Why Royal Caribbean Stock Is Rising After Revenue Guidance Cut -- Barrons.com

By Callum Keown

Shares of Royal Caribbean rose after the cruise line beat earnings estimates in the second quarter and hiked its full-year earnings guidance on Tuesday.

The cruise operator reported adjusted earnings per share of $4.21, ahead of analysts' expectations of $3.98. The beat was driven by strong close-in, or last-minute, demand and lower costs, the company said.

Royal Caribbean raised its full-year EPS guidance to between $17.73 and $17.87, up from a range of $17.10 to $17.50. The hike was down to better-than-expected performance in the second quarter and improved outlook for the rest of the year.

The stock was up 5.3% at $321.31 on Tuesday. The shares jumped 7.6% over the two previous sessions as oil prices fell sharply.

Investors view the earnings report as a signal that the stock can keep sailing higher -- it's now up 22% since the end of April.

The market is also looking beyond a cut to the company's full-year revenue outlook -- it is now expecting a 9% jump down from previous guidance of 10%.

Once the 23 cents-per-share earnings beat is factored in, the full-year hike of 50 cents per share doesn't seem like a huge improvement in the second half, especially with lower fuel prices.

The sector has been at the whim of oil prices for much of the year and as a result has had a challenging 2026. Royal Caribbean is up more than 9% this year through Monday's close but its biggest rivals Carnival and Norwegian Cruise Line are down around 10%.

Norwegian is set to report earnings on Thursday, with Carnival expected to report in the fall.

Write to Callum Keown at callum.keown@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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July 28, 2026 14:14 ET (18:14 GMT)