Is Viking’s Growth Still Worth the Premium?

Key Points

• Viking beat Q2 revenue estimates and raised full-year guidance, but shares dipped on concerns about slowing pricing growth.
• Advance payments per cruise day are set to rise 4% in 2026, down from 10% in 2025, sparking fears of weaker pricing power.
• With strong bookings, rising capacity, and shares testing key support, a pullback may offer investors a buying opportunity.

Viking NYSE: VIK stock is down approximately 3% after the cruise line’s second-quarter earnings report. The company delivered revenue of $1.88 billion, ahead of the $1.84 billion analysts expected. Earnings per share of 99 cents missed estimates by one penny.

Both numbers were sharply higher year-over-year (YOY). Revenue was up 18%, and EPS was up 30%. The company reports strong bookings into 2026 as it expands into new destinations and continues increasing its fleet.

This reinforces the company’s positioning with a customer base with a strong travel demand, particularly in areas outside the United States.

Demand for the company’s premium cruises remains strong. However, early price action after earnings suggests that investors may be balking at the premium on VIK stock, which trades at around 46x earnings.

Demand Is Real for Viking Cruises 

Viking continues to be in a honeymoon period with investors. The stock is up 31% in 2025, including a gain of approximately 27% since its last earnings report. Since the company went public in 2024, the stock has been up nearly 100%.

Both numbers are stronger than the broader market and much higher than most consumer discretionary stocks. 

This could be a case of investors buying the stock as a proxy for the product. Viking Cruises caters to high-net-worth travelers and specifically notes that its cruises do not have children under 18, nor are there casinos on board.

The implication is that the day-to-day headlines would have less impact on the passengers on Viking ships. Nothing in the company’s earnings report suggests the narrative has changed.

The company reports its fleet is at 96% capacity for the remainder of 2025, taking into account a 12% increase in capacity through additional ships. Moreover, Viking has already hit 55% capacity for 2026, and an extra 9% capacity is scheduled to be added.

To give that more context, Viking now has $3.9 billion in advanced bookings for 2026. That’s more than half of the $5.6 billion the company is projecting for all of 2025.

Concerns About Pricing Power

By almost every measure, Viking delivered a great earnings report. However, with a stock that’s outperformed its sector and the broader market, investors will hunt for any blemish.

The one that they seem to have found is the company’s pricing power. This was expressed in advance payments per passenger cruise day. In 2026, that increase is 4%. However, that’s sharply down from the 10% the company delivered in 2025. That could suggest margin pressure even as future volumes and revenue grow.

On the other hand, Viking’s slower advance payment growth in 2026 could be viewed more as a normalization than a red flag. The 10% increase in 2025 reflected a unique mix of post-pandemic demand strength, limited capacity, and favorable itinerary mix. Those conditions were unlikely to repeat indefinitely.

If that's the case, then the deceleration does not necessarily imply weaker demand. That’s supported by the strong bookings and increased revenue guidance. 

However, the company is moving past the “easy gains” period and returning to more sustainable growth rates. For a stock that has outperformed, the market may treat this as a blemish, but fundamentally, Viking is still showing healthy demand and disciplined pricing.

Buy the Dip—It’s Not Likely to Last Long

In early trading on August 19, VIK stock was down nearly 3% (2.92%). Significantly, the stock trades near its 200-day simple moving average (SMA).

This is typically a line in the sand moment for institutional investors. If the stock breaks that support, a drop to $55 and perhaps even $53 is possible. A pullback to the mid-$50s could be an attractive entry point for investors who believe demand strength outweighs pricing concerns.

That would be welcome news to many investors who have been waiting for a healthy pullback in the company’s stock price. However, with a relative strength indicator of 32, the sell-off is already starting to look overdone.

Before taking a long position, investors will want to ensure the stock can reclaim the pre-earnings $60 mark. If it can, the stock could hit $65 or above.