Royal Caribbean Cruises (RCL) Q2 2026 earnings summary

Executive summary

• Q2 2026 results exceeded expectations, with revenue up 6–6.5% year-over-year to $4.8–$4.83 billion and adjusted EPS at $4.21, driven by strong demand, high guest satisfaction, and robust booking trends for 2026 and 2027 at record pricing.

• Over $600 million was returned to investors in Q2 via dividends and share repurchases, with $1 billion repurchased in the first half under a $2 billion buyback program.

• Capacity increased 5–6.6% year-over-year, with Q2 load factor at 110% and 2.4 million guests served.

• Ongoing geopolitical conflict in the Middle East modestly impacted near-term bookings, especially for Europe.

• Strategic investments in technology, loyalty, and new destinations, including the launch of Legend of the Seas, are driving higher retention and onboard spending.

Financial highlights

• Adjusted EPS for Q2 was $4.21, $0.33 above guidance, with net income at $1.13 billion and adjusted EBITDA at $1.8–$1.83 billion (37.9% margin).

• Net yield grew 1.2% year-over-year in constant currency, with Q2 net yields at $288.95 per APCD and gross margin yield at $134.11 per APCD.

• Operating cash flow was $1.9 billion for Q2 and $3.7 billion for the first half.

• Net cruise costs per APCD, excluding fuel, rose 3.9% year-over-year, with Q2 at $158.42.

• Q2 diluted EPS was $4.20, down from $4.41 in Q2 2025.

Outlook and guidance

• Full-year 2026 net yield growth expected at 1.75%–2.25% in constant currency, with capacity up 6.6%.

• Adjusted EPS for 2026 guided to $17.73–$17.87, representing double-digit growth.

• Total revenue for 2026 expected to grow 9% year-over-year.

• Capital expenditures for 2026 expected at $4.7 billion, mainly for new ships.

• Q3 2026 guidance: 8.5% capacity growth, adjusted EPS of $6.26–$6.36.