Royal Caribbean Group (NYSE: RCL) shares increased 13.85% to $332 during intraday trading on Thursday, January 29, 2026. The market capitalization of the Miami-based cruise operator stands at approximately $90.54 billion following the release of its fourth-quarter and full-year 2025 financial results.
Latest Quarterly Results
For the fourth quarter ended December 31, 2025, Royal Caribbean reported total revenue of $4.26 billion, a 13.2% increase from $3.76 billion in the prior-year period. While the figure represents year-over-year growth, it missed the consensus estimate of $4.27 billion. Adjusted Earnings Per Share (EPS) for the quarter was $2.80, compared to $1.63 in the fourth quarter of 2024.
Revenue was driven by $2.94 billion in passenger ticket sales, up 13% year-over-year, and $1.32 billion from onboard and other sources, which grew 14%. The company reported a load factor of 108% for the quarter. Adjusted EBITDA reached $1.5 billion, while net yields increased 3.1% on a reported basis.
Full-Year 2025 Performance
For the full fiscal year 2025, Royal Caribbean recorded total revenue of $17.94 billion, up from $16.48 billion in 2024. Net income attributable to the company reached $4.27 billion, or $15.61 per diluted share, representing a significant increase from the $2.88 billion reported in the previous year. Operating cash flow for 2025 was $6.47 billion.
Financial Trends
Business and Operations Update
The company announced an expansion of its vacation portfolio, including the development of a new “Discovery Class” ship set to debut in 2029. Additionally, Celebrity River Cruises confirmed commitments for 10 more ships, aiming for a total fleet of 20 vessels by 2031. Management noted that approximately two-thirds of 2026 capacity is already booked at record pricing levels.
Reasons Behind Prior Market Volatility
Prior to the earnings release, RCL shares experienced a decline of approximately 9.3% from early January highs. This downward movement was attributed to 30 basis points of headwind from itinerary modifications in China amid regional tensions. Furthermore, renewed competitive concerns regarding “Wave Season” promotions and fluctuations in fuel and currency costs had weighed on investor sentiment throughout the month.
M&A and Strategic Moves
During the fourth quarter, Royal Caribbean completed a $1 billion share repurchase program initiated in February 2025, purchasing 1.8 million shares for $504 million in the final three months. The company currently has $1.8 billion remaining under its existing share authorization.
Equity Analyst Commentary
Market reactions were mixed leading into the report. Institutions recently raised their price target to $310, highlighting the company’s cost discipline and the expected ramp-up of new ships and private destinations in the second half of 2026.
Guidance and Outlook
Royal Caribbean issued 2026 adjusted EPS guidance in the range of $17.70 to $18.10, exceeding the $17.66 analyst consensus. The company expects double-digit revenue and earnings growth for the coming year, supported by a 6.7% increase in capacity. For the first quarter of 2026, the company forecasts adjusted EPS between $3.18 and $3.28.
Performance Summary
The results indicate that despite a marginal revenue miss in the fourth quarter and headwinds in the Chinese market, the 2026 outlook remains supported by record booking volumes and increased pre-cruise guest spending. The company remains on track to meet its “Perfecta” financial targets by 2027.