RCL Stock Forecast & Price Target

Royal Caribbean Group has demonstrated a notable increase in Return on Capital (ROC), rising from 13.80% to 15.40% over the last twelve months, with projections indicating a further improvement to 18.03% in the next twelve months. The company's net sales revenue has also shown strong growth, increasing by 12.10% year-over-year, from $15.33 billion to $17.18 billion, signaling robust demand for its cruise offerings. Additionally, Economic Profit (EP) surged by 31.64% year-over-year, escalating from $1.19 billion to $1.57 billion, underscoring the company's effective management and operational efficiency.

Royal Caribbean Group has faced several significant operational challenges that negatively impact its financial outlook. Adverse weather conditions and political unrest in Haiti have led to adjusted EPS guidance being lowered, with management anticipating anemic cost growth in FY26 despite extended capacity through new private destinations. Additionally, the timing of new ship deliveries is expected to hinder yields, particularly as new vessels enter the market and experience initial low load factors to maintain customer satisfaction.