RCL Stock Heads For Second Weekly Gains: Royal Caribbean Expects Growth To Continue Even As Europe Cruises Face Headwinds

• Royal Caribbean CEO Jason Liberty said the prolonged Middle East conflict has softened demand for Mediterranean cruises in Q3. 
• However, the company maintained its full-year net yield growth forecast of 1.75% to 2.25%. 
• William Blair raised its 2026 EPS estimate to $17.81 from $17.28 and increased its fiscal 2027 projection to $20.37 from $19.61. 

Royal Caribbean Group (RCL) stock is headed for a second straight week of gains as the cruise operator reaffirmed its full-year guidance despite saying the ongoing conflict in the Middle East has weighed on near-term demand for some European sailings.

RCL stock edged 0.9% lower overnight, heading into Wednesday, after clocking its best day in over a month in the regular session. 

RCL CEO Says Outlook Remains Intact

During the company's fiscal second-quarter (Q2) earnings call, Royal Caribbean President and CEO Jason Liberty said the prolonged conflict in the Middle East has primarily affected Mediterranean itineraries scheduled for the third quarter.

“Although booking trends improved after the initial disruption, the conflict has persisted longer than anticipated, influencing consumer destination preferences and resulting in more modest yield growth for Europe sailings this summer.”

Despite these challenges, Royal Caribbean kept its full-year net yield growth forecast unchanged at 1.75% to 2.25%. The company still expects to increase its capacity by 6.6%, which should help drive double-digit growth in both revenue and earnings per share in 2026. Liberty said strong demand across most of the company's cruise offerings continues to offset weaker demand for some European sailings. 

Liberty said more travellers are choosing destinations closer to home instead of long-distance international trips because of higher airfare costs and a desire for greater flexibility. He added that more customers are also booking cruises closer to their departure dates, while overall demand for cruise vacations remains strong. 

Royal Caribbean’s Bookings And Guest Spending

Royal Caribbean said its forward booking position for both 2026 and 2027 remains consistent with previous years while achieving record pricing levels. The company also reported that onboard spending and purchases made before sailings continue to outperform historical trends. 

Liberty attributed part of that strength to improved digital engagement, allowing the company to present guests with more personalised vacation options. Royal Caribbean’s Q2 revenue of $4.8 billion and earnings of $4.20 per share both surpassed the analysts' consensus estimates of $4.8 billion and $3.98, respectively, as per Fiscal Ai data. 

William Blair Raises Royal Caribbean Earnings Forecast 

William Blair reiterated its Outperform rating for RCL stock and raised earnings outlook for the next two fiscal years. The firm said improving profit prospect and resilient pricing trends support a more optimistic long-term outlook for the company.

The firm lifted its fiscal 2026 EPS estimate to $17.81 from $17.28 and increased its fiscal 2027 projection to $20.37 from $19.61 following Royal Caribbean's earnings beat. 

RCL Stock: Retail Stance 

On Stocktwits, retail sentiment around the stock improved to ‘extremely bullish’ from ‘bullish’ territory the previous day with a 328% increase in message volume in 24 hours. 

A user said, “$RCL raised FY profit guidance. Demand still looks strong, even with a modest hit to bookings from Middle East conflict.”

RCL stock has gained over 15% year-to-date. 

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