Norwegian Cruise Q2 revenue meets estimates
NCLH•Outlook
- Norwegian expects full-year 2026 Adjusted EPS of about $1.50
- Company sees Q3 2026 Adjusted EPS at $0.90
- Company expects full-year 2026 Net Yield to decline about 5% versus 2025
Result drivers
- Capacity increase - Q2 revenue growth was primarily driven by increased Capacity Days, according to the company
- Cost controls - Company identified $100 mln in additional expected annualized run-rate savings, mainly from technology vendor consolidation and SG&A, supporting profitability
- Soft demand - Company said demand at its Norwegian Cruise Line brand remains pressured due to execution challenges and the ongoing conflict in the Middle East
Analyst coverage
- The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 15 "hold" and 1 "sell" or "strong sell"
- The average consensus recommendation for the hotels, motels & cruise lines peer group is "buy"
- Wall Street's median 12-month price target for Norwegian Cruise Line Holdings Ltd is $22.00, about 6% above its July 29 closing price of $20.75
- The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 8 three months ago
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