Shares of Royal Caribbean Group (RCL) jumped 8.2% following the release of its fourth-quarter earnings and promising 2026 guidance. The cruise operator reported adjusted earnings per share of $2.80, meeting expectations, with revenues of $4.26 billion. For the full year 2025, adjusted EPS reached $15.64 on $17.9 billion in revenue, exceeding prior forecasts. This positive outlook has investors optimistic.

Looking ahead, Royal Caribbean projects adjusted EPS for 2026 to be between $17.70 and $18.10, surpassing analyst estimates. This optimistic forecast reflects strong demand, with approximately two-thirds of 2026 capacity already booked at record rates. The company expects double-digit revenue and earnings growth, supported by a 6.7% increase in capacity and yield improvements.

Jason Liberty, CEO, noted a robust start to the WAVE season, indicating ongoing consumer preference for the company's brands. Royal Caribbean also announced expansion plans, including a new Discovery Class and the addition of 10 ships to Celebrity Cruises' river cruise fleet by 2031. For Q1 2026, the company expects adjusted EPS between $3.18 and $3.28.