Royal Caribbean Group NYSE:RCL, a global cruise operator, slipped approximately 1% in Tuesday's premarket trading after reducing its annual revenue-growth forecast. The company now expects 2026 revenue to increase approximately 9%, compared with its previous forecast of about 10%. Management said prolonged geopolitical tensions had produced a modest booking impact for certain itineraries, although overall cruise demand remained resilient.
Royal Caribbean raised its adjusted-earnings forecast to between $17.73 and $17.87 per share from its previous range of $17.10 to $17.50. The revision followed stronger-than-expected second-quarter performance and an improved outlook for the rest of the year. Revenue increased 6% to $4.83 billion, slightly exceeding the $4.82 billion analyst estimate, while adjusted earnings of $4.21 per share surpassed the $3.98 consensus. Early bookings for 2027 were also running above historical levels, including for itineraries affected by geopolitical disruption during 2026.
Quarterly fuel expenses increased 27% to $355 million as Middle East tensions placed additional pressure on operating costs. However, Royal Caribbean lowered its full-year fuel-cost forecast slightly to approximately $1.34 billion from $1.35 billion. The company's higher earnings forecast suggests onboard spending and cost controls may be helping absorb booking pressure and higher fuel expenses, even as anticipated revenue growth slows. Quarterly adjusted earnings exceeded expectations by $0.23 per share, while the midpoint of annual earnings guidance increased by $0.50. Investors may continue monitoring whether geopolitical disruptions remain limited to selected routes or begin affecting broader cruise demand.