Royal Caribbean Cruises Ltd (NYSE:RCL) reported stronger-than-expected first quarter results and raised its full-year profit guidance, sending shares up about 7.5% on Thursday.
The cruise operator now expects adjusted earnings per share for 2026 in the range of $17.10 to $17.50, up from prior guidance, citing higher fuel costs and geopolitical impacts on certain itineraries, partly offset by lower non-fuel costs and share repurchases.
For the first quarter, Royal Caribbean reported adjusted earnings per share of $3.60, ahead of analyst estimates of $3.22.
Revenue came in at $4.5 billion compared to expectations of $4.46 billion. Revenue rose 11% year-over-year, supported by record booking volumes and strong onboard spending.
Net income for the quarter was $0.9 billion, or $3.48 per share, while adjusted net income totaled $1.0 billion. Adjusted EBITDA reached $1.7 billion.
Royal Caribbean said bookings moderated briefly in March and early April for certain Mediterranean and West Coast of Mexico itineraries due to geopolitical developments, but have since recovered and are running above last year’s levels.
"Our strong first quarter results and record WAVE season demonstrate the exceptional appeal and compelling value proposition of our trusted brands, industry-leading ships, and destinations," Royal Caribbean CEO Jason Liberty said in a statement.
“We expect another year of double-digit revenue and earnings growth, driven by consumers' preference for our leading brands and expanding portfolio - all supported by our strong booked position, leading margin profile, and fortified balance sheet."
The company also returned about $1.1 billion to shareholders during the first quarter through $836 million in buybacks and $270 million in dividends.