Royal Caribbean Cruises (NYSE:RCL) Shares Gap Up on Earnings Beat

Key Points

• Royal Caribbean beat earnings expectations: Third-quarter adjusted EPS was $6.57 versus the $6.38 consensus, while revenue rose 8.8% year over year to $5.59 billion, slightly below estimates. The results marked the company’s sixth consecutive quarterly EPS beat.
• Shares jumped on the results: RCL opened at $300, up from its prior close of $280.60, and last traded near $298.65. Management also raised its 2026 adjusted EPS forecast to $17.85–$17.95, citing strong bookings and demand.
• Investors should watch costs and valuation: Higher fuel expenses remain a profitability risk, while analysts maintain a “Moderate Buy” consensus with a $350.50 price target. The company also declared a $1.50 quarterly dividend, equivalent to a 2.0% yield.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Get Free Report) gapped up before the market opened on Tuesday following a stronger than expected earnings report. The stock had previously closed at $280.60, but opened at $300.00. Royal Caribbean Cruises shares last traded at $298.6450, with a volume of 1,036,665 shares trading hands.

The company reported $6.57 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $6.38 by $0.19. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. The firm had revenue of $5.59 billion during the quarter, compared to analysts' expectations of $5.61 billion. During the same quarter in the previous year, the company earned $5.75 earnings per share. The business's revenue for the quarter was up 8.8% on a year-over-year basis.

Royal Caribbean Cruises Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Thursday, October 8th. Stockholders of record on Thursday, September 17th were given a dividend of $1.50 per share. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.0%. The ex-dividend date of this dividend was Thursday, September 17th. Royal Caribbean Cruises's dividend payout ratio (DPR) is currently 37.08%.

Royal Caribbean Cruises News Summary

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Adjusted earnings beat expectations: Royal Caribbean reported third-quarter adjusted EPS of $6.57, above the $6.38 analyst consensus and up from $5.75 a year earlier. GAAP EPS was $6.45, with net profit rising to $1.73 billion from $1.58 billion. This marked the company’s sixth consecutive quarterly EPS beat. Royal Caribbean Beats Q3 Earnings and Revenue Estimates
• Positive Sentiment: Full-year guidance was raised: Management now expects 2026 adjusted EPS of $17.85 to $17.95, reflecting better-than-expected third-quarter performance. Strong close-in bookings and demand, along with lower costs due partly to timing, supported the improvement. Royal Caribbean Reports Third Quarter Results and Raises Guidance
• Positive Sentiment: Revenue continued to grow: Third-quarter revenue increased 8.8% year over year to $5.59 billion, indicating continued strength in cruise demand and pricing, despite being slightly below the $5.61 billion consensus estimate. Royal Caribbean Q3 Sales in Line With Estimates
• Neutral Sentiment: Fuel costs remain a risk: Higher-than-anticipated fuel expenses partly offset the earnings benefit from strong demand and cost timing. Management expects fourth-quarter adjusted EPS of $3.48 to $3.58, giving investors a near-term profitability benchmark. Royal Caribbean Earnings Are Good News for Cruise Fuel Fears

Analyst Ratings Changes

A number of analysts recently commented on RCL shares. Morgan Stanley upped their price objective on shares of Royal Caribbean Cruises from $280.00 to $300.00 and gave the company an "equal weight" rating in a research report on Thursday, July 30th. Truist Financial lifted their target price on Royal Caribbean Cruises from $297.00 to $298.00 and gave the stock a "hold" rating in a report on Thursday, September 24th. Sanford C. Bernstein reissued an "outperform" rating and issued a $355.00 target price (down from $380.00) on shares of Royal Caribbean Cruises in a research note on Wednesday, September 23rd. The Goldman Sachs Group increased their price target on Royal Caribbean Cruises from $354.00 to $360.00 and gave the stock a "buy" rating in a report on Wednesday, July 29th. Finally, UBS Group restated a "buy" rating on shares of Royal Caribbean Cruises in a report on Wednesday, September 23rd. Twenty equities research analysts have rated the stock with a Buy rating and eight have issued a Hold rating to the stock. According to MarketBeat, the stock currently has a consensus rating of "Moderate Buy" and a consensus target price of $350.50.

Insider Activity at Royal Caribbean Cruises

In related news, CEO Michael Bayley sold 12,811 shares of the business's stock in a transaction on Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total value of $4,048,147.89. Following the sale, the chief executive officer directly owned 45,297 shares of the company's stock, valued at approximately $14,313,399.03. The trade was a 22.05% decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. 6.44% of the stock is currently owned by insiders.

Hedge Funds Weigh In On Royal Caribbean Cruises

A number of large investors have recently added to or reduced their stakes in RCL. BlackRock Inc. acquired a new stake in Royal Caribbean Cruises in the 2nd quarter valued at approximately $6,549,422,000. State Street Corp lifted its position in shares of Royal Caribbean Cruises by 2.6% in the second quarter. State Street Corp now owns 10,689,134 shares of the company's stock worth $3,409,971,000 after purchasing an additional 270,930 shares in the last quarter. Primecap Management Co. CA bought a new stake in shares of Royal Caribbean Cruises in the second quarter worth $669,804,000. Jupiter Topco LLC acquired a new position in Royal Caribbean Cruises during the second quarter worth $597,350,000. Finally, Dimensional Fund Advisors LP boosted its holdings in Royal Caribbean Cruises by 2.0% during the first quarter. Dimensional Fund Advisors LP now owns 1,957,044 shares of the company's stock worth $538,393,000 after purchasing an additional 38,748 shares during the last quarter. Institutional investors own 87.53% of the company's stock.

Royal Caribbean Cruises Price Performance

The firm has a market cap of $80.20 billion, a price-to-earnings ratio of 18.51, a PEG ratio of 0.97 and a beta of 1.82. The company's fifty day moving average is $272.01 and its 200 day moving average is $286.88. The company has a quick ratio of 0.19, a current ratio of 0.21 and a debt-to-equity ratio of 2.03.

About Royal Caribbean Cruises

Royal Caribbean Cruises Ltd., doing business as Royal Caribbean Group NYSE: RCL, is a global cruise company that operates vacation cruises and related travel experiences. Its fleet visits destinations across the Caribbean, Europe, Alaska, Asia, Australia, and other regions, with itineraries that typically include onboard entertainment, dining, accommodations, recreational activities, and shore excursions.

The company's principal brands include Royal Caribbean International, Celebrity Cruises, and Silversea Cruises.

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