10-Q · July 28, 2026
Royal Caribbean delivered Q2 revenue growth of 6.5% to $4.832 billion, driven by 4.9% capacity growth, higher pricing, and 11.0% growth in onboard and other revenue. However, operating margin declined 230 basis points…
Earnings analysis · 10-Q
RCL earnings analysis
Filed October 27, 2026 · Our reading of the company's report
The latest report
Royal Caribbean delivered a strong third quarter, with diluted EPS of $6.57 and revenue of $5.591 billion, including approximately 9% year-over-year revenue growth. Adjusted EBITDA reached $2.539 billion with a 45.4%…
Read full summary
Royal Caribbean delivered a strong third quarter, with diluted EPS of $6.57 and revenue of $5.591 billion, including approximately 9% year-over-year revenue growth. Adjusted EBITDA reached $2.539 billion with a 45.4% margin, and full-year 2026 Adjusted EPS guidance was raised to $17.85-$17.95. The principal material concern is the unresolved Havana Docks litigation, for which the company cites a prior approximately $112 million judgment and significant uncertainty following the May 2026 Supreme Court remand.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $6.57
What stood out
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EPS exceeded consensus
Third-quarter diluted EPS was $6.57, above the $6.38 consensus estimate, a $0.19 or approximately 3.0% beat.
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Revenue grew 9% year over year
Revenue was $5.591 billion, approximately 9% above the prior-year quarter, but about $15 million below the $5.606 billion consensus estimate.
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Strong EBITDA and raised outlook
Adjusted EBITDA was $2.539 billion, representing a 45.4% Adjusted EBITDA margin and supporting the increase in full-year Adjusted EPS guidance to $17.85-$17.95.
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Disclosure controls remained effective
Management reported effective disclosure controls as of September 30, 2026, providing reasonable assurance that required information is recorded, processed, summarized and reported timely.
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No share repurchases in quarter
No common stock repurchases occurred during the quarter ended September 30, 2026, preserving cash for other capital and liquidity needs.
What to watch
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Havana Docks liability remains uncertain
The Havana Docks litigation remains unresolved after the Supreme Court vacated the Eleventh Circuit ruling on May 21, 2026 and remanded the case. The original 2022 judgment awarded approximately $112 million, while the company had recorded a charge of approximately $130 million and later released approximately $124 million of the contingency.
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Potential litigation exposure
The filing states that the outcome of the Havana Docks Action is inherently unpredictable and that no assurance exists that the final outcome will be favorable; potential exposure includes statutory damages, interest, attorneys’ fees and costs.
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ERP implementation risk
The company implemented a new ERP system during the quarter ended March 31, 2026 and continues post-implementation monitoring and enhancements, creating ongoing execution and internal-control oversight requirements.
Management's outlook
Full-year 2026 Adjusted EPS guidance was raised to $17.85-$17.95. Management also expects full-year revenue growth of 9% year over year; no absolute revenue guidance range was provided.
Earlier filings 4
10-Q · April 30, 2026
Royal Caribbean Group's Q1 2026 results showed a solid performance with total revenues of $4.45 billion, representing an 11.3% increase year-over-year, although slightly below the consensus estimate. The company…
10-K · February 11, 2026
Royal Caribbean presents a fleet-led growth strategy with a combined fleet of 69 ships and aggregate capacity of approximately 179,720 berths as of December 31, 2025, and an active newbuild pipeline (12 ships on order).…
10-K · February 21, 2024
Royal Caribbean positions itself as a leading global cruise operator with 65 ships and approximately 157,575 berths as of December 31, 2023, emphasizing fleet renewal and innovation (three new vessels introduced in…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.