Royal Caribbean Group reported adjusted Q4 earnings per share of $2.80 on revenues of $4.26 billion, representing year-over-year growth of 72% in EPS and 13% in top-line. Net income for the quarter rose to $0.8 billion, up from $0.6 billion in Q4 2024, while adjusted EBITDA climbed to $1.5 billion. Gross margin yields increased 9.2% as-reported, and net yields improved 3.1%, driven by higher onboard spending and strong cruise occupancy, which reached a load factor of 108%.

Management issued guidance for full-year 2026 adjusted EPS of $17.70 to $18.10, implying double‐digit growth in both sales and earnings. Revenue is expected to benefit from a 6.7% increase in capacity, with two-thirds of 2026 cabins already booked at record pricing levels. Cyber Sales and the launch of WAVE season produced the company’s highest seven booking weeks ever, while guest spending on add-ons and pre-cruise purchases accounted for nearly half of onboard revenue in 2025.

Royal Caribbean has firm orders for two Discovery Class ships, with options for four more, set to debut beginning in 2029, and plans to double its Celebrity River Cruises fleet to 20 vessels by 2031. The company will invest approximately $5 billion in new initiatives over the next three years, including exclusive land-based destinations and cross-brand loyalty enhancements, supporting its multi-year Perfecta program targeting 20% earnings CAGR through 2027.

Despite a recent share rally of over 15% following the earnings release and outlook upgrade, Royal Caribbean’s net leverage ratio of 2.92x remains below peer averages, underpinning its investment-grade balance sheet. At roughly 22 times free cash flow, the stock is deemed fairly valued, leading analysts to assign a hold rating while acknowledging the company’s ability to sustain superior margins and leverage disciplined capital allocation through share repurchases and strategic growth investments.