Royal Caribbean Cruises (RCL.US) has announced better-than-expected 2026 profit guidance, driven by continuously accelerating demand for cruise vacations. The company's financial results revealed a 13.2% year-over-year increase in fourth-quarter 2025 revenue to $4.26 billion, meeting market expectations and marking multiple consecutive quarters of revenue growth. Net profit surged 36.3% to $754 million, while adjusted earnings per share came in at $2.80, also aligning with market forecasts. As of the latest update, Royal Caribbean's stock was up more than 8% in Thursday's pre-market trading.
Concurrently, Royal Caribbean issued an optimistic full-year profit outlook, stating that future cruise demand is "unprecedentedly strong." The company anticipates 2026 adjusted earnings per share to be in the range of $17.70 to $18.10, surpassing the average analyst estimate of $17.65. It also projects full-year revenue growth to reach a double-digit percentage, while the analyst consensus of $19.55 billion implies an approximate 9% increase.
Royal Caribbean indicated that the so-called "wave season" – the first-quarter peak booking period – has gotten off to a "very strong start." The company reported experiencing the seven highest booking weeks in its history since the onset of the wave season. Currently, approximately two-thirds of its 2026 cruise capacity has already been booked, with reservation prices hitting record highs.
Chief Financial Officer Naftali Holtz expressed satisfaction, stating, "We are very pleased with the robust performance across our entire business portfolio, as consumers continue to prioritize our vacation experiences." Royal Caribbean also announced an agreement with a shipyard in Saint-Nazaire, France, to construct its new "Discovery Class" vessels.
The agreement includes firm orders for two ships, with options for an additional four, and the first vessel is expected to be launched in 2029. Furthermore, the company's Celebrity Cruises brand has committed to ordering 10 new ships, which will expand its river cruise fleet to 20 vessels by 2031.
Chief Executive Officer Jason Liberty commented on the developments, saying, "Today's announcements mark an exciting step forward in expanding our portfolio of ocean and river vacation offerings."