Royal Caribbean Raises 2026 EPS to $17.70–18.10, Doubles River Cruise Fleet
Royal Caribbean shares jumped 5.46% after reporting Q4 adjusted EPS of $2.80 in line with estimates, driven by 3% net yield growth and 108% occupancy. The company lifted its 2026 adjusted EPS guidance to $17.70–18.10 while announcing a plan to double its river cruise fleet from 10 to 20 ships.
1. Q4 Performance and Stock Reaction
Royal Caribbean reported Q4 adjusted earnings of $2.80 per share, matching consensus, supported by net yield growth of just over 3% and occupancy reaching 108%. The announcement triggered a 5.46% intraday rally as investors responded to robust demand and strong onboard spending.
2. Upgraded 2026 Guidance
Management raised the full-year 2026 adjusted EPS forecast to a range of $17.70 to $18.10, exceeding current Street estimates, and expects net yield growth to outpace cost inflation, underpinning further margin expansion.
3. River Cruise Market Entry
Through its Celebrity brand, Royal Caribbean plans to double its river cruise fleet from 10 to 20 vessels, leveraging strong demand and positioning itself as a direct competitor to market leader Viking in the inland waterways segment.
4. Analyst Endorsement
JPMorgan maintained an Overweight rating and increased its price target to $368 from $357, citing ongoing booking strength, capacity additions and the broader recovery in travel and leisure as catalysts for further upside.