Royal Caribbean Cruises (RCL) Q1 2026 earnings summary

Executive summary

• First quarter 2026 results exceeded expectations, with revenue up 11% year-over-year and Adjusted EPS of $3.60, 33% above prior year and above guidance, driven by strong demand, record guest satisfaction, and robust onboard spending.

• Net income attributable to shareholders rose to $941 million, with adjusted net income at $975 million and adjusted EBITDA reaching $1.7 billion, margin 38.2%.

• Delivered over 2.5 million vacations at a 109% load factor, with strong booking volumes and onboard revenue per guest exceeding prior-year levels.

• Returned $1.1 billion to shareholders via $836 million in share repurchases and $270 million in dividends.

• Demand remains robust across brands, with bookings rebounding after temporary moderation due to geopolitical events.

Financial highlights

• Q1 2026 total revenue was $4.5 billion, up 11% year-over-year, with passenger ticket revenues of $3.0 billion and onboard revenues of $1.4 billion.

• Adjusted EPS was $3.60, up from $2.77 in Q1 2025, and adjusted EBITDA margin improved to 38.2% from 35.1% year-over-year.

• Operating cash flow was $1.8 billion, up from $1.6 billion in the prior year.

• Gross Margin Yields increased 6.9% as-reported; Net Yields rose 3.6% as-reported and 2.0% in constant currency.

• Net cruise costs excluding fuel per APCD were $130.32, with gross cruise costs per APCD down 1.0% as-reported.

Outlook and guidance

• Full-year 2026 Adjusted EPS expected between $17.10 and $17.50, up 11% year-over-year, with revenue projected to grow ~10%.

• Net Yield growth forecasted at 1.5%-2.5% in constant currency and 2.3%-3.3% as-reported; NCCx growth approximately 0%.

• Capacity for 2026 expected to rise 6.7% over 2025, with higher growth in Q1 and Q3.

• Q2 2026 Adjusted EPS guidance is $3.83-$3.93, with a $1 per share unfavorable impact from geopolitical and other factors.

• Capital expenditures for 2026 expected at $5 billion, mainly for new ships and destination initiatives.