered by scale efficiencies, strong pricing discipline and effective cost management. Favorable fuel costs and hedging — covering 59% of 2025 consumption at below-market rates — likely served as a tailwind for operating margins in the quarter. Our model predicts second-quarter operating margins to expand 150 basis points year over year to 28.2%.
Net cruise costs excluding fuel are expected to increase 3.7% to 4.2% year over year, primarily due to the timing of dry dock activity, new ship ramp-up costs and earlier expense deferrals from the first quarter. Despite the temporary pressure, the company guides full-year cost growth between negative 0.1% and positive 0.9%, reflecting its ongoing focus on cost discipline and margin enhancement.
EBITDA margins likely remained strong, supported by a mix shift toward premium products and high-spending customer segments. However, transitional inefficiencies from new hardware delivery and elevated port-related expenses may have weighed modestly on profitability during the quarter. The company forecasts second-quarter adjusted EPS to be in the range of $4.00 to $4.10.
RCL Stock Price Performance & Valuation
Royal Caribbean shares have surged 61.5% in the past three months, outperforming the Zacks Leisure and Recreation Services industry’s rise of 29.7%. The cruise stock has also outperformed the S&P 500’s gain of 15.2%. The company’s peers, Carnival Corporation & plc (CCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) , have gained 57.9%, 34.7% and 28.3%, respectively, in the same period.
RCL Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, Royal Caribbean stock is currently trading at a premium. RCL is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 20.76X, above the industry average of 20.20X. Other industry players, such as Carnival, Norwegian Cruise and OneSpaWorld, have P/E ratios of 13.87X, 10.58X and 20.92X, respectively.
Image Source: Zacks Investment Research
Investment Considerations for RCL Stock
Royal Caribbean is focused on capturing a larger share of the $2 trillion global vacation market through strategic fleet expansion, premium onboard offerings and deepening customer engagement. The company’s diversified deployment strategy — centered on high-demand regions like the Caribbean, Europe and Alaska — combined with the appeal of new ships such as Icon of the Seas and Utopia of the Seas, is expected to support continued yield growth. A tech-enabled loyalty ecosystem, growing cross-brand participation and strong onboard spending trends reinforce customer retention and revenue per guest. Ongoing investment in exclusive destinations, including the upcoming Royal Beach Club in Nassau and a disciplined cost management approach position the company for long-term earnings expansion and margin resilience.
However, Royal Caribbean faces challenges tied to elevated drydock activity, pre-opening expenses for new ships and ramp-up costs associated with strategic investments in private destinations. Macroeconomic uncertainties, including fluctuations in consumer confidence and FX volatility, may impact future booking trends and pricing. Although the company has reiterated its focus on maintaining price integrity and managing costs effectively, any slowdown in discretionary travel spending or intensified competitive pricing in the cruise sector could weigh on margins.
How to Play Royal Caribbean Stock Now?
Despite a sharp 61.5% surge in the past three months, Royal Caribbean still merits a hold rating heading into its second-quarter 2025 earnings release. While management has guided for continued yield growth and strong onboard spending trends, near-term margin expansion could face headwinds from elevated dry dock activity, new ship ramp-up costs and FX-related volatility. Nonetheless, robust close-in demand, disciplined pricing and strategic deployment in high-performing regions like the Caribbean and Europe provide strong visibility into the back half of 2025.
The company’s growing loyalty base, premium ship additions like Icon and Utopia of the Seas and expanded destination portfolio reinforce its long-term competitive positioning. Royal Caribbean’s consistent focus on price integrity, coupled with a favorable cost structure and investment-grade balance sheet, supports earnings quality amid macro uncertainty. Although the stock currently trades at a premium to peers, its fundamentals remain intact. With the potential for continued momentum — but limited near-term upside following its steep run — holding RCL stock appears appropriate as investors await confirmation from second-quarter results.
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Royal Caribbean to Report Q2 Earnings: Buy, Sell or Hold the Stock?
Key Takeaways
Royal Caribbean Cruises Ltd. (RCL - Free Report) is scheduled to release second-quarter 2025 results on July 29.
The Zacks Consensus Estimate for RCL’s second-quarter earnings per share (EPS) is pegged at $4.10, suggesting 27.7% growth from the $3.21 reported in the prior-year quarter. The consensus mark has increased 1.5% in the past 60 days.
RCL Earnings Estimate Trend
Image Source: Zacks Investment Research
The consensus mark for second-quarter revenues is pegged at $4.55 billion, indicating growth of 10.7% from the year-ago quarter’s reported figure.
The company has an impressive earnings surprise history. RCL’s earnings outpaced the Zacks Consensus Estimate in all the trailing four quarters, the average surprise being 8.7%.
RCL Earnings Surprise History
Image Source: Zacks Investment Research
Q2 Earnings Whispers for RCL Stock
Our proven model predicts a likely earnings beat for Royal Caribbean this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is exactly the case here. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter.
Royal Caribbean has an Earnings ESP of +0.72% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Shaping RCL’s Upcoming Results
Revenues
Royal Caribbean’s second-quarter performance is expected to have reflected continued strength in close-in demand, strong pricing across key itineraries and growing onboard revenue contributions. The company’s strategic focus on fleet modernization, high-yield markets and loyalty-driven engagement is likely to have supported overall operational performance in the to-be-reported quarter.
Deployment concentration in the Caribbean likely played a pivotal role in shaping the second-quarter revenue trajectory. With sailings from nine U.S. home ports, including Miami, Port Canaveral, Galveston and Baltimore, Royal Caribbean’s market access and itinerary diversity may have driven volume and pricing power. Exclusive destinations such as Perfect Day at CocoCay likely continued to support premium onboard spend and guest satisfaction metrics.
The introduction and ramp-up of newer vessels such as Icon of the Seas and Utopia of the Seas likely contributed positively to yields. These high-occupancy, feature-rich ships offer enhanced onboard experiences, including new entertainment formats, dining concepts and multigenerational cabins, which may have attracted high-value guests and supported premium pricing. The company expects yield growth of 4.3% to 4.8% year over year in the second quarter, with approximately half the increase attributable to new hardware and the remainder to like-for-like pricing gains and higher load factors. Our model predicts second-quarter net yields at $282.3 million (on a reported basis).
Higher spend per passenger on ticket and onboard categories, as well as increased pre-cruise purchases, are likely to have supported RCL’s second-quarter revenue expansion. Enhanced app-based engagement and cross-brand loyalty integration likely reinforced spend behaviour. Our model predicts second-quarter passenger ticket revenues to rise 11.1% year over year to $3.2 billion. We expect onboard and other revenues to increase 6.9% year over year to $1.3 billion.
Margins
Royal Caribbean’s second-quarter margins are expected to have been bolstered by scale efficiencies, strong pricing discipline and effective cost management. Favorable fuel costs and hedging — covering 59% of 2025 consumption at below-market rates — likely served as a tailwind for operating margins in the quarter. Our model predicts second-quarter operating margins to expand 150 basis points year over year to 28.2%.
Net cruise costs excluding fuel are expected to increase 3.7% to 4.2% year over year, primarily due to the timing of dry dock activity, new ship ramp-up costs and earlier expense deferrals from the first quarter. Despite the temporary pressure, the company guides full-year cost growth between negative 0.1% and positive 0.9%, reflecting its ongoing focus on cost discipline and margin enhancement.
EBITDA margins likely remained strong, supported by a mix shift toward premium products and high-spending customer segments. However, transitional inefficiencies from new hardware delivery and elevated port-related expenses may have weighed modestly on profitability during the quarter. The company forecasts second-quarter adjusted EPS to be in the range of $4.00 to $4.10.
RCL Stock Price Performance & Valuation
Royal Caribbean shares have surged 61.5% in the past three months, outperforming the Zacks Leisure and Recreation Services industry’s rise of 29.7%. The cruise stock has also outperformed the S&P 500’s gain of 15.2%. The company’s peers, Carnival Corporation & plc (CCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) , have gained 57.9%, 34.7% and 28.3%, respectively, in the same period.
RCL Three-Month Price Performance
Image Source: Zacks Investment Research
From a valuation perspective, Royal Caribbean stock is currently trading at a premium. RCL is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 20.76X, above the industry average of 20.20X. Other industry players, such as Carnival, Norwegian Cruise and OneSpaWorld, have P/E ratios of 13.87X, 10.58X and 20.92X, respectively.
Image Source: Zacks Investment Research
Investment Considerations for RCL Stock
Royal Caribbean is focused on capturing a larger share of the $2 trillion global vacation market through strategic fleet expansion, premium onboard offerings and deepening customer engagement. The company’s diversified deployment strategy — centered on high-demand regions like the Caribbean, Europe and Alaska — combined with the appeal of new ships such as Icon of the Seas and Utopia of the Seas, is expected to support continued yield growth. A tech-enabled loyalty ecosystem, growing cross-brand participation and strong onboard spending trends reinforce customer retention and revenue per guest. Ongoing investment in exclusive destinations, including the upcoming Royal Beach Club in Nassau and a disciplined cost management approach position the company for long-term earnings expansion and margin resilience.
However, Royal Caribbean faces challenges tied to elevated drydock activity, pre-opening expenses for new ships and ramp-up costs associated with strategic investments in private destinations. Macroeconomic uncertainties, including fluctuations in consumer confidence and FX volatility, may impact future booking trends and pricing. Although the company has reiterated its focus on maintaining price integrity and managing costs effectively, any slowdown in discretionary travel spending or intensified competitive pricing in the cruise sector could weigh on margins.
How to Play Royal Caribbean Stock Now?
Despite a sharp 61.5% surge in the past three months, Royal Caribbean still merits a hold rating heading into its second-quarter 2025 earnings release. While management has guided for continued yield growth and strong onboard spending trends, near-term margin expansion could face headwinds from elevated dry dock activity, new ship ramp-up costs and FX-related volatility. Nonetheless, robust close-in demand, disciplined pricing and strategic deployment in high-performing regions like the Caribbean and Europe provide strong visibility into the back half of 2025.
The company’s growing loyalty base, premium ship additions like Icon and Utopia of the Seas and expanded destination portfolio reinforce its long-term competitive positioning. Royal Caribbean’s consistent focus on price integrity, coupled with a favorable cost structure and investment-grade balance sheet, supports earnings quality amid macro uncertainty. Although the stock currently trades at a premium to peers, its fundamentals remain intact. With the potential for continued momentum — but limited near-term upside following its steep run — holding RCL stock appears appropriate as investors await confirmation from second-quarter results.