Royal Caribbean Shares Soar 15% on Strong 2026 Outlook

Core Insights - Royal Caribbean Group's stock surged over 15% intraday following the release of fourth-quarter earnings that met expectations and provided 2026 guidance surpassing analyst forecasts [1] Financial Performance - The company reported adjusted earnings per share (EPS) of $2.80 for the fourth quarter, aligning with consensus estimates, and generated revenue of $4.26 billion, also in line with forecasts [2] - For the full year 2025, Royal Caribbean achieved adjusted EPS of $15.64 on revenue of $17.9 billion, exceeding prior guidance due to stronger revenue and improved joint venture performance [2] Future Projections - For 2026, the company projected adjusted EPS between $17.70 and $18.10, above the consensus estimate of $17.66, anticipating double-digit growth in revenue and earnings supported by a 6.7% increase in capacity and continued yield growth [3] - Booking trends are strong, with the highest seven booking weeks in history recorded during Cyber Sales and the start of WAVE season, with approximately two-thirds of 2026 capacity already booked at record pricing levels [3] Expansion Plans - Royal Caribbean announced fleet expansion plans, including a new Discovery Class with two firm ship orders and options for four additional vessels, with the first delivery expected in 2029 [4] - Celebrity Cruises plans to expand its river cruise fleet to 20 ships by 2031 [4] - For the first quarter of 2026, adjusted EPS is projected between $3.18 and $3.28, with net yields expected to rise 2.4% to 2.9% year over year [4]