Royal Caribbean Soars on Record Earnings, Forecasts Smooth Sailing Ahead
Shares of Royal Caribbean Cruises Ltd. (NYSE: RCL) surged for a second consecutive session on Thursday, closing up 18.65% at $345.98. The rally was fueled by a blockbuster earnings report that far exceeded analyst expectations and a highly optimistic forecast for the year ahead.
The Miami-based cruise operator reported full-year 2025 attributable net income of $4.268 billion, a staggering 48% increase from the $2.877 billion recorded in 2024. Total revenues climbed 8.6% year-over-year to $17.9 billion, powered by an 8.7% rise in passenger ticket revenue and an 8% increase in onboard spending.
"2025 was a landmark year, and the momentum is only building," said Royal Caribbean Chairman and CEO Jason Liberty in a statement. He highlighted a strong start to the "WAVE" booking season—the industry's peak period for promotions—and a growing consumer preference for the company's brands. "We expect another year of double-digit growth in both revenue and earnings, keeping us firmly on track to achieve our long-term 'Perfecta' financial targets by 2027."
For the current year, the company provided adjusted earnings per share guidance between $17.70 and $18.80, underscoring confidence in sustained profitability. The results reflect a broader post-pandemic resurgence in leisure travel, with consumers continuing to prioritize experiences, particularly cruise vacations offering bundled value.
Analyst & Investor Reactions
The report has solidified Wall Street's positive view on the travel and leisure sector. We gathered reactions from a few market observers:
Michael Torres, Portfolio Manager at Horizon Capital: "This isn't just a rebound story anymore; it's a growth story. Royal Caribbean is demonstrating exceptional pricing power and operational efficiency. The guidance confirms the structural demand shift towards experiential spending is intact."
Sarah Chen, Independent Travel Industry Analyst: "The numbers are impressive, but let's not ignore the macro risks. Fuel cost volatility, potential economic softening, and geopolitical tensions could quickly alter the itinerary. The valuation now prices in perfection, leaving little room for error."
David "Finn" O'Reilly, Retail Investor & Cruise Enthusiast: "It's simple—people are sick of being stuck at home and want to live. These results prove it. The so-called 'experts' who wrote off the cruise industry during the pandemic are completely silent now. RCL is just getting started."
The strong performance places Royal Caribbean as a standout in the consumer discretionary space, potentially setting a positive tone for upcoming reports from rival operators. The company's focus on newer, amenity-rich ships and private island destinations appears to be resonating strongly with vacationers.