Royal Caribbean Cruises raised its 2026 adjusted earnings per share guidance to a range of $17.73 to $17.87, implying 14% year-over-year growth, supported by stronger second-quarter performance and an improved outlook for the rest of the year. The company reported second-quarter adjusted earnings of $4.21 per share, beating the Zacks Consensus Estimate by 6.1%, while revenues of $4.83 billion topped expectations by 0.5%. Despite the earnings beat, net income attributable to Royal Caribbean fell 6.8% year over year, adjusted EBITDA margin contracted to 37.9% from 40.8%, and 2026 capital expenditures are expected to be approximately $4.7 billion. The stock trades at 4.23 times forward 12-month sales, above the Zacks sub-industry average of 2.74 times, leaving limited upside to a $339 price target based on a 4.44 times forward sales multiple. Royal Caribbean ended the quarter with total debt of $23.4 billion and approximately $12.8 billion of remaining contractual ship purchase obligations, balanced by $6.9 billion of liquidity and improving operating cash flow. The stock carries a Zacks Rank of 3, or Hold, reflecting a mixed setup where positive estimate activity and momentum are offset by premium valuation and sizable financial commitments.
Royal Caribbean Cruises LtdRaised 2026 EPS guidance and beat Q2 estimates, but offset by premium valuation and high debt.
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