Will Royal Caribbean Stock Sail Ahead in 2026?
Royal Caribbean has reported strong financial results for the first nine months of 2025. The company’s revenue reached nearly $14 billion, up 7% from the same period last year. Net income also surged by 51%, hitting $3.5 billion, as the cruise giant continues its recovery from pandemic-era losses.
The firm’s performance has outpaced the broader market, though concerns over its high debt levels persist.
The cruise operator has cut interest expenses by 45%, helping boost profits. Despite this, its total debt remains substantial at $20.8 billion, down only slightly from $21.4 billion a year ago. Even so, the company has shown resilience, with 2026 bookings already exceeding those for 2025 at the same point in time.
Demand for cruises has stayed strong, with Royal Caribbean achieving a record 112% occupancy rate in the third quarter of 2025. To meet this demand, the company launched two new ships in August and November. These additions come as the industry recovers from the shutdowns of 2020 and 2021.
Royal Caribbean now holds the second-highest valuation in the sector, trailing only Viking Holdings. The latter, led by founder Torstein Hagen, has seen rapid growth, with revenue up 19.1% in the third quarter and a 30% operating margin. Analysts at Goldman Sachs have raised Viking’s price target to $78, citing its strong pricing power and differentiated model.
While Royal Caribbean has outperformed the S&P 500 over the past year, its large debt load and economic uncertainties could pose challenges. Still, the company’s ability to fill cabins without heavy discounting suggests continued momentum.
Royal Caribbean’s financial improvements reflect both cost-cutting and rising demand. The launch of new ships and strong booking trends point to further growth in 2026. However, its high debt levels and broader economic conditions will remain key factors to watch in the coming year.
