Royal Caribbean beats Q3 profit view, raises full-year outlook

 Royal Caribbean Group (NYSE: RCL) reported its third-quarter earnings before the open on Tuesday, with shares trading about 1% higher premarket.

Adjusted earnings per share of $6.57 surpassed the analyst estimate of $6.38, while revenue of $5.6 billion came in slightly below the consensus of $5.61 billion. The cruise operator raised its full-year adjusted EPS guidance to a range of $17.85 to $17.95, with a midpoint of $17.90 that exceeds the analyst consensus of $17.83.

The company's third-quarter revenue increased 9% YoY, driven by strong close-in demand and lower costs due to timing. Net yields rose 0.9% as-reported and 0.6% in constant currency, exceeding guidance primarily due to better-than-expected demand in Europe and the Caribbean.

Net cruise costs excluding fuel per available passenger cruise days decreased 1.9% as-reported and 1.8% in constant currency, benefiting from expense timing that shifted into the fourth quarter.

"Our third quarter results reflect continued strong consumer demand for our vacation experiences and the accelerated momentum across our industry leading brands," said Jason Liberty, Chairman and CEO.

For the fourth quarter, Royal Caribbean expects adjusted EPS of $3.48 to $3.58. The company projects net yields to increase 4.4% to 4.9% as-reported and 4.2% to 4.7% in constant currency compared to 2025. Net cruise costs excluding fuel per available passenger cruise days are expected to decrease 1.5% to 1.0% as-reported.

The company delivered vacations to 2.7 million guests in the third quarter, a 9% increase YoY, with load factor at 112%. For full-year 2026, Royal Caribbean expects revenue to grow 9% YoY, with net yields increasing approximately 2.7% as-reported and approximately 2.1% in constant currency.

Royal Caribbean also announced it expects to close its acquisition of a 50% interest in Sandals and Beaches Resorts in early 2027, which is expected to be immediately accretive.