Cruise operator beat second-quarter profit estimates and raised its annual forecast as strong demand offset geopolitical booking pressure, while lower full-year fuel costs and softer yield expectations shaped the outlook.
Royal Caribbean shares rose after the company lifted its 2026 adjusted earnings per share guidance to $17.73-$17.87, with a midpoint of $17.80, 50 cents above the prior midpoint, after reporting second-quarter adjusted EPS of $4.21 versus a $3.98 analyst consensus. Revenue rose 6% to $4.8 billion, slightly below the $4.82 billion Wall Street estimate, while net yields increased 1.9% on an as-reported basis, adjusted EBITDA was $1.83 billion, and load factor reached 110%. The company said consumer demand remained strong, though it incorporated a modest bookings hit from prolonged geopolitical tensions and lowered yield expectations by about 20 basis points, according to Jefferies. Quarterly fuel expense rose 27% to $355 million, but Royal Caribbean trimmed its full-year fuel expense forecast to about $1.34 billion from $1.35 billion. For the third quarter, it projected adjusted EPS of $6.26-$6.36, about in line with analyst expectations, alongside 8% revenue growth and approximately flat as-reported net yields.