RCL’s Q1 2026 adjusted EPS of $3.60 tops estimates by 12.59%, with net income up 28.9% to $941 million.
Royal Caribbean Cruises reported Q1 2026 adjusted earnings per share of $3.60, exceeding consensus estimates by 12.59%, as net income surged 28.9% year-over-year to $941 million. Adjusted EBITDA margin expanded 310 basis points to 38.2%, driven by strong cruise demand and capacity growth.
The company guided full-year 2026 EPS to a range of $17.10-$17.50, aligning with its Perfecta Program’s 20% adjusted EPS CAGR target through 2027. Revenue grew 11.33% to $4.452 billion, marking the fourth consecutive quarter of earnings beats. Despite headwinds from Mexico’s environmental permit denial and higher fuel costs, RCL trades at 15x forward earnings.
Shares have underperformed recently, down 7.69% year-to-date and 3.59% over the past month, hitting a 52-week low of $232.48 on May 20. The stock remains 6% below its 52-week high of $362.21, with a five-year return of 216.4%.
Analysts see potential upside, with a price target of $319 implying 24.56% growth from the recent close of $256.10.