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Royal Caribbean Q2 Earnings & Revenues Beat Estimates on Strong Demand
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Key Takeaways
RCL beat Q2 estimates with EPS of $4.21 and revenues of $4.83 billion, though profit declined.
Royal Caribbean's revenues rose 6.5% as close-in demand, pricing and onboard spending stayed strong.
RCL raised 2026 EPS guidance to $17.73-$17.87, while costs rose on higher fuel and payroll.
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased, but the bottom line declined on a year-over-year basis. Post the results, the cruise stock fell 1.2% in the pre-market trading session.
The company reported second-quarter 2026 adjusted earnings of $4.21 per share, which surpassed the Zacks Consensus Estimate of $3.97 by 6.1%. However, adjusted earnings declined 3.9% from $4.38 in the year-ago quarter.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Revenues totaled $4.83 billion, beating the consensus mark of $4.81 billion by 0.5%. The top line increased 6.5% year over year. Results benefited from strong close-in demand, lower-than-expected costs and favorable joint-venture performance. Occupancy remained healthy at 110.2%.
RCL Sustains Demand Momentum at Record Pricing
Royal Caribbean’s demand commentary remained constructive. Booking volumes were above year-ago levels, while the company remained booked at record prices. Load factors also stayed robust across its vacation portfolio.
Net yields increased 1.9% on an as-reported basis and 1.2% in constant currency. The metric exceeded management’s guidance, primarily reflecting better-than-expected close-in demand. Capacity increased 4.9% year over year, while the number of passengers carried rose 6.4% to nearly 2.4 million.
Royal Caribbean Gains From Tickets and Onboard Spend
The second-quarter top line advanced on strength across the two primary revenue streams. Passenger ticket revenues increased 4.5% year over year to $3.34 billion from $3.20 billion. The increase reflected capacity growth, healthy pricing and continued demand for the company’s differentiated cruise experiences. Our model projected second-quarter passenger ticket revenues to be $3.34 billion.
Onboard and other revenues rose 11.1% to $1.49 billion from $1.34 billion in the prior-year quarter. Management highlighted strong guest engagement and demand for onboard and destination experiences. Product enhancements and more targeted pre-cruise engagement also supported guest spending. Our model projected second-quarter onboard & other revenues to be $1.48 billion.
Royal Caribbean Posts Lower Q2 Profitability
Operating income declined 1.7% year over year to $1.31 billion from $1.33 billion, as operating expense growth exceeded the increase in revenues. Net income attributable to Royal Caribbean decreased 6.8% to $1.13 billion from $1.21 billion.
Adjusted net income fell 6% to $1.13 billion from $1.20 billion. Adjusted EBITDA declined 1.1% to $1.83 billion from $1.85 billion. Adjusted EBITDA margin contracted to 37.9% from 40.8% in the prior-year quarter.
RCL’s Costs Rise as Fuel and Payroll Increase
Total cruise operating expenses increased 11.6% year over year to $2.55 billion. Payroll and related expenses climbed 23.1% to $405 million, while fuel costs increased 27.2% to $355 million.
Food expenses rose 6.5% to $262 million, while other operating expenses increased 9.6% to $615 million. Marketing, selling and administrative expenses were $513 million compared with $508 million a year ago. Net cruise costs excluding fuel per available passenger cruise day increased 4.4% as reported and 3.9% in constant currency.
RCL Generates Higher Cash Flow, Returns Capital
For the first six months of 2026, net cash provided by operating activities increased 9.5% year over year to $3.69 billion.
During the second quarter, Royal Caribbean returned more than $600 million to its shareholders. This included $199 million of share repurchases and $404 million of dividend payments. The company had $805 million remaining under its current repurchase authorization.
As of June 30, 2026, cash and cash equivalents were $875 million compared with $825 million at the end of 2025. Total liquidity was $6.9 billion, including available capacity under the company’s revolving credit facilities.
Royal Caribbean Raises 2026 Earnings Outlook
For the third quarter of 2026, Royal Caribbean expects adjusted earnings of $6.26-$6.36 per share. Total revenues are projected to increase 8%, while net yields are expected to remain approximately flat on both an as-reported and constant-currency basis.
The company raised its full-year adjusted earnings guidance to $17.73-$17.87 per share from the prior projection of $17.10-$17.50. The updated range represents expected growth of 14% year over year.
Royal Caribbean expects 2026 revenues to rise 9%. Net yields are projected to increase 2.35%-2.85% as reported and 1.75%-2.25% in constant currency. Capacity is expected to grow 6.6%, while capital expenditures are anticipated to be approximately $4.7 billion.
RCL’s Zacks Rank & Key Picks
Royal Caribbean currently has a Zacks Rank #3 (Hold).
Life Time Group presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Life Time Group delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 67.3% in the year-to-date period. The Zacks Consensus Estimate for LTH’s 2026 sales and EPS implies growth of 11.3% and 18.1%, respectively, from the year-ago levels.
AMC Entertainment presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 64.1% in the year-to-date period.
The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 13.3% and 77.1%, respectively, from the year-ago levels.
Marcus currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings miss of 40.4%, on average. The stock has gained 59.3% in the year-to-date period.
The Zacks Consensus Estimate for Marcus’ 2026 sales and EPS indicates growth of 6.2% and 211.8%, respectively, from the year-ago period’s levels.
View the Zacks #1 Rank List
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Royal Caribbean Q2 Earnings & Revenues Beat Estimates on Strong Demand
Key Takeaways
Royal Caribbean Cruises Ltd. (RCL - Free Report) reported second-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top line increased, but the bottom line declined on a year-over-year basis. Post the results, the cruise stock fell 1.2% in the pre-market trading session.
The company reported second-quarter 2026 adjusted earnings of $4.21 per share, which surpassed the Zacks Consensus Estimate of $3.97 by 6.1%. However, adjusted earnings declined 3.9% from $4.38 in the year-ago quarter.
Royal Caribbean Cruises Ltd. Price, Consensus and EPS Surprise
Royal Caribbean Cruises Ltd. price-consensus-eps-surprise-chart | Royal Caribbean Cruises Ltd. Quote
Revenues totaled $4.83 billion, beating the consensus mark of $4.81 billion by 0.5%. The top line increased 6.5% year over year. Results benefited from strong close-in demand, lower-than-expected costs and favorable joint-venture performance. Occupancy remained healthy at 110.2%.
RCL Sustains Demand Momentum at Record Pricing
Royal Caribbean’s demand commentary remained constructive. Booking volumes were above year-ago levels, while the company remained booked at record prices. Load factors also stayed robust across its vacation portfolio.
Net yields increased 1.9% on an as-reported basis and 1.2% in constant currency. The metric exceeded management’s guidance, primarily reflecting better-than-expected close-in demand. Capacity increased 4.9% year over year, while the number of passengers carried rose 6.4% to nearly 2.4 million.
Royal Caribbean Gains From Tickets and Onboard Spend
The second-quarter top line advanced on strength across the two primary revenue streams. Passenger ticket revenues increased 4.5% year over year to $3.34 billion from $3.20 billion. The increase reflected capacity growth, healthy pricing and continued demand for the company’s differentiated cruise experiences. Our model projected second-quarter passenger ticket revenues to be $3.34 billion.
Onboard and other revenues rose 11.1% to $1.49 billion from $1.34 billion in the prior-year quarter. Management highlighted strong guest engagement and demand for onboard and destination experiences. Product enhancements and more targeted pre-cruise engagement also supported guest spending. Our model projected second-quarter onboard & other revenues to be $1.48 billion.
Royal Caribbean Posts Lower Q2 Profitability
Operating income declined 1.7% year over year to $1.31 billion from $1.33 billion, as operating expense growth exceeded the increase in revenues. Net income attributable to Royal Caribbean decreased 6.8% to $1.13 billion from $1.21 billion.
Adjusted net income fell 6% to $1.13 billion from $1.20 billion. Adjusted EBITDA declined 1.1% to $1.83 billion from $1.85 billion. Adjusted EBITDA margin contracted to 37.9% from 40.8% in the prior-year quarter.
RCL’s Costs Rise as Fuel and Payroll Increase
Total cruise operating expenses increased 11.6% year over year to $2.55 billion. Payroll and related expenses climbed 23.1% to $405 million, while fuel costs increased 27.2% to $355 million.
Food expenses rose 6.5% to $262 million, while other operating expenses increased 9.6% to $615 million. Marketing, selling and administrative expenses were $513 million compared with $508 million a year ago. Net cruise costs excluding fuel per available passenger cruise day increased 4.4% as reported and 3.9% in constant currency.
RCL Generates Higher Cash Flow, Returns Capital
For the first six months of 2026, net cash provided by operating activities increased 9.5% year over year to $3.69 billion.
During the second quarter, Royal Caribbean returned more than $600 million to its shareholders. This included $199 million of share repurchases and $404 million of dividend payments. The company had $805 million remaining under its current repurchase authorization.
As of June 30, 2026, cash and cash equivalents were $875 million compared with $825 million at the end of 2025. Total liquidity was $6.9 billion, including available capacity under the company’s revolving credit facilities.
Royal Caribbean Raises 2026 Earnings Outlook
For the third quarter of 2026, Royal Caribbean expects adjusted earnings of $6.26-$6.36 per share. Total revenues are projected to increase 8%, while net yields are expected to remain approximately flat on both an as-reported and constant-currency basis.
The company raised its full-year adjusted earnings guidance to $17.73-$17.87 per share from the prior projection of $17.10-$17.50. The updated range represents expected growth of 14% year over year.
Royal Caribbean expects 2026 revenues to rise 9%. Net yields are projected to increase 2.35%-2.85% as reported and 1.75%-2.25% in constant currency. Capacity is expected to grow 6.6%, while capital expenditures are anticipated to be approximately $4.7 billion.
RCL’s Zacks Rank & Key Picks
Royal Caribbean currently has a Zacks Rank #3 (Hold).
Some better-ranked stocks from the Zacks Consumer-Discretionary sector are Life Time Group Holdings, Inc. (LTH - Free Report) , AMC Entertainment Holdings, Inc. (AMC - Free Report) and The Marcus Corporation (MCS - Free Report) .
Life Time Group presently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
Life Time Group delivered a trailing four-quarter earnings surprise of 10.9%, on average. The stock has surged 67.3% in the year-to-date period. The Zacks Consensus Estimate for LTH’s 2026 sales and EPS implies growth of 11.3% and 18.1%, respectively, from the year-ago levels.
AMC Entertainment presently flaunts a Zacks Rank #1. The company delivered a trailing four-quarter earnings surprise of 321.7%, on average. The stock has rallied 64.1% in the year-to-date period.
The Zacks Consensus Estimate for AMC Entertainment’s 2026 sales and EPS indicates an increase of 13.3% and 77.1%, respectively, from the year-ago levels.
Marcus currently sports a Zacks Rank #1. The company delivered a trailing four-quarter earnings miss of 40.4%, on average. The stock has gained 59.3% in the year-to-date period.
The Zacks Consensus Estimate for Marcus’ 2026 sales and EPS indicates growth of 6.2% and 211.8%, respectively, from the year-ago period’s levels.