Royal Caribbean beats Q2 estimates, raises full-year guidance on strong demand

Royal Caribbean Group reported second-quarter earnings that topped its own guidance, driven by strong close-in demand, lower costs and favorable performance from joint ventures.

"The results reflect the strength of our brands and the resilience of consumer demand for cruise vacations," Jason Liberty, chief executive officer of Royal Caribbean Group, said.

The Miami-based cruise operator posted adjusted earnings per share of $4.21 for the quarter ended June 30, above the Zacks Consensus Estimate of $3.97. Revenue came in at $4.81 billion, up 6 percent from a year earlier, matching consensus expectations. On a GAAP basis, EPS was $4.20.

Royal Caribbean delivered more than 2.5 million vacations during the quarter, with net yields growing 2 percent and exceeding the company's prior guidance. The company raised its full-year 2026 outlook, though it did not disclose specific revised figures. Onboard spending remained above prior-year levels, supported by digital adoption — mobile app usage exceeded 90 percent — and loyalty program enhancements that drove higher repeat customer spending.

Shares of Royal Caribbean rose more than 3 percent on Monday as crude oil prices plunged more than 7 percent, easing cost pressure on cruise operators. The stock has gained 9.5 percent over the past three months, outperforming the S&P 500 and peers including Norwegian Cruise Line Holdings Ltd., which rose 2.9 percent, and Carnival Corp., which fell 5.6 percent over the same period. RCL trades at a forward price-to-earnings multiple of 17.01, near the industry average of 16.17.

The guidance raise signals management expects demand to remain strong through the second half of the year. Investors will watch the company's next earnings call for updated commentary on booking trends, fuel costs and margin trajectory.

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