Royal Caribbean (0I1W) AI Stock Analysis

Company Guidance

For 2026, capacity is expected to grow 6.6%, net yields approximately 2.1% in constant currency, total revenue 9%, net cruise costs, excluding fuel, approximately flat in constant currency, full-year fuel expense approximately $1.35 billion, and adjusted earnings per share $17.85 to $17.95; fourth-quarter capacity is expected to increase 5% year-over-year, net yields to grow between 4.2% and 4.7% in constant currency, net cruise costs, excluding fuel, to decrease between 0.9% and 1.4% in constant currency, fuel expense to be approximately $379 million based on forecasted consumption of approximately 463,000 metric tons with fourth-quarter consumption 58% hedged, and adjusted earnings per share to be between $3.48 and $3.58. For 2027, capacity growth is expected to be 4.5%, with 56% in the Caribbean, 16% in Europe, 11% in Asia Pacific, and 5% in Alaska; yield growth is expected to be weighted towards the second half of the year, as the first quarter faces approximately 200 basis points of structural headwinds, including timing of dry docks, and the company remains on track to achieve its 20% adjusted earnings per share CAGR target based on the current forward fuel price curve for a $20 handle in 2027.