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Royal Caribbean falls despite earnings beat, as revenue misses expectations

July 28, 2026 6:58 AM

Investing.com -- Royal Caribbean Group (NYSE: RCL) reported its latest quarterly earnings on Tuesday, with revenue missing expectations, sending the stock down over 4% premarket.



Second-quarter adjusted earnings per share of $4.21 beat the analyst consensus estimate of $3.93, though revenue of $4.8 billion fell slightly short of the $4.81 billion consensus.


The cruise operator raised its full-year adjusted EPS guidance to a range of $17.73 to $17.87, with a midpoint of $17.80 that exceeds the analyst consensus of $17.34. Revenue increased 6% YoY from the prior year period.


The company attributed the stronger-than-expected quarterly performance to strong close-in demand, lower costs, and favorable performance from joint ventures. However, RCL noted a modest booking impact for select itineraries primarily due to prolonged geopolitical activity.


"The strong second quarter performance demonstrates the continued strength of our brands, the appeal of our vacation experiences, and the momentum in our business," said Jason Liberty, Chairman and CEO. "We expect another year of approximately double-digit growth in revenue and earnings, driven by consumers' preference for our leading brands."


For the third quarter, Royal Caribbean expects adjusted EPS in the range of $6.26 to $6.36. Net yields are expected to be approximately flat compared to 2025, while the company projects total revenue growth of 8%. Net cruise costs excluding fuel per available passenger cruise day are expected to decrease 1.7% to 1.2% as-reported.

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