Why Royal Caribbean Stock Is Rising After Revenue Guidance Cut -- Barrons.com

By Callum Keown

Royal Caribbean beat earnings estimates in the second quarter and hiked its full-year earnings guidance on Tuesday. The stock initially fell ahead of the open but was around 4% higher in early trading.

The cruise operator reported adjusted earnings per share of $4.21, ahead of analysts' expectations of $3.98. The beat was driven by strong close-in, or last-minute, demand and lower costs, the company said.

Royal Caribbean raised its full-year EPS guidance to between $17.73 and $17.87, up from a range of $17.10 to $17.50. The hike was down to better-than-expected performance in the second quarter and improved outlook for the rest of the year.

The stock was up 4.3% at $318.05 in early trading. The shares jumped 7.6% over the two previous sessions as oil prices fell sharply.

Investors are viewing the earnings report as a signal that the stock can keep sailing higher -- it's now up 24% over the past three months.

The market is also looking beyond a cut to the company's full-year revenue outlook -- it is now expecting a 9% jump down from previous guidance of 10%.

Once the 23 cents-per-share earnings beat is factored in, the full-year hike of 50 cents per share doesn't seem like a huge improvement in the second half, especially with lower fuel prices.

Those factors appeared to hamper the stock initially after the earnings dropped before the shares jumped higher.

The sector has been at the whim of oil prices for much of the year and as a result has had a challenging 2026. Royal Caribbean is up more than 9% this year through Monday's close but its biggest rivals Carnival and Norwegian Cruise Line are down around 10%.

Norwegian is set to report earnings on Thursday, with Carnival expected to report in the fall.

Write to Callum Keown at callum.keown@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

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July 28, 2026 10:59 ET (14:59 GMT)