Q3 beat and a higher bar for earnings
Royal Caribbean followed a better-than-forecast third quarter by lifting its full-year outlook. Strength in European and Caribbean sailings made up for higher fuel expenses linked to turmoil in the Middle East.
What executives and analysts said
Chief Executive Officer Jason Liberty said, "Demand for our leading vacation experiences remains strong," and noted that bookings for 2027 are pacing above historical levels. Vital Knowledge's Adam Crisafulli wrote the company is performing "very well considering the fuel environment, with very healthy underlying demand," while Jefferies' David Katz said the Q3 beat was "partially offset" by weaker-than-expected fourth-quarter guidance, though he called the 2027 commentary "positive."
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Peers and what to watch next
Last month, Carnival Corp. lifted its guidance on the back of robust European bookings, and it intends to divide its 2027 capacity evenly between Europe and the Caribbean to satisfy that demand. For your portfolio, keep an eye on Royal Caribbean's 2026 EPS range of $17.85 to $17.95 versus the $17.82 consensus, along with management's note that 2027 bookings are running above historical levels.
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