Royal Caribbean Cruises’ Q3 2025 Earnings: What to Expect

Core Insights - Royal Caribbean Cruises Ltd. (RCL) is a major player in the global cruise vacation industry with a market capitalization of $84.5 billion, operating multiple cruise brands and holding interests in several others [1] Financial Performance - RCL is expected to announce its third-quarter results on October 28, with analysts predicting an adjusted profit of $5.66 per share, reflecting an 8.9% increase from $5.20 per share in the same quarter last year [2] - For the full fiscal year 2025, RCL's adjusted EPS is projected to be $15.64, a significant increase of 32.5% from $11.80 in 2024, with further growth expected in fiscal 2026 to $18.20 per share, representing a 16.4% year-over-year increase [3] Stock Performance - RCL's stock has increased by 48% over the past 52 weeks, outperforming the Consumer Discretionary Select Sector SPDR Fund's 17% and the S&P 500 Index's 13.5% during the same period [4] - Following the release of mixed Q2 results, RCL's stock dropped over 5%, despite a 10.4% year-over-year revenue growth to $4.5 billion, which slightly missed market expectations [5] Earnings and Cash Flow - RCL's adjusted net income rose by 36.3% year-over-year to $1.2 billion, with an adjusted EPS of $4.38 exceeding consensus estimates by 6.8%, and operating cash flows increased by 16.3% year-over-year to $3.4 billion [6] Analyst Ratings - Analysts maintain a positive outlook on RCL, with a consensus "Moderate Buy" rating. Among 24 analysts, there are 16 "Strong Buys," one "Moderate Buy," and seven "Holds," with a mean price target of $358.69 indicating a 20.2% upside potential from current levels [7]