Zacks Research Issues Optimistic Forecast for RCL Earnings

Key Points

• Zacks Research raised its Q2 2027 EPS estimate for Royal Caribbean to $5.65 from $5.59, but it still kept a Strong Sell rating on the stock. The firm also lifted longer-term earnings estimates, including FY2027 to $19.06 per share and FY2028 to $22.04 per share.
• Royal Caribbean recently delivered stronger-than-expected results, posting Q1 EPS of $3.60 versus the $3.20 consensus and revenue growth of 11.3% year over year. The company also reaffirmed full-year guidance and highlighted resilient demand and record WAVE season bookings.
• Analyst sentiment remains mixed but mostly bullish, with 15 Buy ratings, four Holds, and one Sell, and an average price target of $345.63. The stock also pays a $1.50 quarterly dividend, equal to a 2.3% annualized yield.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) - Equities research analysts at Zacks Research boosted their Q2 2027 earnings per share estimates for Royal Caribbean Cruises in a research report issued to clients and investors on Thursday, May 21st. Zacks Research analyst Team now expects that the company will post earnings of $5.65 per share for the quarter, up from their prior forecast of $5.59. Zacks Research currently has a "Strong Sell" rating on the stock. The consensus estimate for Royal Caribbean Cruises' current full-year earnings is $17.27 per share. Zacks Research also issued estimates for Royal Caribbean Cruises' Q3 2027 earnings at $5.49 EPS, Q4 2027 earnings at $4.24 EPS, FY2027 earnings at $19.06 EPS, Q1 2028 earnings at $5.19 EPS and FY2028 earnings at $22.04 EPS.

A number of other research firms have also recently issued reports on RCL. Stifel Nicolaus set a $410.00 price target on Royal Caribbean Cruises in a report on Friday, May 1st. JPMorgan Chase & Co. cut their target price on shares of Royal Caribbean Cruises from $376.00 to $341.00 and set an "overweight" rating on the stock in a research report on Wednesday, April 8th. Tigress Financial upped their target price on shares of Royal Caribbean Cruises from $415.00 to $425.00 and gave the company a "buy" rating in a research report on Friday, February 6th. Mizuho set a $380.00 target price on shares of Royal Caribbean Cruises in a research report on Friday, May 1st. Finally, Jefferies Financial Group upped their target price on shares of Royal Caribbean Cruises from $275.00 to $334.00 and gave the company a "hold" rating in a research report on Friday, January 30th. Fifteen equities research analysts have rated the stock with a Buy rating, four have given a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the stock currently has an average rating of "Moderate Buy" and an average price target of $345.63.

Royal Caribbean Cruises Stock Performance

Royal Caribbean Cruises stock opened at $257.38 on Monday. The stock has a 50-day simple moving average of $269.55 and a 200 day simple moving average of $281.72. The company has a quick ratio of 0.17, a current ratio of 0.20 and a debt-to-equity ratio of 1.96. Royal Caribbean Cruises has a 12-month low of $232.10 and a 12-month high of $366.50. The stock has a market capitalization of $69.03 billion, a price-to-earnings ratio of 15.70, a P/E/G ratio of 0.90 and a beta of 1.77.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last released its quarterly earnings results on Thursday, April 30th. The company reported $3.60 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $3.20 by $0.40. Royal Caribbean Cruises had a return on equity of 45.25% and a net margin of 24.36%.The business had revenue of $4.45 billion during the quarter, compared to analysts' expectations of $4.46 billion. During the same period in the previous year, the business posted $2.71 earnings per share. The firm's revenue for the quarter was up 11.3% compared to the same quarter last year. Royal Caribbean Cruises has set its Q2 2026 guidance at 3.830-3.930 EPS and its FY 2026 guidance at 17.100-17.500 EPS.

Royal Caribbean Cruises Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Thursday, July 2nd. Stockholders of record on Wednesday, June 3rd will be paid a $1.50 dividend. The ex-dividend date of this dividend is Wednesday, June 3rd. This represents a $6.00 dividend on an annualized basis and a dividend yield of 2.3%. Royal Caribbean Cruises's dividend payout ratio is 36.61%.

Insider Activity at Royal Caribbean Cruises

In other news, Director Arne Alexander Wilhelmsen sold 245,476 shares of the company's stock in a transaction dated Friday, February 27th. The stock was sold at an average price of $311.54, for a total value of $76,475,593.04. Following the completion of the sale, the director directly owned 16,435,910 shares of the company's stock, valued at $5,120,443,401.40. This represents a 1.47% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Over the last three months, insiders sold 1,116,718 shares of company stock valued at $352,532,179. Corporate insiders own 6.44% of the company's stock.

Institutional Trading of Royal Caribbean Cruises

Institutional investors and hedge funds have recently modified their holdings of the stock. Capital International Investors grew its position in shares of Royal Caribbean Cruises by 9.8% in the 4th quarter. Capital International Investors now owns 36,165,358 shares of the company's stock valued at $10,088,156,000 after purchasing an additional 3,215,382 shares during the period. Vanguard Group Inc. grew its position in shares of Royal Caribbean Cruises by 0.6% in the 4th quarter. Vanguard Group Inc. now owns 30,253,450 shares of the company's stock valued at $8,438,292,000 after purchasing an additional 187,283 shares during the period. Capital Research Global Investors grew its position in shares of Royal Caribbean Cruises by 4.8% in the 4th quarter. Capital Research Global Investors now owns 20,176,544 shares of the company's stock valued at $5,627,669,000 after purchasing an additional 920,042 shares during the period. State Street Corp grew its position in shares of Royal Caribbean Cruises by 0.8% in the 3rd quarter. State Street Corp now owns 10,576,751 shares of the company's stock valued at $3,433,052,000 after purchasing an additional 84,202 shares during the period. Finally, Geode Capital Management LLC grew its position in shares of Royal Caribbean Cruises by 2.3% in the 4th quarter. Geode Capital Management LLC now owns 7,054,191 shares of the company's stock valued at $1,961,758,000 after purchasing an additional 155,491 shares during the period. 87.53% of the stock is owned by institutional investors.

Key Royal Caribbean Cruises News

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

• Positive Sentiment: Royal Caribbean reported a strong Q1 2026 with $4.50 billion in revenue, 11% year-over-year growth, and GAAP EPS of $3.48, topping guidance. The company also said demand remains resilient and that WAVE season bookings hit a record, which supports the bullish case for future cruise pricing and occupancy. Article
• Neutral Sentiment: The company reiterated roughly 10% revenue growth and higher net yields, but also pointed to geopolitical and environmental headwinds, suggesting execution remains solid while risks stay elevated. Article
• Negative Sentiment: Truist Financial lowered its price target on Royal Caribbean Cruises (RCL) from $318 to $297 and kept a hold rating, signaling less upside than before despite still being above the current share price. Article
• Negative Sentiment: Zacks Research downgraded RCL from hold to strong sell, and separately cut estimates for Q3 2026, Q4 2026, FY2026, and Q1 2027 earnings, adding to near-term pressure on the stock. Article
• Negative Sentiment: News that Mexico rejected Royal Caribbean’s Perfect Day water park project adds another regulatory setback, which could weigh on expansion plans and investor confidence. Article

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises NYSE: RCL, operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean's ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.

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