Cruise Line Stocks Rally After Royal Caribbean Earnings, Strong 2026 Outlook Lift Sector
c: RCL
Cruise line stocks rose early Thursday after Royal Caribbean Group reported solid fourth-quarter earnings and issued upbeat forward guidance, reinforcing confidence in long-term cruise demand.
Royal Caribbean shares surged in early trading, Viking Holdings rebounded from technical support levels, and Carnival Corporation stock moved higher alongside the broader group.
Royal Caribbean posted a 72% increase in adjusted earnings to $2.80 per share, matching FactSet expectations. Revenue climbed nearly 12% to $4.26 billion, also in line with forecasts. Performance metrics highlighted continued pricing power and onboard spending, with gross margin yields rising 9.2%, net yields increasing 3.2%, and the company reporting a load factor of 108% for the quarter.
Forward booking trends underscored sustained demand. The company said roughly two-thirds of its 2026 capacity is already booked, within historical ranges but at record pricing levels. Nearly half of projected 2025 revenue has already been secured through advance bookings. Royal Caribbean also noted that for 2026 sailings, a higher percentage of booked guests are making early pre-cruise purchases compared with last year, supporting revenue visibility.
Looking ahead, Royal Caribbean forecast adjusted earnings of $17.70 to $18.10 per share for 2026, modestly above the FactSet consensus estimate of $17.65. For the first quarter, the cruise operator expects net yields to increase between 2.4% and 2.9% and projected adjusted earnings of $3.18 to $3.28 per share, well ahead of analysts’ expectations of $2.93.
The company also outlined major fleet expansion plans. Royal Caribbean announced a series of agreements with Chantiers de l’Atlantique in Saint-Nazaire, France, to secure construction capacity for its upcoming Discovery Class ships. The agreement includes two firm ship orders with options for four additional vessels. The first Discovery Class ship is expected to debut in 2029, followed by a second delivery in 2032.
In a separate announcement, Royal Caribbean committed to building 10 new ships to support its river cruise strategy, expanding its river fleet to 20 vessels by 2031. The company plans to launch its river vacation offerings in 2027, marking a significant expansion beyond its traditional ocean cruise business.
Investors responded positively to the combination of strong earnings, robust booking trends, and long-term growth initiatives, sending cruise stocks broadly higher in early market action.