Royal Caribbean's stock soars as people keep booking cruises at a record pace

By Tomi Kilgore

Cruise operator provides a full-year profit outlook above Wall Street forecasts, and announces deals to expand its ocean- and river-cruise fleet

Royal Caribbean's stock rallied toward a three-month high after the cruise operator's full-year profit and revenue outlooks were above Wall Street forecasts.

Shares of Royal Caribbean rocketed toward their biggest gain in years Thursday, after the cruise-ship operator provided an upbeat full-year earnings outlook, saying demand for future cruises is as strong as it has ever been.

The company also reported yet another quarter of profit and revenue growth, matching Wall Street expectations, as the so-called wave booking season, when cruise promotions peak during the first quarter, has gotten off to "a great start." And agreements with a shipyard in France were announced to expand Royal Caribbean's fleet of ships, including those for its river vessels.

The stock (RCL) shot up 16.4% in recent morning trading, toward its biggest one-day gain since it rallied 16.7% on Oct. 4, 2022. It was also headed for the biggest post-earnings rally in five years, based on available FactSet data back to February 2021.

For 2026, the company expects adjusted earnings per share, which excludes nonrecurring items, of $17.70 to $18.10. The entire range is above the current average analyst EPS estimate compiled by FactSet of $17.65.

Revenue growth for this year is expected to be in the double-digit percentage range, while the FactSet revenue consensus of $19.55 billion implies 9% growth.

In terms of bookings, the company said that, since the onset of "wave" season, it has witnessed the highest seven booking weeks in its history. About two-thirds of its 2026 cruise capacity is already booked - and at record rates.

"We're very pleased by the strength we're seeing across our portfolio as consumers continue to prioritize our vacation experiences," said CFO Naftali Holtz.

For the fourth quarter, net income rose 36.3% from a year ago to $754 million, and adjusted EPS increased to $2.80 from $1.63. The FactSet consensus was also $2.80.

Revenue grew 13.2% to $4.26 billion, also in line with expectations. Revenue has increased every quarter since the pandemic halted all cruises.

Passenger-ticket revenue was up 13% to $2.94 billion, while onboard and other revenue climbed 14% to $1.32 billion.

Occupancy for the quarter was 107.8%, up from 107.6% a year ago, but down from 112.1% in the third quarter. Occupancy would be 100% if each cabin had two people - and it can surpass 100% if some cabins have more than two guests.

The earnings results and outlook were providing a nice boost to shares of its rivals, as Carnival's stock (CCL) surged 6.6% in recent trading, Norwegian Cruise Line Holdings shares (NCLH) jumped 8% and shares of Viking Holdings (VIK) rose 3.6%.

Earlier Thursday, Royal Caribbean said it entered into agreements with a shipyard in Saint-Nazaire, France, to construct its Discovery Class cruise ships. The agreements are for two ships - and options with four more ships - with the first set to launch in 2029.

The company's Celebrity Cruises business said it committed to 10 new ships, which will expand its river-cruise fleet to 20 ships by 2031.

"Today's announcements mark an exciting step forward in expanding our vacation portfolio across ocean and river," said CEO Jason Liberty.

-Tomi Kilgore

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01-29-26 1059ET