Royal Caribbean shares rose Tuesday after the cruise operator beat second-quarter earnings estimates and raised its full-year earnings guidance, even as the stock initially dipped following a cut to its revenue outlook.
The company reported adjusted earnings of $4.21 per share, ahead of analyst expectations of $3.98, with the beat driven by strong last-minute booking demand and lower costs.
Royal Caribbean raised its full-year earnings guidance to a range of $17.73 to $17.87 per share, up from a prior range of $17.10 to $17.50, citing stronger-than-expected second-quarter performance and an improved outlook for the remainder of the year.
Shares rose 4.3% in early trading, adding to a 7.6% gain over the two prior sessions driven by a sharp drop in oil prices. The stock is now up 24% over the past three months, with investors treating the earnings report as a sign the rally has further room to run.
The market largely looked past a cut to the company’s full-year revenue growth outlook, which was lowered to 9% from a prior forecast of 10%. Once the earnings beat is factored in, the size of the full-year guidance increase looks relatively modest for the back half of the year, particularly given the tailwind from lower fuel prices, a dynamic that appeared to weigh on the stock briefly before it turned higher.
Cruise stocks have been highly sensitive to oil prices for much of 2026, making for a choppy year across the sector. Royal Caribbean is up more than 9% year to date through Monday’s close, while rivals Carnival and Norwegian Cruise Line are both down roughly 10% over the same period.
Norwegian is scheduled to report earnings Thursday, with Carnival expected to report in the fall.
