Shares of Royal Caribbean Group (NYSE:RCL) slid 7.9% on Tuesday after the cruise line operator reported third-quarter results that topped earnings expectations but came in slightly below revenue forecasts.
The company posted adjusted earnings per share of $5.75, ahead of analyst estimates of $5.69. However, revenue totaled $5.14 billion, missing the $5.17 billion consensus estimate.
During the quarter, Royal Caribbean welcomed 2.5 million guests on its ships — a 7% year-on-year increase — with load factors climbing to 112%, up one percentage point from the same period in 2024. Net yields rose 2.8% as reported (2.4% in constant currency), supported by stronger ticket pricing and increased onboard spending.
Royal Caribbean also lifted its full-year 2025 adjusted EPS guidance to between $15.58 and $15.63, representing a 32% annual increase but still slightly under the analyst consensus of $15.69. The company pointed to “higher than expected close-in demand and lower costs” as key drivers of its quarterly performance.
“We continue to see strong momentum across our business, powered by accelerated demand, growing loyalty, and guest satisfaction that is at all-time highs,” said Jason Liberty, President and CEO of Royal Caribbean Group. “Looking ahead, while it’s still early in the planning process, our strong booked position gives us confidence for 2026 and beyond.”
The cruise line also unveiled plans for Royal Beach Club Santorini, a new exclusive destination scheduled to open in summer 2026. This addition will expand its land-based destination portfolio from two to eight by 2028.
For the fourth quarter, Royal Caribbean expects net yields to grow between 2.6% and 3.1% on a reported basis. Adjusted EPS is projected to land between $2.74 and $2.79. The company said recent adverse weather and the extended temporary closure of its Labadee, Haiti location will have only a minimal impact on Q4 results.