Royal Caribbean generated $1.7 billion in net income during Q3 2026, exceeding Hilton's entire 2025 net income of $1.5 billion in a single quarter. The cruise operator reported revenue of $5.6 billion, up 9% year-over-year, with earnings per share reaching $6.45, up from $5.74 the prior year. Management raised full-year adjusted earnings guidance to between $17.85 and $17.95 per share.
Bookings for 2027 sailings climbed in the high teens and were booked at record rates. Most growth came from added capacity rather than increased per-guest spending, as net yields rose only 0.9%.
The cruise industry's profitability significantly outpaces hotels and car rentals. Four major cruise operators (Carnival at $2.8 billion, Royal Caribbean at $4.3 billion, Viking at $1.1 billion, and Norwegian at $423 million) combined for $8.6 billion in net income on roughly $60.8 billion in revenue, operating on a 14% net margin. The four largest hotel companies (Marriott at $2.6 billion, Hilton at $1.5 billion, Hyatt at a $52 million loss, and IHG at $759 million) generated about $4.8 billion combined. Car rental operators posted losses, with Avis Budget losing $995 million and Hertz losing approximately $747 million.
Royal Caribbean owns three distinct brands: Royal Caribbean International, Celebrity Cruises, and Silversea. Approximately 50% of this year's guests were repeat customers, and about 40% belonged to its loyalty program. The company carries roughly $22.4 billion in debt. Royal Caribbean's $3 billion investment in Sandals, expected to close in early 2027, gives the company a stake in the land-based all-inclusive resort business, allowing it to capture additional vacation spending beyond shipboard revenue.