Royal Caribbean Lowers Annual Profit Guidance Despite Revenue Growth
The cruise operator reported first-quarter revenue of $4.5 billion, an 11% increase from the prior year.
Royal Caribbean Cruises (RCL), the cruise operator, reported first-quarter revenue of $4.5 billion, an 11% increase year-over-year.
The results arrived as the company adjusted its expectations for the remainder of the year. Royal Caribbean lowered its full-year 2026 adjusted earnings per share guidance in April to a range of $17.10 to $17.50, down from the $17.70 to $18.10 range it issued in January.
Adjusted EPS for the first quarter was $3.60, up from $2.71 in the same period last year. This growth occurred alongside a slight deceleration in pricing power, as net yields for the quarter increased 3.6% as-reported, compared to a 3.8% increase for the full year 2025.
Operating efficiency improved as the company managed its overhead. Gross cruise costs per available passenger cruise day decreased 1.0% as-reported in the first quarter, reversing a 2.7% increase recorded in the third quarter of 2025.
Capacity continued to expand as the company grew its fleet to 71 ships by July, up from 69 ships in February. To support this growth and its loyalty ecosystem, the company introduced the Royal ONE credit card during the first quarter.
Royal Caribbean also announced the appointment of Tara Bunch, a former senior vice president at Airbnb, to its board of directors on July 20.