RCL

Royal Caribbean Group reported strong earnings and guidance, with Q1 2026 net revenue increasing 11% year-over-year to $4.5 billion and net income of $950 million, and Q2 2026 earnings per share (EPS) of $4.21 beating analyst estimates. The company raised its full-year 2026 adjusted EPS guidance to $17.73-$17.87, with bookings for 2027 pacing ahead of historical levels at record prices. In September 2026, Royal Caribbean Group agreed to acquire a 50% stake in Sandals Resorts International for $3 billion, diversifying its revenue streams into land-based all-inclusive resorts. Geopolitical tensions, such as the Iran war, modestly impacted demand for Mediterranean and Mexican Riviera cruises in early 2026, leading to a slight reduction in the top end of the 2026 net yield forecast, and increased fuel costs are expected to impact costs by approximately 62 cents per share in 2026, though fuel purchases are significantly hedged. Several analysts, including Jefferies and BofA Securities, upgraded Royal Caribbean Group's stock rating to "Buy" in October 2026, citing improved occupancy, revenue per passenger, and positive yield outlooks, with a consensus "Moderate Buy" rating and an average price target of $357.45. In October 2026, there was unusually heavy bearish options activity, with traders purchasing a significantly higher volume of put options.