Royal Caribbean Cruises Ltd. (RCL) saw its shares surge 8.15% during intraday trading on Thursday. The sharp upward move follows the release of the company's first-quarter financial results, which significantly exceeded market expectations and indicated a rebound in consumer demand for cruises.
The cruise operator reported adjusted earnings per share of $3.60 for Q1 2026, handily beating the analyst consensus estimate of $3.19. Revenue grew 11.3% year-over-year to $4.45 billion, driven by higher pricing and strong onboard spending. Importantly, the company noted that bookings for Mediterranean and West Coast of Mexico itineraries, which had moderated in March and early April due to geopolitical developments related to the Iran conflict, have now recovered and are currently running at a pace higher than the same time last year.
While Royal Caribbean lowered its full-year adjusted EPS guidance to a range of $17.10 to $17.50, down from a prior forecast of $17.70 to $18.10, primarily due to higher anticipated fuel costs of approximately $1.3 billion, the new range still sits above the Wall Street consensus estimate of $17.09. Analysts suggested the results and updated outlook were "not worse" than investor fears, providing relief after the stock had declined significantly since the onset of Middle East tensions, and were "good enough" to drive the share price higher.
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