Zacks Research Issues Pessimistic Forecast for RCL Earnings

Key Points

• Zacks Research cut its Q2 2026 EPS estimate for Royal Caribbean Cruises to $3.87 from $4.36, signaling a more cautious outlook ahead of the next earnings cycle.
• Royal Caribbean’s most recent quarter was strong: it reported $3.60 EPS versus $3.20 expected and posted 11.3% year-over-year revenue growth, while also reaffirming Q2 2026 and FY2026 guidance.
• Wall Street remains broadly positive on RCL, with 15 Buy ratings, 4 Hold ratings, and a consensus target price of $347.21, even as the stock traded at $252.42 and insiders have sold shares in recent months.

Royal Caribbean Cruises Ltd. (NYSE:RCL - Free Report) - Analysts at Zacks Research decreased their Q2 2026 earnings per share (EPS) estimates for Royal Caribbean Cruises in a report issued on Thursday, May 14th. Zacks Research analyst Team now expects that the company will post earnings of $3.87 per share for the quarter, down from their previous estimate of $4.36. The consensus estimate for Royal Caribbean Cruises' current full-year earnings is $17.28 per share. Zacks Research also issued estimates for Royal Caribbean Cruises' Q1 2027 earnings at $3.70 EPS, FY2027 earnings at $18.96 EPS and FY2028 earnings at $21.87 EPS.

Royal Caribbean Cruises (NYSE:RCL - Get Free Report) last posted its quarterly earnings results on Thursday, April 30th. The company reported $3.60 earnings per share for the quarter, beating the consensus estimate of $3.20 by $0.40. The firm had revenue of $4.45 billion for the quarter, compared to analyst estimates of $4.46 billion. Royal Caribbean Cruises had a return on equity of 45.25% and a net margin of 24.36%.Royal Caribbean Cruises's quarterly revenue was up 11.3% on a year-over-year basis. During the same period in the previous year, the firm earned $2.71 earnings per share. 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.

Several other analysts also recently issued reports on RCL. Wells Fargo & Company upped their price target on Royal Caribbean Cruises from $349.00 to $360.00 and gave the stock an "overweight" rating in a research note on Friday, May 1st. Deutsche Bank Aktiengesellschaft set a $296.00 target price on Royal Caribbean Cruises in a research note on Friday, May 1st. Stifel Nicolaus set a $410.00 target price on Royal Caribbean Cruises in a research note on Friday, May 1st. UBS Group decreased their target price on Royal Caribbean Cruises from $321.00 to $309.00 and set a "buy" rating for the company in a research note on Thursday. Finally, Jefferies Financial Group increased their target price on Royal Caribbean Cruises from $275.00 to $334.00 and gave the company a "hold" rating in a research note on Friday, January 30th. Fifteen investment analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. Based on data from MarketBeat.com, Royal Caribbean Cruises currently has an average rating of "Moderate Buy" and a consensus target price of $347.21.

Royal Caribbean Cruises Stock Performance

Shares of RCL stock opened at $252.42 on Tuesday. The company has a debt-to-equity ratio of 1.96, a current ratio of 0.20 and a quick ratio of 0.17. Royal Caribbean Cruises has a fifty-two week low of $232.60 and a fifty-two week high of $366.50. The stock's 50-day moving average is $271.97 and its two-hundred day moving average is $282.49. The firm has a market cap of $67.70 billion, a P/E ratio of 15.40, a PEG ratio of 0.91 and a beta of 1.77.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several large investors have recently added to or reduced their stakes in the company. Pinnacle Wealth Management Advisory Group LLC raised its holdings in shares of Royal Caribbean Cruises by 1.2% in the 4th quarter. Pinnacle Wealth Management Advisory Group LLC now owns 2,485 shares of the company's stock worth $693,000 after buying an additional 30 shares in the last quarter. AlphaStar Capital Management LLC boosted its position in shares of Royal Caribbean Cruises by 4.1% in the 4th quarter. AlphaStar Capital Management LLC now owns 779 shares of the company's stock worth $217,000 after purchasing an additional 31 shares during the last quarter. Kestra Investment Management LLC boosted its position in shares of Royal Caribbean Cruises by 2.6% in the 4th quarter. Kestra Investment Management LLC now owns 1,208 shares of the company's stock worth $337,000 after purchasing an additional 31 shares during the last quarter. Waterloo Capital L.P. boosted its position in shares of Royal Caribbean Cruises by 2.9% in the 4th quarter. Waterloo Capital L.P. now owns 1,191 shares of the company's stock worth $332,000 after purchasing an additional 34 shares during the last quarter. Finally, EWA LLC boosted its position in shares of Royal Caribbean Cruises by 4.6% in the 3rd quarter. EWA LLC now owns 794 shares of the company's stock worth $257,000 after purchasing an additional 35 shares during the last quarter. Institutional investors and hedge funds own 87.53% of the company's stock.

Insiders Place Their Bets

In related news, Director Arne Alexander Wilhelmsen sold 245,476 shares of the stock in a transaction that occurred on Friday, February 27th. The stock was sold at an average price of $311.54, for a total transaction of $76,475,593.04. Following the completion of the sale, the director owned 16,435,910 shares in the company, valued at $5,120,443,401.40. This represents a 1.47% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. In the last ninety days, insiders sold 1,451,597 shares of company stock worth $458,439,930. 6.44% of the stock is owned by corporate insiders.

Royal Caribbean Cruises Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, July 2nd. Investors of record on Wednesday, June 3rd will be paid a dividend of $1.50 per share. The ex-dividend date is Wednesday, June 3rd. This represents a $6.00 annualized dividend and a yield of 2.4%. Royal Caribbean Cruises's dividend payout ratio is presently 36.61%.

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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