| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 62 | 16.0x | 17.8x | Around median | |
Growth | 71 | 8.7% | 7.1% | Top tier | |
Quality | 73 | 16.0% | 4.5% | Top tier | |
Safety | 42 | 3.2x | 2.6x | Around median | |
Capital Return | 42 | 1.35% | 2.12% | Around median | |
Momentum | 35 | -11.1% | 2.9% | Bottom tier | |
Sentiment | 63 | 15 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Royal Caribbean Cruises Ltd. operates a cruise vacation platform that includes the Royal Caribbean, Celebrity Cruises, and Silversea brands, generating revenue from cruise tickets and experience-related spending onboard and before sailing. In fiscal Q2 2026, the group delivered 2.4 million vacations, more than 90% of guests used its app, and more than half of onboard activity revenue was purchased before sailing; these channels help the company increase spending and repeat bookings through its loyalty program and the co-branded Royal ONE card.
In fiscal Q2 2026, revenue reached $4.83 billion, representing 6% year-over-year growth, and adjusted earnings per share reached $4.21, exceeding the midpoint of management's guidance by $0.33. The company recorded earnings before interest, taxes, depreciation, and amortization of $1.8 billion and a margin of 38%, with capacity growth of 5% and net yield growth of 1.2%, which was 100 basis points above its guidance.
EDGAR data shows that fiscal Q1 2026 revenue reached $4.5 billion, gross profit was $2.2 billion, net income was $941 million, and earnings per share were $3.48. On a trailing-twelve-month basis in fiscal 2026, revenue reached $18.4 billion, gross profit was $9.1 billion, and net income was $4.5 billion, compared with revenue of $17.9 billion and net income of $4.3 billion in fiscal 2025.
The average analyst price target is $348.09, with a wide range between $296 and $415 and a consensus rating of "Buy"; the average is below the high of $366.5 within the 52-week range of $232.1–$366.5. The upper end reflects optimism about continued earnings and booking growth, while the lower end is consistent with debt risks, weak fiscal Q3 2026 yields, and European geopolitical exposure; the available data does not provide a valid price-to-earnings ratio for adding another valuation comparison.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Fiscal Q2 2026 revenue reached approximately $4.83 billion, representing 6% year-over-year growth, and adjusted earnings per share reached $4.21. Net yield grew 1.2% and exceeded guidance by 100 basis points due to close-in demand and strong onboard spending, particularly in Caribbean. Earnings before interest, taxes, depreciation, and amortization also reached $1.8 billion at a 38% margin, while operating cash flow reached $1.9 billion.
Management expects adjusted earnings per share of between $17.73 and $17.87 in fiscal 2026, representing growth of 14%. It also expects revenue growth of 9%, with a 6.6% increase in capacity and net yield growth of between 1.75% and 2.25%. Net cruise costs excluding fuel are expected to remain approximately flat, while annual fuel expense was estimated at approximately $1.3 billion, and 58% of the remaining fiscal 2026 requirements were hedged at prices well below the market prices cited during the call.
Management said on July 28, 2026 that the ongoing conflict in Middle East had a modest impact on bookings for some European cruises and on destination preferences. Europe represents approximately 14% of fiscal 2026 capacity and 28% of fiscal Q3 2026 capacity, so the impact is concentrated in that quarter. The company expects net yield to be approximately flat in fiscal Q3 2026, followed by renewed growth acceleration in fiscal Q4 2026, supported by comparisons, deployment mix, and dry-dock timing.
Automated analysis for informational purposes only — not investment advice.
More than 90% of guests use the company's app, and its monthly active user count has increased fivefold since 2019. More than half of onboard activity revenue was purchased before sailing, and the company uses AI-driven models to manage approximately 20 million price points and optimize yield. Since April 2026, the Royal ONE card has exceeded enrollment and spending expectations, while Points Choice and Status Match added more than 500 thousand new loyalty program enrollments.
The company ended fiscal Q2 2026 with liquidity of $6.9 billion and leverage below three times. In July 2026, it increased the capacity of its revolving credit facility by $250 million to $6.6 billion, but it also began refinancing $1.25 billion of debt according to an August 24, 2026 report. During the quarter, it paid $404 million in dividends and repurchased 0.8 million shares, with $805 million remaining under the repurchase authorization.
Legend of the Seas introduced Icon Class to Europe for the first time, after which the company planned to return it to Caribbean in fiscal Q4 2026. Management described Royal Beach Club in Nassau as its highest-rated experience in Bahamas and expected Perfect Day visitors to approach 4 million guests during fiscal 2026. Celebrity River expands the ecosystem into river cruises, and management said its realized pricing was higher than that of the competing group mentioned during the call and that Royal Caribbean guests had shown interest in it.
