Best seven booking weeks in company history to start 2026
RCL delivered a strong FY2025 beat-and-raise quarter, with record demand and pricing momentum carrying into 2026. Management guided EPS growth of ~14% for 2026, despite a 6.7% capacity increase and temporary headwinds from dry dock timing and new private destination ramp costs. FY2025 EPS at $15.64, +33% YoY, with Q4 EPS of $2.80, beating guidance by ~$0.10; total revenue of ~$18B.
Buzzberg readBest seven booking weeks in company history to start 2026RCL delivered a strong FY2025 beat-and-raise quarter, with record demand and pricing momentum carrying into 2026. Management guided EPS growth of ~14% for 2026, despite a 6.7% capacity increase and temporary headwinds from dry dock timing and new private destination ramp costs. FY2025 EPS at $15.64, +33% YoY, with Q4 EPS of $2.80, beating guidance by ~$0.10; total revenue of ~$18B.Read full analysisCollapse analysis
RCL delivered a strong FY2025 beat-and-raise quarter, with record demand and pricing momentum carrying into 2026. Management guided EPS growth of ~14% for 2026, despite a 6.7% capacity increase and temporary headwinds from dry dock timing and new private destination ramp costs. FY2025 EPS at $15.64, +33% YoY, with Q4 EPS of $2.80, beating guidance by ~$0.10; total revenue of ~$18B.
FY2026 EPS guide of $17.70-$18.10, ~14% growth at midpoint; net yield growth 1.5-3.5%, capacity +6.7%.
Best 7 booking weeks in company history during WAVE; ~2/3 of 2026 inventory booked at record rates.
New builds: Celebrity River Cruises expanded to 20 ships by 2031; Royal Caribbean announces new Discovery-class (2 firm + 4 options), smaller than Icon-class in a deliberate departure.
Revenue$4.259B
reported
EPS$2.80
reported
Gross margin36.72%
reported
Op margin21.91%
reported
What changed this quarter
01
Demand
Best seven booking weeks in company history to start 2026
Management emphasized strong demand, record booking weeks, and successful execution, with a forward-looking stance on growth and market share gains.
02
Destinations
Royal Beach Club becomes top-rated Nassau experience in four weeks
FY2025 EPS at $15.64, +33% YoY, with Q4 EPS of $2.80, beating guidance by ~$0.10; total revenue of ~$18B.
03
Demand
80% of river cruise bookings are existing customers new to river cruising
Best seven booking weeks in company history to start 2026. Management emphasized strong demand, record booking weeks, and successful execution, with a forward-looking stance on growth and market share gains.
04
Pricing
Caribbean yields expected to grow despite industry capacity increase
Best 7 booking weeks in company history during WAVE; ~2/3 of 2026 inventory booked at record rates.
AI, capex & demand read
AI
Platform & monetization
Management discussed embedding AI across commercial and operational areas to improve guest personalization, reduce friction, and drive efficiency, viewing it as a foundational advantage that enhances the guest experience and supports margin expansion.
Demand
Bookings & conversion
Best seven booking weeks in company history to start 2026. Management emphasized strong demand, record booking weeks, and successful execution, with a forward-looking stance on growth and market share gains.
Capex
Investment and capacity
Management is investing $5 billion in 2026, including $1.8 billion in non-ship capital, for strategic growth initiatives such as private destinations (Santorini, Cozumel, Perfect Day Mexico) and fleet modernization. They also announced expansion of Celebrity River Cruises with 10 additional ships and a new Discovery-class order for Royal Caribbean.
Tone · Confident
Management emphasized strong demand, record booking weeks, and successful execution, with a forward-looking stance on growth and market share gains.
Supply-chain alpha
A1
Management built a 200 basis point cost headwind into 2026 guidance from private destinations ramp-up (Royal Beach Club Paradise Island, Santorini, Cozumel, Perfect Day Mexico) without corresponding PCI increases — implies pre-opening costs are being expensed this year.
“There are also about 200 basis points of cost headwinds, mainly related to our private destinations portfolio ramp-up, that come without a PCB increase.”
Dry dock timing will suppress Q2 yield comparisons because more premium/high-yielding hardware (SilverSea ships) is out of service this year — a supply-side distortion that will reverse in H2.
“It is also worth noting that on average, we have more premium hardware in Dry Dock this year when compared to last year, hurting yield comparisons.”
EU ETS scope expands to 100% of emissions on European itineraries in 2026 (from 70% in 2025) — a regulatory cost increase, but 60% of fuel consumption is hedged and fuel efficiency improves 4% per APCD, partially offsetting the impact.
“the scope of the European Union Emissions Trading System, or EU ETS, will extend in 2026 to cover 100% of emissions associated with our European itineraries, from 70% in 2025.”
RCL is not concerned about Caribbean overcapacity despite industry chatter — management states Caribbean demand trends are similar to other regions, with pricing up year-over-year and positive yields expected in 2026 even with 8% capacity growth in the region.
RCL's new Discovery-class ships are smaller than Icon-class s—a departure from the 'bigger is better' trend. Michael Bailey explicitly states assumptions in social media about size/capacity are 'inaccurate', suggesting the class is a deliberate product architecture shift.
“Many of the assumptions that are currently out there in social media, et cetera, in terms of size, capacity, et cetera, are probably, it's fair to say, inaccurate.”
RCL's new Discovery-class ships are smaller than Icon-class s—a departure from the 'bigger is better' trend. Michael Bailey explicitly states assumptions in social media about size/capacity are 'inaccurate', suggesting the class is a deliberate product architecture shift. — If RCL moves to smaller ships on select routes, it can access ports/destinations inaccessible to mega-ships — expanding addressable itineraries and potentially stressing competitors who bet solely on mega-ship scale.
RCL is not concerned about Caribbean overcapacity despite industry chatter — management states Caribbean demand trends are similar to other regions, with pricing up year-over-year and positive yields expected in 2026 even with 8% capacity growth in the region.