Zacks Research Has Negative Forecast for RCL Q2 Earnings

Royal Caribbean Cruises Ltd. (NYSE:RCL) – Zacks Research dropped their Q2 2027 earnings estimates for Royal Caribbean Cruises in a report released on Tuesday, August 11th. Zacks Research analyst Team now expects that the company will earn $4.96 per share for the quarter, down from their previous estimate of $5.64. Zacks Research currently has a “Hold” rating on the stock. The consensus estimate for Royal Caribbean Cruises’ current full-year earnings is $17.78 per share.

Royal Caribbean Cruises (NYSE:RCL) last posted its earnings results on Tuesday, July 28th. The company reported $4.21 earnings per share for the quarter, topping analysts’ consensus estimates of $3.98 by $0.23. The company had revenue of $4.83 billion during the quarter, compared to analyst estimates of $4.82 billion. Royal Caribbean Cruises had a net margin of 23.54% and a return on equity of 43.33%. Royal Caribbean Cruises’s revenue for the quarter was up 6.5% on a year-over-year basis. During the same period in the prior year, the business posted $4.38 earnings per share. Royal Caribbean Cruises has set its FY 2026 guidance at 17.730-17.870 EPS and its Q3 2026 guidance at 6.260-6.360 EPS.

Other equities research analysts have also recently issued research reports about the company. TD Cowen dropped their price objective on Royal Caribbean Cruises from $350.00 to $337.00 and set a “buy” rating for the company in a report on Friday, May 15th. BMO Capital Markets started coverage on Royal Caribbean Cruises in a report on Tuesday, July 7th. They set an “outperform” rating and a $370.00 target price for the company. Susquehanna raised their price target on Royal Caribbean Cruises from $350.00 to $372.00 and gave the stock a “positive” rating in a research note on Wednesday, July 29th. Truist Financial cut their price target on shares of Royal Caribbean Cruises from $318.00 to $297.00 and set a “hold” rating on the stock in a report on Friday, May 22nd. Finally, Wells Fargo & Company boosted their price objective on shares of Royal Caribbean Cruises from $361.00 to $388.00 and gave the company an “overweight” rating in a research report on Wednesday, July 29th. One analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $353.40.

Royal Caribbean Cruises Stock Up 0.8%

Shares of NYSE:RCL opened at $310.32 on Friday. The stock’s 50-day moving average is $302.35 and its 200 day moving average is $292.07. The company has a market cap of $82.99 billion, a PE ratio of 19.18, a P/E/G ratio of 1.05 and a beta of 1.77. The company has a debt-to-equity ratio of 2.03, a current ratio of 0.21 and a quick ratio of 0.19. Royal Caribbean Cruises has a 1 year low of $232.10 and a 1 year high of $366.50.

Hedge Funds Weigh In On Royal Caribbean Cruises

Several large investors have recently made changes to their positions in the business. Brighton Jones LLC grew its stake in shares of Royal Caribbean Cruises by 12.2% in the 4th quarter. Brighton Jones LLC now owns 1,312 shares of the company’s stock worth $303,000 after buying an additional 143 shares during the last quarter. Woodline Partners LP boosted its holdings in Royal Caribbean Cruises by 40.8% in the first quarter. Woodline Partners LP now owns 20,918 shares of the company’s stock worth $4,297,000 after acquiring an additional 6,063 shares in the last quarter. Arrowstreet Capital Limited Partnership bought a new stake in Royal Caribbean Cruises in the second quarter worth $1,762,000. Baird Financial Group Inc. boosted its holdings in Royal Caribbean Cruises by 5.4% in the second quarter. Baird Financial Group Inc. now owns 4,772 shares of the company’s stock worth $1,494,000 after acquiring an additional 243 shares in the last quarter. Finally, Brown Advisory Inc. purchased a new stake in shares of Royal Caribbean Cruises in the second quarter worth $357,000. 87.53% of the stock is currently owned by hedge funds and other institutional investors.

Insider Activity

In related news, CEO Michael W. Bayley sold 12,811 shares of Royal Caribbean Cruises stock in a transaction dated Wednesday, July 29th. The shares were sold at an average price of $315.99, for a total transaction of $4,048,147.89. Following the completion of the transaction, the chief executive officer directly owned 45,297 shares of the company’s stock, valued at $14,313,399.03. This trade represents a 22.05% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available at this hyperlink. 6.44% of the stock is currently owned by insiders.

Key Royal Caribbean Cruises News

Here are the key news stories impacting Royal Caribbean Cruises this week:

• Positive Sentiment: Near-term earnings estimates moved higher. Zacks Research raised its FY2026 EPS forecast to $17.73 from $17.13, close to the $17.79 consensus estimate. It also increased Q3 2026 EPS to $6.32 from $6.29 and Q4 2026 EPS to $3.60 from $3.37, suggesting improving expectations for the current operating outlook. Zacks Research estimates for Royal Caribbean
• Positive Sentiment: Future profit growth remains intact. Zacks lifted its FY2027 EPS estimate modestly to $19.10 from $19.06, raised Q3 2027 EPS to $5.99 from $5.50, and increased FY2028 EPS to $22.09 from $22.04. These revisions support the longer-term earnings-growth case, even if the changes are relatively small. Wall Street outlook for Royal Caribbean
• Neutral Sentiment: Analyst sentiment remains cautious. Zacks maintained a “Hold” rating. Royal Caribbean’s shares have continued to attract a cautiously optimistic Wall Street outlook despite trailing the broader market over the past year. At roughly 19 times earnings, investors may be balancing solid earnings momentum against the stock’s elevated valuation and high debt leverage. Mixed analyst opinions on Royal Caribbean
• Negative Sentiment: Several longer-term estimates were reduced. Zacks cut Q1 2027 EPS to $3.66 from $3.68, Q1 2028 EPS to $4.92 from $5.20, and Q2 2028 EPS to $5.49 from $5.65. The revisions suggest some uncertainty about the pace of earnings growth beyond 2027. Royal Caribbean earnings estimates
• Negative Sentiment: Jim Cramer’s preference for Viking Holdings over Royal Caribbean may pressure sentiment. Cramer has described Viking as one of his preferred cruise stocks, and Viking’s strong recent performance could encourage investors to favor that competitor over RCL. Jim Cramer prefers Viking over Royal Caribbean

Royal Caribbean Cruises Company Profile

Royal Caribbean Cruises (NYSE: RCL), operating as part of the Royal Caribbean Group, is a global cruise company that develops, markets and operates passenger cruise ships. The company operates multiple consumer-facing cruise brands that offer short- and long-duration itineraries and a range of onboard experiences. Its core activities include itineraries and voyage operations, guest services and hospitality, onboard food and beverage, entertainment and recreation programming, and the commercial activities needed to sell and support cruises through both direct and travel‑agent channels.

Royal Caribbean’s ships serve a broad set of geographies worldwide, regularly deploying vessels in the Caribbean, North America (including Alaska), Europe, Asia, Australia and South America.