Royal Caribbean Targets 2026 Adjusted EPS of Up to $18.10

Royal Caribbean Group said its adjusted earnings per share rose to $15.64 in 2025, exceeding prior guidance as stronger-than-expected revenue and improved results from joint ventures lifted results.

The company reported full-year 2025 earnings per share of $15.61 on a GAAP basis and said it is targeting adjusted EPS of $17.70 to $18.10 in 2026, which would represent a 14% year-over-year increase. Royal Caribbean also pointed to early Wave season momentum, saying the January-to-March booking period has produced the strongest multi-week stretch in its history.

2025 results: revenue growth, higher yields, and cost discipline

For 2025, Royal Caribbean reported total revenue of $17.9 billion and net income of $4.3 billion. Adjusted EBITDA for the year was $7.0 billion.

Operational metrics showed higher pricing alongside efficiency improvements. Gross Margin Yields increased 8.5% year-over-year on an as-reported basis, while Net Yields rose 3.8% as-reported (3.7% in constant currency). On costs, Gross Cruise Costs per available passenger cruise day (APCD) fell 0.6% as-reported, and net cruise costs excluding fuel were up 0.1% as-reported (down 0.1% in constant currency).

Jason Liberty, Chairman and CEO of Royal Caribbean Group, said, “2025 was an outstanding year, and the momentum is further accelerating into 2026.”

Fourth-quarter snapshot: higher revenue and a 108% load factor

In the fourth quarter of 2025, Royal Caribbean reported net income of $0.8 billion, or $2.76 per share, compared with $0.6 billion, or $2.02 per share, in the same quarter a year earlier. Adjusted net income was $0.8 billion, or $2.80 per share, versus $0.4 billion, or $1.63 per share, a year earlier.

Quarterly revenue was $4.3 billion and adjusted EBITDA was $1.5 billion. The company reported a load factor of 108% for the quarter.

Yields increased year-over-year in the quarter, with Gross Margin Yields up 9.2% as-reported and Net Yields up 3.1% as-reported (2.5% in constant currency). Costs per APCD declined, including a 4.5% reduction in Gross Cruise Costs per APCD and a 5.8% decrease in net cruise costs excluding fuel per APCD (6.3% down in constant currency).

2026 outlook: higher capacity and an itinerary-related headwind in China

Royal Caribbean said its 2026 outlook assumes higher capacity, yield improvements, and continued demand for its vacation products. The company expects double-digit growth in both revenue and adjusted EPS in 2026, supported by a planned 6.7% increase in capacity.

• Earnings guidance: Adjusted EPS is expected to be $17.70 to $18.10 for 2026.
• Yield expectations: Net Yields are expected to increase 2.1% to 4.1% as-reported (1.5% to 3.5% in constant currency).
• China impact: The company said its outlook includes a 30-basis-point headwind tied to itinerary changes in China.
• Cost expectations: Net cruise costs excluding fuel per APCD are expected to be up 0.4% to 1.4% as-reported, and flat to up 1.0% in constant currency.

The company framed its guidance within Perfecta, its multi-year financial program targeting 20% compound annual earnings growth from 2024 through 2027 and return on invested capital in the high teens by 2027.

Early 2026 view: first-quarter yield and cost assumptions

For the first quarter of 2026, Royal Caribbean expects Net Yields to rise 2.4% to 2.9% as-reported (1.0% to 1.5% in constant currency), again reflecting the 30-basis-point impact from China itinerary modifications.

Net cruise costs excluding fuel per APCD are expected to increase 1.7% to 2.2% as-reported (0.9% to 1.4% in constant currency). Based on current assumptions for fuel, interest rates, and currency, the company guided to first-quarter adjusted EPS of $3.18 to $3.28.

Wave season bookings: record multi-week stretch and higher pricing

Royal Caribbean said Wave season is off to a historic start, citing a record stretch driven by Cyber Sales and early-year booking activity. Liberty said, “WAVE is off to a great start,” adding that the company continues to see a “strong and growing preference” for its brands.

As of the earnings update, Royal Caribbean said it had approximately two-thirds of its 2026 capacity booked, with booked pricing at record levels. The company also said it is seeing elevated close-in demand.

Naftali Holtz, Chief Financial Officer of Royal Caribbean Group, said, “We’re very pleased by the strength we’re seeing across our portfolio as consumers continue to prioritize our vacation experiences.” He added that net yield growth has been supported by key products including Caribbean itineraries.

Guest spending: more booked in advance and increasingly digital

Royal Caribbean said guest spending onboard and through pre-cruise purchases continues to run above prior years, citing higher participation at higher prices.

In 2025, nearly half of onboard revenue was booked before sailing, and 90% of those pre-cruise purchases were made through digital channels. Looking into 2026, the company said a larger share of booked guests has already purchased onboard offerings ahead of their cruise compared with the same point last year.

Expansion plans: Discovery Class ships and a larger river cruise platform

Alongside its earnings update, Royal Caribbean said it reached agreements with Chantiers de l’Atlantique in Saint-Nazaire, France, to secure construction capacity for a new Discovery Class platform for the Royal Caribbean brand. The agreements include two firm orders, with options for four additional ships.

The first Discovery Class ship is scheduled to debut in 2029, and the second is slated for delivery in 2032. Liberty said, “With Discovery Class, we’re building a new platform with Chantiers de l’Atlantique that will advance next-generation innovation and sustainability while taking our guests to extraordinary destinations around the world.”

The company also outlined plans for Celebrity River Cruises, a premium river offering scheduled to launch in 2027. Celebrity Cruises committed to 10 new river ships, which would expand the brand’s river fleet to 20 vessels by 2031.

Liberty said the river cruise expansion is intended to broaden Celebrity’s reach across “iconic rivers and historic cities” while maintaining what he described as the brand’s “elevated, guest-first experience.”

Market reaction and sector read-through

Royal Caribbean’s updated outlook and booking commentary were followed by a sharp rise in its stock price, with shares up nearly 19% in response to the earnings announcement. Other cruise companies also moved higher, with Carnival and Norwegian Cruise Line rising 8.4% and 10.2%, respectively.

Looking ahead, Royal Caribbean enters 2026 with the majority of next year’s inventory already sold, capacity growth planned, and product launches scheduled over the next several years, including the start of Celebrity River Cruises in 2027 and the debut of the first Discovery Class ship in 2029.

Frequently Asked Questions (FAQs)

What is Royal Caribbean Group’s Perfecta program?

Perfecta is Royal Caribbean’s multi-year financial program launched in 2024. The company has said it targets a 20% compound annual earnings growth rate from 2024 through 2027 and aims to achieve a high-teens return on invested capital by 2027.

How much of Royal Caribbean Group’s 2026 capacity is already booked?

Royal Caribbean said it has approximately two-thirds of 2026 capacity booked, within historical ranges, at record rates.

What is Royal Caribbean Group’s 2026 adjusted EPS guidance?

The company forecast 2026 adjusted earnings per share of $17.70 to $18.10.

When will the first Discovery Class ship enter service?

The first Discovery Class ship for the Royal Caribbean brand is scheduled to debut in 2029, with a second ship slated for delivery in 2032. The agreements also include options for four additional ships.

When does Celebrity River Cruises launch and how large will the fleet become?

Celebrity River Cruises is scheduled to launch in 2027. Celebrity Cruises committed to 10 new river ships, which the company said would expand the river fleet to 20 vessels by 2031.