Royal Caribbean Gains 23% Upside Target, Q4 EPS $2.80; FY2026 EPS Forecast $17.70-$18.10
Tigress Financial raised Royal Caribbean’s price target to $425, implying a 23.21% upside from recent levels. The cruise operator reported Q4 adjusted EPS of $2.80 with 2.5% net yield growth and forecast 2026 adjusted EPS of $17.70–$18.10 alongside 108% occupancy rates.
1. Price Target Revision
Tigress Financial set a new price target of $425 for Royal Caribbean, representing a 23.21% potential upside from the recent trading level of around $345. This adjustment reflects increased confidence in the company’s revenue momentum and market share gains within the cruise industry.
2. Q4 Financial Results
In the fourth quarter, Royal Caribbean delivered adjusted earnings of $2.80 per share, matching expectations, while net yields grew by approximately 2.5% on a constant-currency basis. Reported net yields rose just over 3%, supported by higher ticket pricing and strong onboard spending, driving a nearly 6% stock rally.
3. 2026 Earnings and Occupancy Outlook
Management forecasts adjusted EPS of $17.70 to $18.10 for fiscal 2026 and projects occupancy levels of about 108%, indicating full-capacity sailings and continued demand strength. These projections underlie a market capitalization of roughly $94.2 billion and bolster investor sentiment for long-term growth.