Royal Caribbean Q2 profit beats estimates, lifts outlook

Overview

• US cruise operator's Q2 adjusted EPS beat analyst expectations

• Q2 revenue rose 6% yr/yr to $4.8 bln, driven by strong demand

• Company raised full-year adjusted EPS guidance after better-than-expected Q2

Outlook

• Royal Caribbean raises full-year 2026 Adjusted EPS guidance to $17.73-$17.87

• Company expects Q3 2026 Adjusted EPS of $6.26-$6.36

• Company anticipates full-year 2026 revenue growth of 9% and Net Yields up 2.35%-2.85%

Result Drivers

• CLOSE-IN DEMAND - Net yield growth exceeded company guidance, driven by stronger than expected close-in demand

• FAVORABLE COST TIMING - Better-than-expected cost performance was primarily driven by favorable timing of expenses

• JOINT VENTURE PERFORMANCE - Favorable performance from joint ventures contributed to results

Company press release: ID:nPnqHZbBa

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 23 "strong buy" or "buy", 9 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the hotels, motels cruise lines peer group is "buy"

• Wall Street's median 12-month price target for Royal Caribbean Cruises Ltd is $332.00, about 8.8% above its July 27 closing price of $305.04

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

Reuters Recommended Reads

• July 28 - Hilton raises annual room revenue growth forecast on strong luxury hotel demand

• July 27 - JetBlue updates fare structure as airlines see benefit of segmented pricing

• July 27 - Monaco's Costamare Q2 voyage revenue falls 4.8% on lower charter rates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)