Royal Caribbean Lowers 2026 Revenue Forecast Amid Geopolitical Tensions, Raises Profit Outlook

Royal Caribbean on Tuesday lowered its annual revenue forecast, citing a booking slowdown for certain itineraries due to ongoing geopolitical tensions. The news was paired with an upgraded profit outlook, presenting a mixed picture for investors as the company navigates global uncertainty with resilient consumer demand.

Shares of the company were down approximately 1% in premarket trading following the announcement.

Revenue Trimmed, Profit Raised

Royal Caribbean adjusted its financial guidance for the full year, signaling both challenges and underlying strength in its operations. The company said it factored in a "modest booking impact for select itineraries" when updating its forecasts.

• Revenue Forecast: The cruise operator now expects 2026 revenue to grow by about 9%, a reduction from its previous projection of approximately 10%.
• Adjusted Profit Forecast: In contrast, the company raised its annual adjusted profit guidance to a range of $17.73 to $17.87 per share, up from the prior forecast of $17.10 to $17.50.

Consumer Strength and Cost Control

The upgraded profit forecast was attributed to stronger-than-expected second-quarter performance and effective cost management. Despite headwinds, the company noted that overall demand remains robust, with strong onboard spending helping to offset pressures from rising fuel costs.

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"Consumer demand for our vacation experiences is strong, and guests continue to demonstrate a desire to spend on memorable experiences with us," said Naftali Holtz, the company's chief financial officer. Holtz added that 2027 bookings were trending ahead of historical levels, even for itineraries impacted by this year's disruptions.

While quarterly fuel expenses rose 27% year-over-year to $355 million, Royal Caribbean slightly reduced its full-year fuel expense forecast to $1.34 billion from $1.35 billion.

Second-Quarter Beat

The revised outlook came as the Miami-based company reported second-quarter results that surpassed analyst expectations. The performance provided the foundation for the increased profit guidance for the remainder of the year.

• Q2 Revenue: $4.83 billion, a 6% increase from the prior year and slightly above the $4.82 billion consensus estimate, according to LSEG data.
• Q2 Adjusted EPS: $4.21 per share, beating analysts' estimates of $3.98 per share.