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Royal Caribbean Q1 Earnings & Revenues Beat Estimates, Stock Up
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Key Takeaways
RCL posted a Q1 2026 adjusted EPS of $3.60 on $4.45B in revenues, both above consensus.
RCL logged 108.5% occupancy and 3.6% net yield growth, fueled by close-in demand and onboard spend.
RCL guided Q2 adjusted EPS of $3.83-$3.93 and 2026 $17.10-$17.50, with near 10% revenue growth.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported first-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. Post the results, the cruise stock rose 6.3% in the pre-market trading session, primarily driven by strong 2026 guidance.
In the quarter under review, the company reported adjusted earnings per share (EPS) of $3.60, beating the Zacks Consensus Estimate of $3.20. In the year-ago quarter, RCL posted an adjusted EPS of $2.71.
Revenues in the quarter totaled $4.45 billion, beating the consensus mark of $4.44 billion. The metric increased 11.3% year over year.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Performance reflected continued strength in close-in demand and onboard spending. Occupancy was 108.5%, while the company reported net yield growth of 3.6% on an as-reported basis, reinforcing the quarter’s pricing-led momentum.
RCL Sustains Momentum With Record Booking Weeks
Royal Caribbean’s demand commentary remained constructive. Management cited a sharp acceleration in bookings following strong Cyber sales and a healthy start to the WAVE season, resulting in the seven strongest booking weeks in the company’s history. The strength was characterized as broad-based, signaling continued consumer preference for the company’s branded vacation offerings.
Operationally, the quarter also benefited from higher deployment and improved guest throughput. The company delivered memorable vacations to 2.5 million guests and increased capacity 8.9% year over year, reinforcing the durability of demand even as supply expands across key itineraries.
Royal Caribbean Gains Revenues From Tickets & Onboard Spend
The first-quarter top line advanced on strength across the two primary revenue streams. Passenger ticket revenues rose to $3,021 million from $2,744 million in the prior-year quarter, reflecting favorable pricing and strong load factors. That performance was supported by continued demand for the company’s core itineraries and product differentiation. Our model projected first-quarter passenger ticket revenues to be $3 billion.
Onboard and other revenues increased to $1,431 million from $1,255 million a year ago, highlighting continued traction in pre-cruise and onboard purchases. Management emphasized that spending trends remain healthy, supported by higher guest participation and pricing, with purchasing increasingly occurring through digital channels ahead of sailing. Our model projected the first quarter onboard & other revenues to be $1.4 billion.
Royal Caribbean Expands Profitability Versus Prior Year
In the first quarter, operating income increased 23.0% year over year to $1,162 million from $945 million, reflecting improved revenue capture in the period. Net income attributable to Royal Caribbean rose 28.9% to $941 million from $730 million reported in the prior-year quarter.
On an adjusted basis, net income attributable to Royal Caribbean increased 31% to $975 million from $744 million a year earlier. Adjusted EBITDA rose 21.4% to $1,702 million from $1,402 million, and adjusted EBITDA margin improved to 38.2% from 35.1%, highlighting stronger profitability versus the prior-year period.
RCL’s Operating Costs Increase Y/Y
Total cruise operating expenses in the first quarter increased 8.1% year over year to $2,247 million from $2,079 million, consistent with the higher operating base. Commission, transportation and other expenses were $564 million compared with $522 million in the year-ago quarter, while payroll and related costs rose to $400 million from $340 million.
Food expense increased to $264 million from $239 million, and marketing, selling and administrative expenses rose to $582 million from $562 million. Depreciation and amortization increased to $461 million from $412 million. Fuel expense declined to $265 million from $277 million, providing a modest offset to broader expense growth.
RCL Posts Higher Q1 Cash Flow & Capital Deployment
In the first quarter, net cash provided by operating activities increased 12.7% year over year to $1,834 million from $1,627 million. The improvement tracked the higher earnings profile and supported increased investment activity during the quarter.
Cash used in investing activities increased to $529 million from $440 million in the prior-year period. Purchases of property and equipment rose to $500 million from $428 million, reflecting higher capital deployment in the period.
RCL’s Q1 Liquidity & Shareholder Returns
As of March 31, 2026, cash and cash equivalents were $512 million compared with $825 million as of Dec. 31, 2025. Total assets were $41,990 million versus $41,619 million at 2025-end, while total liabilities were $31,962 million compared with $31,374 million at year-end. Long-term debt stood at $19,666 million versus $18,165 million at 2025-end, and the current portion of long-term debt was $1,448 million compared with $3,180 million at 2025-end.
Royal Caribbean continued returning capital to its shareholders. The company repurchased $836 million of common stock during the quarter, up from $241 million in the year-ago period, reflecting a larger pace of buybacks year over year. During the quarter, dividends paid increased to $270 million from $148 million in the prior-year quarter. The higher level of shareholder distributions was supported by improved operating cash flow and the company’s liquidity position.
Royal Caribbean’s Outlook Targets Continued 2026 Growth
For the second quarter of 2026, the company guided adjusted earnings per share of $3.83-$3.93. It noted that the itinerary mix and the timing of drydocks are among the factors shaping the quarterly outlook.
For full-year 2026, Royal Caribbean expects adjusted earnings per share of $17.10-$17.50. The company also expects 2026 revenues to grow roughly 10% year over year. It anticipates capital expenditures of approximately $5 billion, aligned with new ship deliveries and destination investments intended to support its longer-term growth strategy.
RCL’s Zacks Rank & Key Picks
Royal Caribbean currently has a Zacks Rank #4 (Sell).
The company delivered a trailing four-quarter earnings surprise of 262.7%, on average. The consensus estimate for GDEV’s 2026 sales and EPS implies growth of 6.4% and 23.8%, respectively, from the year-ago levels.
Accel Entertainment carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 23.4%, on average.
The consensus estimate for Accel Entertainment’s 2026 sales and EPS implies growth of 5.1% and 15%, respectively, from the year-ago levels.
Take-Two Interactive carries a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 58.9%, on average.
The Zacks Consensus Estimate for Take-Two Interactive’s 2026 sales and EPS indicates growth of 18.2% and 90.7%, respectively, from the year-ago levels.
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Royal Caribbean Q1 Earnings & Revenues Beat Estimates, Stock Up
Key Takeaways
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported first-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased on a year-over-year basis. Post the results, the cruise stock rose 6.3% in the pre-market trading session, primarily driven by strong 2026 guidance.
In the quarter under review, the company reported adjusted earnings per share (EPS) of $3.60, beating the Zacks Consensus Estimate of $3.20. In the year-ago quarter, RCL posted an adjusted EPS of $2.71.
Revenues in the quarter totaled $4.45 billion, beating the consensus mark of $4.44 billion. The metric increased 11.3% year over year.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. Quote
Performance reflected continued strength in close-in demand and onboard spending. Occupancy was 108.5%, while the company reported net yield growth of 3.6% on an as-reported basis, reinforcing the quarter’s pricing-led momentum.
RCL Sustains Momentum With Record Booking Weeks
Royal Caribbean’s demand commentary remained constructive. Management cited a sharp acceleration in bookings following strong Cyber sales and a healthy start to the WAVE season, resulting in the seven strongest booking weeks in the company’s history. The strength was characterized as broad-based, signaling continued consumer preference for the company’s branded vacation offerings.
Operationally, the quarter also benefited from higher deployment and improved guest throughput. The company delivered memorable vacations to 2.5 million guests and increased capacity 8.9% year over year, reinforcing the durability of demand even as supply expands across key itineraries.
Royal Caribbean Gains Revenues From Tickets & Onboard Spend
The first-quarter top line advanced on strength across the two primary revenue streams. Passenger ticket revenues rose to $3,021 million from $2,744 million in the prior-year quarter, reflecting favorable pricing and strong load factors. That performance was supported by continued demand for the company’s core itineraries and product differentiation. Our model projected first-quarter passenger ticket revenues to be $3 billion.
Onboard and other revenues increased to $1,431 million from $1,255 million a year ago, highlighting continued traction in pre-cruise and onboard purchases. Management emphasized that spending trends remain healthy, supported by higher guest participation and pricing, with purchasing increasingly occurring through digital channels ahead of sailing. Our model projected the first quarter onboard & other revenues to be $1.4 billion.
Royal Caribbean Expands Profitability Versus Prior Year
In the first quarter, operating income increased 23.0% year over year to $1,162 million from $945 million, reflecting improved revenue capture in the period. Net income attributable to Royal Caribbean rose 28.9% to $941 million from $730 million reported in the prior-year quarter.
On an adjusted basis, net income attributable to Royal Caribbean increased 31% to $975 million from $744 million a year earlier. Adjusted EBITDA rose 21.4% to $1,702 million from $1,402 million, and adjusted EBITDA margin improved to 38.2% from 35.1%, highlighting stronger profitability versus the prior-year period.
RCL’s Operating Costs Increase Y/Y
Total cruise operating expenses in the first quarter increased 8.1% year over year to $2,247 million from $2,079 million, consistent with the higher operating base. Commission, transportation and other expenses were $564 million compared with $522 million in the year-ago quarter, while payroll and related costs rose to $400 million from $340 million.
Food expense increased to $264 million from $239 million, and marketing, selling and administrative expenses rose to $582 million from $562 million. Depreciation and amortization increased to $461 million from $412 million. Fuel expense declined to $265 million from $277 million, providing a modest offset to broader expense growth.
RCL Posts Higher Q1 Cash Flow & Capital Deployment
In the first quarter, net cash provided by operating activities increased 12.7% year over year to $1,834 million from $1,627 million. The improvement tracked the higher earnings profile and supported increased investment activity during the quarter.
Cash used in investing activities increased to $529 million from $440 million in the prior-year period. Purchases of property and equipment rose to $500 million from $428 million, reflecting higher capital deployment in the period.
RCL’s Q1 Liquidity & Shareholder Returns
As of March 31, 2026, cash and cash equivalents were $512 million compared with $825 million as of Dec. 31, 2025. Total assets were $41,990 million versus $41,619 million at 2025-end, while total liabilities were $31,962 million compared with $31,374 million at year-end. Long-term debt stood at $19,666 million versus $18,165 million at 2025-end, and the current portion of long-term debt was $1,448 million compared with $3,180 million at 2025-end.
Royal Caribbean continued returning capital to its shareholders. The company repurchased $836 million of common stock during the quarter, up from $241 million in the year-ago period, reflecting a larger pace of buybacks year over year. During the quarter, dividends paid increased to $270 million from $148 million in the prior-year quarter. The higher level of shareholder distributions was supported by improved operating cash flow and the company’s liquidity position.
Royal Caribbean’s Outlook Targets Continued 2026 Growth
For the second quarter of 2026, the company guided adjusted earnings per share of $3.83-$3.93. It noted that the itinerary mix and the timing of drydocks are among the factors shaping the quarterly outlook.
For full-year 2026, Royal Caribbean expects adjusted earnings per share of $17.10-$17.50. The company also expects 2026 revenues to grow roughly 10% year over year. It anticipates capital expenditures of approximately $5 billion, aligned with new ship deliveries and destination investments intended to support its longer-term growth strategy.
RCL’s Zacks Rank & Key Picks
Royal Caribbean currently has a Zacks Rank #4 (Sell).
Some better-ranked stocks from the Zacks Consumer Discretionary sector are GDEV Inc. (GDEV - Free Report) , Accel Entertainment, Inc. (ACEL - Free Report) and Take-Two Interactive Software, Inc. (TTWO - Free Report) .
GDEV presently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The company delivered a trailing four-quarter earnings surprise of 262.7%, on average. The consensus estimate for GDEV’s 2026 sales and EPS implies growth of 6.4% and 23.8%, respectively, from the year-ago levels.
Accel Entertainment carries a Zacks Rank #2 (Buy) at present. The company delivered a trailing four-quarter earnings surprise of 23.4%, on average.
The consensus estimate for Accel Entertainment’s 2026 sales and EPS implies growth of 5.1% and 15%, respectively, from the year-ago levels.
Take-Two Interactive carries a Zacks Rank #2 at present. The company delivered a trailing four-quarter earnings surprise of 58.9%, on average.
The Zacks Consensus Estimate for Take-Two Interactive’s 2026 sales and EPS indicates growth of 18.2% and 90.7%, respectively, from the year-ago levels.