Royal Caribbean (RCL) Q3 2026 Earnings Report
MX:RCL Q3 2026 EPS Results
- Actual EPS
- MXN 123.42
- Consensus EPS
- MXN 119.93
- Beat/Miss
- Beat by +MXN 3.49
- One Year Ago EPS
- MXN 108.02
MX:RCL Q3 2026 Revenue Results
- Actual Revenue
- MXN 105.03B
- Expected Revenue
- MXN 105.34B
- Beat/Miss
- Missed by -MXN 307.41M
- YoY Revenue Growth
- +8.80%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/27/2026
- Time
- Before Open
- Conference Call
- Tuesday, October 27, 2026
Royal Caribbean's next earnings date is estimated for February 4, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. Royal Caribbean reported better-than-expected third-quarter results, raised full-year guidance, cited record booking positions and accelerating demand, and highlighted strong cash flow, liquidity, guest satisfaction, loyalty growth, and strategic expansion through new ships, destinations, Celebrity River Cruises, and the Sandals and Beaches partnership. The main challenges were fuel, currency, geopolitical, and timing-related headwinds, along with near-term uncertainty around the Sandals closing and Mahahual updates, but these were outweighed by the company's operating performance and growth outlook.
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.
- Third-Quarter Results Exceeded ExpectationsThird-quarter revenue grew 9% year-over-year, adjusted earnings per share were $6.57, or $0.26 above the midpoint of guidance, and earnings came in 4% above guidance. The company delivered 2.7 million vacations, capacity increased 8% year-over-year, and net yields rose 0.6%, approximately 60 basis points above guidance.
- Strong Quarterly Profitability and Cash FlowThird-quarter adjusted EBITDA was $2.5 billion with a 45% margin, while operating cash flow was $1.6 billion. Net cruise costs per APCD excluding fuel decreased 1.8% year-over-year, approximately 40 basis points better than expected, although the company said this benefit was due to the timing of costs shifting into the fourth quarter.
- Full-Year Guidance Increased and Earnings Growth Remains StrongFull-year net yields are expected to grow approximately 2.1%, total revenue is expected to grow 9% with capacity growth of 6.6%, and adjusted EPS guidance is now $17.85-$17.95, representing 14% year-over-year growth. Management cited continued margin expansion and robust cash flow generation.
- Accelerating Booking DemandSince the prior earnings call, booking volumes increased in the mid-teens year-over-year, while bookings for 2027 sailings were up in the high teens. Book position for both 2026 and 2027 was ahead of the prior year at record rates.
- Strong Close-In Demand and Onboard RevenueThe third-quarter beat was driven by better-than-expected closing demand and strong onboard revenue, primarily for Europe and Caribbean products. Management also said onboard spend was much stronger than anticipated.
- Positive Fourth-Quarter OutlookFourth-quarter capacity is expected to increase 5% year-over-year, while net yields are expected to grow between 4.2% and 4.7% in constant currency. Net cruise costs excluding fuel are expected to decrease between 0.9% and 1.4% in constant currency, and adjusted EPS is expected to be between $3.48 and $3.58.
- Perfecta Program Tracking Ahead of Target2027 is the final year of the Perfecta program, and management said the business is performing well ahead of expectations. At the spot fuel rate in effect when the program was announced, the company would exceed its 2027 earnings target by about a dollar per share. The company remains on track to achieve its 20% adjusted EPS CAGR target based on the current forward fuel price curve for a $20 handle in 2027, and it has already achieved its ROIC target.
- 2027 Capacity Expansion and New ProductsCapacity is expected to grow 4.5% in 2027, driven by new hardware and fewer dry-dock capacity days. The company expects to welcome Hero of the Seas, begin operating Celebrity River, move Icon of the Seas to Galveston, and increase Asia Pacific capacity. 2027 deployment is expected to be 56% Caribbean, 16% Europe, 11% Asia Pacific, and 5% Alaska.
- Broad Geographic Demand and Destination DevelopmentManagement said 46% of the business is outside the Caribbean and described continued growth opportunities in Europe, Asia Pacific, Australia, New Zealand, Japan, China, and Alaska. The company has more than 100 destination projects in some form or fashion, and Royal Beach Club in Lelepa is scheduled for a groundbreaking ceremony in two weeks. Four ships are expected to operate from Australia in 2028 and three in 2027.
- High Guest Satisfaction and Growing Repeat TravelThe company reported net promoter scores in the mid-70s, with Icon-class ships generating scores in the 80s. Close to half of this year's guests were repeat customers, while new-to-brand guests are becoming loyal repeat cruisers and the average time between cruises continues to decrease.
- Loyalty Ecosystem Is ExpandingThis year, 40% of guests are loyalty customers. Loyalty share has increased across nearly all tiers, with the strongest growth among entry-level members. Status Match, Points Choice, and Royal ONE are being used to connect brands, and guests who sail across brands have higher APDs than guests who sail on only one brand.
- Sandals and Beaches Partnership Expands Vacation PlatformRoyal Caribbean agreed to invest approximately $3 billion for a 50% stake in Sandals and Beaches Resorts at 10 times forward EBITDA. Management expects the investment to be immediately accretive to earnings while keeping the company within its leverage targets. The transaction expands the platform into the all-inclusive segment, where Sandals is the leading adult-only Caribbean all-inclusive brand and Beaches serves families and multigenerational travelers.
- Large All-Inclusive Market and Cross-Selling OpportunityThe Caribbean all-inclusive market was described as a $16 billion market growing 11% a year. Royal Caribbean currently captures only 20%-25% of guests' annual vacation spend, while approximately 30% of guests had taken a Caribbean all-inclusive vacation in the last two years. Adding all-inclusive resorts is expected to expand the company's reach to roughly 50% of the vacation wallet.
- Sandals and Beaches Growth AssetsThe Sandals and Beaches portfolio includes 18 high-quality all-inclusive resorts and more than 1,000 acres of undeveloped Caribbean real estate, much of it adjacent to existing resorts. The development plan includes three new beach resorts and significant room expansions across the existing portfolio, funded by the business's own cash flow generation.
- Potential Sandals and Beaches SynergiesManagement identified several hundred million dollars of synergy opportunities over time through revenue management, digital engagement, distribution, procurement, technology, data, customer acquisition, and global scale. Management also said the brands may have potential outside the Caribbean, while current efforts are focused on expanding within the Caribbean.
- Strong Liquidity and Capital AccessThe company ended the quarter with $7.4 billion in liquidity and leverage below three times, consistent with its goal of maintaining solid investment-grade metrics. It issued $1.25 billion of approximately 5.5% senior unsecured notes due 2034, entered into a $400 million delayed draw term loan with Export Development Canada, and increased its revolving credit facility by $50 million to $6.65 billion.
- Icon of the Seas Positioned for GalvestonManagement expects Icon of the Seas to be received exceptionally well in Texas and described it as the best product entering Texas from the cruise industry. The ship is expected to operate with a load factor of 133%, carrying 7,600 people, while generating net promoter scores in the 80s.
MX:RCL Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 04, 2027 | 2026 (Q4) | 67.65- | 52.6 | ― | ― |
| Oct 27, 2026 | 2026 (Q3) | 119.93123.42 | 108.02 | 14.26% (+15.40) | |
| Jul 28, 2026 | 2026 (Q2) | 74.8479.09 | 82.28 | -3.88% (-3.19) | |
| Apr 30, 2026 | 2026 (Q1) | 60.7967.63 | 50.91 | 32.84% (+16.72) | |
| Jan 29, 2026 | 2025 (Q4) | 52.5452.60 | 30.62 | 71.78% (+21.98) | |
| Oct 28, 2025 | 2025 (Q3) | 106.84108.02 | 97.69 | 10.58% (+10.33) | |
| Jul 29, 2025 | 2025 (Q2) | 76.7882.28 | 60.3 | 36.45% (+21.98) | |
| Apr 29, 2025 | 2025 (Q1) | 47.9050.91 | 33.25 | 53.11% (+17.66) | |
| Jan 28, 2025 | 2024 (Q4) | 28.1230.62 | 23.48 | 30.40% (+7.14) | |
| Oct 29, 2024 | 2024 (Q3) | 94.5997.69 | 72.33 | 35.06% (+25.36) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.