How much a stock's price changes over time is important for most investors, since price performance can both impact your investment portfolio and help you compare investment results across sectors and industries.
Another thing that can drive investing is the fear of missing out, or FOMO. This particularly applies to tech giants and popular consumer-facing stocks.
What if you'd invested in Royal Caribbean (RCL) ten years ago? It may not have been easy to hold on to RCL for all that time, but if you did, how much would your investment be worth today?
Royal Caribbean's Business In-Depth
With that in mind, let's take a look at Royal Caribbean's main business drivers.
Royal Caribbean Cruises Ltd. is a global vacation company headquartered in Miami. The company operates three global cruise brands: Royal Caribbean, Celebrity Cruises and Silversea. It owns a 50% joint venture interest in TUI Cruises GmbH, which operates Mein Schiff and Hapag-Lloyd Cruises and is accounted for under the equity method.
Across its global and partner brands, the company operated 71 ships as of September 30, 2026. The fleet serves contemporary, premium and luxury segments across more than 1,000 destinations. Revenues are reported in two categories: passenger ticket revenues and onboard and other revenues.
In the third quarter of 2026, total revenues were $5.59 billion, consisting of $3.89 billion of passenger ticket revenues and $1.71 billion of onboard and other revenues. The company carried 2.68 million passengers, compared with 2.47 million in the prior-year period. Occupancy was 112.4%, versus 112.1% in the third quarter of 2025.
The business model is built around advance bookings and upfront deposits. Customer deposits were $6.03 billion as of September 30, 2026, compared with $5.74 billion at Dec. 31, 2025. The company reported $851 million of cash and cash equivalents and $7.4 billion of liquidity. In October, revolving credit capacity increased by $50 million to $6.65 billion.
Royal Caribbean Group has articulated multi-year financial objectives through its performance programs. The Trifecta program, introduced in 2022, focused on adjusted EBITDA per APCD, adjusted EPS and ROIC. The company continues to reference its Perfecta program, which targets a 20% compound annual growth rate in adjusted EPS from 2024 through 2027 and ROIC of at least 17% by the end of 2027.
The company maintains an orderbook for new ships and destination investments. It took delivery of Legend of the Seas in the second quarter of 2026. The orderbook includes additional Icon-class, Oasis-class and Discovery-class ships, Celebrity Xcite and Celebrity River Cruises vessels. The company plans to expand its private destinations from three to eight by 2028 and enter river cruising in 2027. In September 2026, it agreed to acquire a 50% interest in Sandals and Beaches Resorts, subject to closing conditions.
Bottom Line
Anyone can invest, but building a successful investment portfolio requires research, patience, and a little bit of risk. So, if you had invested in Royal Caribbean, ten years ago, you're likely feeling pretty good about your investment today.
A $1000 investment made in November 2016 would be worth $4,124.88, or a 312.49% gain, as of November 2, 2026, according to our calculations. Investors should note that this return excludes dividends but includes price increases.
In comparison, the S&P 500's gained 256.47% and the price of gold went up 187.75% over the same time frame.
Analysts are forecasting more upside for RCL too.
Royal Caribbean reported third-quarter 2026 results, with adjusted earnings and revenues beating the Zacks Consensus Estimate. The top and bottom lines increased 8.8% and 14.3% year over year, respectively. The company benefited from strong close-in demand, higher onboard spending and lower-than-expected costs, while improved operating leverage supported margins. Booking momentum and record rates for 2027 sailings support the earnings outlook. The company raised its 2026 adjusted EPS guidance to $17.85-$17.95, reflecting better operating performance. Shares of Royal Caribbean have outperformed the industry year to date. However, higher fuel expenses and unfavorable currency movements partly offset the gains. Expense timing shifts costs into the fourth quarter, while heavy capital spending and geopolitical uncertainty remain concerns.
The stock is up 10.60% over the past four weeks, and no earnings estimate has gone lower in the past two months, compared to 7 higher, for fiscal 2026. The consensus estimate has moved up as well.
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Royal Caribbean Cruises Ltd. (RCL): Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).