Royal Caribbean Group Reports Q3 2026 Beat and Raises Full-Year Guidance

Executive Summary

On October 27, 2026, Royal Caribbean Cruises Ltd. filed Form 8-K furnishing its Q3 2026 financial results under Item 2.02. The company exceeded guidance across key metrics, fueled by strong close-in demand in Europe and the Caribbean alongside operational cost timing efficiencies, and increased its full-year 2026 Adjusted EPS guidance.

---

Key Financial Highlights

Third Quarter 2026 Performance

• Revenue: $5.6 billion, representing a 9% increase year-over-year.
• Net Income & EPS: Net income reached $1.7 billion ($6.45 per share), up from $1.6 billion ($5.74 per share) in Q3 2025.
• Adjusted Net Income & EPS: Adjusted net income was $1.8 billion ($6.57 per share) compared to $1.6 billion ($5.75 per share) in Q3 2025.
• Adjusted EBITDA: $2.5 billion.
• Operational Metrics: Load factor reached 112%; capacity rose 8% year-over-year with 2.7 million guests served.
• Yields & Costs: Net Yields increased 0.9% as-reported (0.6% Constant Currency). Net Cruise Costs (NCC) excluding fuel per APCD decreased 1.9% as-reported (1.8% Constant Currency), driven by timing shifts into Q4.

Full-Year 2026 Outlook

• Adjusted EPS: Raised to a range of $17.85 to $17.95.
• Revenue Growth: Expected at approximately 9% YoY.
• Net Yields: Anticipated to increase ~2.7% as-reported (~2.1% Constant Currency).
• Capacity: Capacity growth of 6.6% compared to 2025 across 56.8 million APCDs.
• Capital Expenditures: Expected at ~$4.6 billion, primarily for the ship order book and destination initiatives.

Fourth Quarter 2026 Guidance

• Adjusted EPS: Expected between $3.48 and $3.58.
• Net Yields: Projected to rise 4.4% to 4.9% as-reported.
• NCC ex-Fuel per APCD: Forecasted to decrease 1.5% to 1.0% as-reported.

---

Strategic Expansion & Strategic Targets

• Sandals and Beaches Resorts Partnership: Royal Caribbean agreed to acquire a 50% stake in Sandals and Beaches Resorts (18 Caribbean resorts plus 3 under development, alongside over 1,000 acres of land). Expected to close in early 2027, the investment will be accounted for under the equity method on a one-quarter lag and is slated to be immediately accretive.
• Perfecta Program Tracking: Management affirmed it is tracking toward its targets of delivering a 20% Adjusted EPS CAGR from 2024 through 2027 (targeting a "$20-handle" in 2027), with return on invested capital (ROIC) already above target.

---

Liquidity & Balance Sheet

• Liquidity Position: $7.4 billion as of September 30, 2026 (including cash, cash equivalents, and undrawn revolver capacity).
• Financing Activities: Issued $1.25 billion in 5.550% senior unsecured notes due 2034 to pay down floating-rate term loans and 2027 maturities. In October, added a $400 million delayed-draw term loan facility with Export Development Canada and expanded credit facility capacity to $6.65 billion.