Royal Caribbean raises 2026 profit forecast after strong Q1 earnings beat expectations

Royal Caribbean Cruises reported better-than-expected earnings for Q1 2026, with adjusted EPS of $3.60 surpassing estimates of $3.22 and revenue of $4.5 billion beating forecasts. The company raised its full-year adjusted EPS guidance to $17.10-$17.50, citing higher fuel costs and geopolitical impacts offset by lower non-fuel costs and share buybacks. Strong booking volumes and onboard spending drove an 11% revenue increase year-over-year. Despite a brief slowdown in bookings due to geopolitical issues, demand has recovered, supporting expectations of continued double-digit revenue and earnings growth. The company also returned $1.1 billion to shareholders via buybacks and dividends in Q1.