Royal Caribbean Group raised its full-year 2026 earnings guidance to $17.73–$17.87 per share on July 28, after reporting second-quarter adjusted earnings per share of $4.21, beating its guidance by $0.33 and exceeding analyst expectations as strong consumer demand and lower costs drove results.
The cruise operator reported second-quarter revenue of $4.8 billion, up 6% year-over-year, while delivering 2.4 million passengers—a 6% increase from the same period last year. Net yields, a key pricing metric, increased 1.9% as reported, driven by what the company described as better-than-expected close-in demand.
The raised guidance represents approximately 14% year-over-year earnings growth and reflects the stronger-than-expected second-quarter performance. Royal Caribbean now projects full-year 2026 revenue will grow 9% year-over-year. According to the company’s earnings release, the results were driven by “strong close-in demand, lower costs, and favorable performance from joint ventures.” CEO Jason Liberty said in a statement: “The strong second quarter performance demonstrates the continued strength of our brands, the appeal of our vacation experiences, and the momentum in our business.”
Royal Caribbean’s updated outlook incorporates what the company called “a modest, near-term impact on bookings for select itineraries, primarily due to prolonged geopolitical activity.” Despite this headwind, the company noted it remains “booked at record prices, booking volumes are above last year’s levels, and load factors remain robust across its vacation portfolio.” Load factor—the percentage of available capacity filled—reached 110% in the second quarter, indicating overbooking.
The guidance raise follows a pattern of upside surprises for the cruise operator this year. In April, Royal Caribbean had cut its full-year guidance to $17.10–$17.50 per share after beating first-quarter expectations, citing higher fuel costs. The July increase to $17.73–$17.87 now exceeds the company’s original 2026 guidance issued in January, signaling momentum has accelerated through mid-year.
The company is executing its “Perfecta” program, a multi-year plan targeting 20% compound annual earnings growth from 2024 to 2027 and return on invested capital of 17% or higher by end of 2027. Royal Caribbean noted the 23% earnings compound annual growth rate over the first two years of the program supports this trajectory. The company took delivery of the Legend of the Seas, the third ship in its Icon class, during the second quarter and has committed financing for two additional Icon-class ships, Icon VI and Icon VII.
CFO Naftali Holtz stated that “consumer demand for our vacation experiences is strong, and guests continue to demonstrate a desire to spend on memorable experiences with us.” He added that “booking trends for 2027 are encouraging and pacing ahead of historical levels, including for itineraries where demand was impacted by geopolitical developments this year.”
Sources
- PR Newswire — Royal Caribbean Group’s official Q2 2026 earnings announcement, including adjusted EPS of $4.21, revenue of $4.8 billion, guidance raise to $17.73–$17.87, and CEO and CFO commentary
- MarketBeat — Confirmation of Q2 adjusted EPS of $4.21, $0.33 above guidance, and 6% revenue growth year-over-year
- 247 Wall St — Confirmation of full-year guidance raise to $17.73–$17.87 per share, representing 14% year-over-year growth
- Investing.com — Earnings call transcript noting strong demand, higher yields, solid onboard spending, record pricing, and geopolitical impact on select itineraries
- Yahoo Finance — Confirmation of Q2 revenue up 6% year-over-year and adjusted EPS $0.33 above guidance
