Royal Caribbean Stock Declines Slightly
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 26 2026
0mins
Source: NASDAQ.COM
- Stock Performance: Royal Caribbean (RCL) ended the recent trading session at $318.13, reflecting a -1.4% change from the previous day's close, underperforming the S&P 500's daily loss of 0.05%, indicating market caution regarding its short-term outlook.
- Monthly Growth: Despite the recent decline, RCL's stock has increased by 14.7% over the past month, surpassing the Consumer Discretionary sector's loss of 2.34%, demonstrating its relative resilience amid market volatility.
- Earnings Expectations: The upcoming earnings report is projected to show an EPS of $3.91, a 10.73% decrease year-over-year, while revenue is expected to reach $4.81 billion, reflecting a 6.04% increase, indicating potential growth even in challenging conditions.
- Valuation Analysis: RCL holds a Forward P/E ratio of 18.68, above the industry average of 16.8, with a PEG ratio of 1.13, suggesting high market expectations for future growth, despite the industry ranking in the bottom 26%.
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Analyst Views on RCL
Wall Street analysts forecast RCL stock price to rise
16 Analyst Rating
12 Buy
4 Hold
0 Sell
Strong Buy
Current: 287.780
Low
275.00
Averages
327.80
High
400.00
Current: 287.780
Low
275.00
Averages
327.80
High
400.00
About RCL
Royal Caribbean Cruises Ltd. is a cruise company, which owns and operates three global cruise brands: Royal Caribbean, Celebrity Cruises and Silversea Cruises. It also has an interest in TUI Cruises GmbH, which operates the German brands TUI Cruises and Hapag-Lloyd Cruises. Its ships offer a selection of worldwide itineraries that call on approximately 1,000 destinations on all seven continents. Royal Caribbean offers cruises and land destinations that generally feature a casual ambiance, as well as a variety of activities and entertainment venues. Celebrity Cruises offers a range of itineraries to destinations, including Alaska, Asia, Australia, Bermuda, Canada, the Caribbean, Europe, the Galapagos Islands, Hawaii, New Zealand, the Panama Canal and South America, with cruise lengths ranging from three to 14 nights. It also offers a range of private land destinations through Perfect Day at CocoCay and Royal Beach Club collection.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Royal Caribbean on Track for Solid Q2 Performance
- Q2 Outlook: Royal Caribbean is expected to achieve solid performance in Q2, although specific financial figures are not yet disclosed, the market generally holds an optimistic view, indicating strong momentum in the company's recovery.
- Q3 Booking Risks: Despite the positive outlook for Q2, bookings for Q3 face downside risks that could impact overall revenue and profitability, reflecting uncertainty in market demand.
- Market Reaction: Investors are adopting a cautious stance regarding Royal Caribbean's prospects, particularly in light of the booking risks for Q3, which may exert pressure on its stock price and affect market confidence.
- Strategic Adjustments: The company may need to adjust its marketing strategies based on market feedback to address the challenges in Q3, ensuring continued customer attraction and revenue growth.
See More
Investment Comparison: MGM vs. Royal Caribbean
- Financial Performance Comparison: MGM Resorts reported approximately $17.5 billion in revenue for FY 2025, reflecting a modest 1.7% growth with a net income of about $206.2 million and a net margin of only 1.2%, indicating limited profitability in a competitive landscape; in contrast, Royal Caribbean achieved around $17.9 billion in revenue, an 8.8% increase, with a net income of approximately $4.3 billion and a robust net margin of 23.8%, showcasing a more profitable business model.
- Debt and Liquidity Analysis: MGM's debt-to-equity ratio stands at 11.9x with a current ratio of about 1.2, suggesting reasonable short-term debt repayment capability but high debt levels restrict capital allocation flexibility; conversely, Royal Caribbean's debt-to-equity ratio is 2.3x with a current ratio of only 0.2, indicating greater pressure on its expansion capabilities.
- Market Risk Assessment: MGM faces intense competition from emerging resorts and iGaming platforms, alongside acquisition risks and cybersecurity threats that add uncertainty; meanwhile, Royal Caribbean relies on a limited number of shipyards, facing challenges from labor shortages and environmental regulations, while being highly sensitive to global economic fluctuations.
- Future Growth Outlook: Although MGM has a diversified presence in Las Vegas and regional markets, its growth narrative is currently mixed, especially with BetMGM lowering revenue forecasts; in contrast, Royal Caribbean enjoys high visibility into future demand, with earnings projected to grow at a double-digit pace in 2026 and a consistent return of capital to shareholders, indicating stronger growth potential.
See More
Investment Comparison: MGM vs. Royal Caribbean
- MGM Financial Performance: In FY 2025, MGM Resorts reported nearly $17.5 billion in revenue, reflecting a growth rate of approximately 1.7%, with a net income of about $206.2 million and a net margin of around 1.2%, indicating its profitability amidst high competition.
- Royal Caribbean Growth Momentum: Royal Caribbean Cruises achieved approximately $17.9 billion in revenue for FY 2025, an increase of nearly 8.8%, with a net income of about $4.3 billion and a net margin of 23.8%, showcasing its strong performance and profitability in the global cruise market.
- Debt and Liquidity Analysis: MGM's debt-to-equity ratio stands at approximately 11.9x with a current ratio of about 1.2x, indicating limited capital allocation flexibility; in contrast, Royal Caribbean's debt-to-equity ratio is 2.3x with a current ratio of 0.2x, highlighting potential risks in its expansion strategy.
- Market Competition and Outlook: While MGM's diversified operations in Las Vegas face intense competition and market softness, Royal Caribbean demonstrates stronger visibility into future demand, with projected double-digit earnings growth in 2026 and ongoing shareholder returns through buybacks.
See More
Celebrity River Cruises Launches New Destination Experiences
- New Travel Experience: Celebrity River Cruises introduces 'Before and After Stays,' allowing guests to explore Budapest, Prague, Amsterdam, and Lausanne in-depth in 2027 and 2028, enhancing customer travel experience and satisfaction.
- Personalized Tours: Each 'Before and After Stay' is led by local experts, offering daily Discovery Collection tours that allow guests to choose themes based on personal interests, enriching the uniqueness and engagement of their travel.
- Premium Accommodation Assurance: The program includes high-end hotel accommodations, daily breakfasts, and ship transfers, ensuring a seamless travel experience while elevating the service quality and customer loyalty associated with the Celebrity brand.
- Economic and Cultural Support: By collaborating with local businesses, Celebrity Cruises not only fosters economic development but also supports the preservation of traditional crafts and cultural heritage, demonstrating the company's commitment to sustainable tourism.
See More
Royal Caribbean Stock Declines Slightly
- Stock Performance: Royal Caribbean (RCL) ended the recent trading session at $318.13, reflecting a -1.4% change from the previous day's close, underperforming the S&P 500's daily loss of 0.05%, indicating market caution regarding its short-term outlook.
- Monthly Growth: Despite the recent decline, RCL's stock has increased by 14.7% over the past month, surpassing the Consumer Discretionary sector's loss of 2.34%, demonstrating its relative resilience amid market volatility.
- Earnings Expectations: The upcoming earnings report is projected to show an EPS of $3.91, a 10.73% decrease year-over-year, while revenue is expected to reach $4.81 billion, reflecting a 6.04% increase, indicating potential growth even in challenging conditions.
- Valuation Analysis: RCL holds a Forward P/E ratio of 18.68, above the industry average of 16.8, with a PEG ratio of 1.13, suggesting high market expectations for future growth, despite the industry ranking in the bottom 26%.
See More
Carnival Corp's Mixed Earnings Report Leads to Stock Decline
- Earnings Highlights: Carnival Corp achieved its 12th consecutive quarter of beating Wall Street's adjusted earnings expectations with $0.41 per share, despite a 30% rise in fuel costs negatively impacting earnings by $0.06 per share, demonstrating resilience in profitability.
- Guidance Downgrade: Despite the strong bottom-line performance, Carnival lowered its full-year adjusted earnings guidance to $2.22 per share, just below market expectations of $2.23, and also reduced its current quarter guidance from $1.42 to $1.35 per share, reflecting pressure from rising costs.
- Market Leadership Erosion: While Carnival's bookings are ahead of last year and passengers are willing to pay more, its stock has only risen 16% over the past year compared to Royal Caribbean's 30% increase, indicating a shift in market leadership.
- Competitive Landscape Shift: Royal Caribbean, although smaller in fleet size and revenue, has surpassed Carnival in market capitalization due to superior profitability and passenger loyalty, establishing itself as the leader in shareholder returns, highlighting intensifying competition in the industry.
See More
Royal Caribbean on Track for Solid Q2 Performance
- Q2 Outlook: Royal Caribbean is expected to achieve solid performance in Q2, although specific financial figures are not yet disclosed, the market generally holds an optimistic view, indicating strong momentum in the company's recovery.
- Q3 Booking Risks: Despite the positive outlook for Q2, bookings for Q3 face downside risks that could impact overall revenue and profitability, reflecting uncertainty in market demand.
- Market Reaction: Investors are adopting a cautious stance regarding Royal Caribbean's prospects, particularly in light of the booking risks for Q3, which may exert pressure on its stock price and affect market confidence.
- Strategic Adjustments: The company may need to adjust its marketing strategies based on market feedback to address the challenges in Q3, ensuring continued customer attraction and revenue growth.
See More
Investment Comparison: MGM vs. Royal Caribbean
- Financial Performance Comparison: MGM Resorts reported approximately $17.5 billion in revenue for FY 2025, reflecting a modest 1.7% growth with a net income of about $206.2 million and a net margin of only 1.2%, indicating limited profitability in a competitive landscape; in contrast, Royal Caribbean achieved around $17.9 billion in revenue, an 8.8% increase, with a net income of approximately $4.3 billion and a robust net margin of 23.8%, showcasing a more profitable business model.
- Debt and Liquidity Analysis: MGM's debt-to-equity ratio stands at 11.9x with a current ratio of about 1.2, suggesting reasonable short-term debt repayment capability but high debt levels restrict capital allocation flexibility; conversely, Royal Caribbean's debt-to-equity ratio is 2.3x with a current ratio of only 0.2, indicating greater pressure on its expansion capabilities.
- Market Risk Assessment: MGM faces intense competition from emerging resorts and iGaming platforms, alongside acquisition risks and cybersecurity threats that add uncertainty; meanwhile, Royal Caribbean relies on a limited number of shipyards, facing challenges from labor shortages and environmental regulations, while being highly sensitive to global economic fluctuations.
- Future Growth Outlook: Although MGM has a diversified presence in Las Vegas and regional markets, its growth narrative is currently mixed, especially with BetMGM lowering revenue forecasts; in contrast, Royal Caribbean enjoys high visibility into future demand, with earnings projected to grow at a double-digit pace in 2026 and a consistent return of capital to shareholders, indicating stronger growth potential.
See More
Investment Comparison: MGM vs. Royal Caribbean
- MGM Financial Performance: In FY 2025, MGM Resorts reported nearly $17.5 billion in revenue, reflecting a growth rate of approximately 1.7%, with a net income of about $206.2 million and a net margin of around 1.2%, indicating its profitability amidst high competition.
- Royal Caribbean Growth Momentum: Royal Caribbean Cruises achieved approximately $17.9 billion in revenue for FY 2025, an increase of nearly 8.8%, with a net income of about $4.3 billion and a net margin of 23.8%, showcasing its strong performance and profitability in the global cruise market.
- Debt and Liquidity Analysis: MGM's debt-to-equity ratio stands at approximately 11.9x with a current ratio of about 1.2x, indicating limited capital allocation flexibility; in contrast, Royal Caribbean's debt-to-equity ratio is 2.3x with a current ratio of 0.2x, highlighting potential risks in its expansion strategy.
- Market Competition and Outlook: While MGM's diversified operations in Las Vegas face intense competition and market softness, Royal Caribbean demonstrates stronger visibility into future demand, with projected double-digit earnings growth in 2026 and ongoing shareholder returns through buybacks.
See More
Celebrity River Cruises Launches New Destination Experiences
- New Travel Experience: Celebrity River Cruises introduces 'Before and After Stays,' allowing guests to explore Budapest, Prague, Amsterdam, and Lausanne in-depth in 2027 and 2028, enhancing customer travel experience and satisfaction.
- Personalized Tours: Each 'Before and After Stay' is led by local experts, offering daily Discovery Collection tours that allow guests to choose themes based on personal interests, enriching the uniqueness and engagement of their travel.
- Premium Accommodation Assurance: The program includes high-end hotel accommodations, daily breakfasts, and ship transfers, ensuring a seamless travel experience while elevating the service quality and customer loyalty associated with the Celebrity brand.
- Economic and Cultural Support: By collaborating with local businesses, Celebrity Cruises not only fosters economic development but also supports the preservation of traditional crafts and cultural heritage, demonstrating the company's commitment to sustainable tourism.
See More
Royal Caribbean Stock Declines Slightly
- Stock Performance: Royal Caribbean (RCL) ended the recent trading session at $318.13, reflecting a -1.4% change from the previous day's close, underperforming the S&P 500's daily loss of 0.05%, indicating market caution regarding its short-term outlook.
- Monthly Growth: Despite the recent decline, RCL's stock has increased by 14.7% over the past month, surpassing the Consumer Discretionary sector's loss of 2.34%, demonstrating its relative resilience amid market volatility.
- Earnings Expectations: The upcoming earnings report is projected to show an EPS of $3.91, a 10.73% decrease year-over-year, while revenue is expected to reach $4.81 billion, reflecting a 6.04% increase, indicating potential growth even in challenging conditions.
- Valuation Analysis: RCL holds a Forward P/E ratio of 18.68, above the industry average of 16.8, with a PEG ratio of 1.13, suggesting high market expectations for future growth, despite the industry ranking in the bottom 26%.
See More
Carnival Corp's Mixed Earnings Report Leads to Stock Decline
- Earnings Highlights: Carnival Corp achieved its 12th consecutive quarter of beating Wall Street's adjusted earnings expectations with $0.41 per share, despite a 30% rise in fuel costs negatively impacting earnings by $0.06 per share, demonstrating resilience in profitability.
- Guidance Downgrade: Despite the strong bottom-line performance, Carnival lowered its full-year adjusted earnings guidance to $2.22 per share, just below market expectations of $2.23, and also reduced its current quarter guidance from $1.42 to $1.35 per share, reflecting pressure from rising costs.
- Market Leadership Erosion: While Carnival's bookings are ahead of last year and passengers are willing to pay more, its stock has only risen 16% over the past year compared to Royal Caribbean's 30% increase, indicating a shift in market leadership.
- Competitive Landscape Shift: Royal Caribbean, although smaller in fleet size and revenue, has surpassed Carnival in market capitalization due to superior profitability and passenger loyalty, establishing itself as the leader in shareholder returns, highlighting intensifying competition in the industry.
See More
