Royal Caribbean Cruises (RCL) lifted its earnings guidance for 2026 and signaled confidence in revenue growth, even as higher fuel costs and Iran related safety concerns continue to affect bookings and operating expenses.

Royal Caribbean Cruises shares trade at US$292.29 and have eased in the short term, with the 7 day share price return down 2.57%. However, the 90 day share price return of 6.22% and a very large 5 year total shareholder return of 263.30% suggest longer term momentum has been strong as investors weigh higher fuel costs and Iran related safety concerns against raised earnings guidance and confidence in 2026 revenue growth.

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Royal Caribbean Cruises has raised its 2026 earnings guidance while the stock trades below its recent high after a mixed year for bookings and fuel costs. Does that setup favour buying now or waiting for a cheaper entry before the next voyage?

Most Popular Narrative: 13.1% Undervalued

The most followed narrative values Royal Caribbean Cruises at $336.31 per share, compared with the last close of $292.29. This frames the current discount through a long term earnings and cash flow lens.

The introduction of new ships like Star of the Seas and Celebrity Xcel, coupled with existing fleet performance, is expected to drive yield growth between 2.6% and 4.6% in 2025, positively impacting revenue and earnings.

Read the complete narrative. Read the complete narrative.

Want to understand why this narrative still sees potential upside for Royal Caribbean Cruises? The entire valuation leans on measured revenue growth, firmer margins and a future earnings multiple that must stay above today’s market average. The full story connects these moving parts into one price tag.

Result: Fair Value of $336.31 (UNDERVALUED)

However, the narrative around Royal Caribbean Cruises could shift quickly if consumer spending weakens or if further delays and political setbacks emerge around projects like Perfect Day Mexico.

Next Steps

Mixed signals around Royal Caribbean Cruises can make the picture feel unclear, so it helps to review both sides and move quickly to form your own stance. To see the balance of possible upsides and concerns in one place, take a close look at the 4 key rewards and 3 important warning signs.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.