Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue growth | 9% | year-over-year |
| Adjusted EPS | $6.57 | $0.26 above guidance |
| Net Yields | 0.6% | 60 basis points above guidance |
| Net Cruise Costs (ex-fuel) | decreased 1.8% | year-over-year |
| Adjusted EBITDA | $2.5 billion | Not stated |
Guidance and outlook
- Full year net yields are expected to grow approximately 2.1%.
- Full year adjusted EPS is expected to be $17.85 to $17.95.
- Q4 net yields are expected to grow 4.2% to 4.7%.
- Q4 adjusted EPS is expected to be $3.48 to $3.58.
- 2027 capacity growth is expected to be 4.5%.
How management sounded
Positive (+7 on our -10 to +10 scale). Management highlighted record booking rates, accelerated demand, and raised full-year EPS guidance to $17.85 to $17.95. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
2027 Outlook
Asked: Matthew Boss with JPMorgan asked if multiyear prospects are moderating given the Perfecta plan ending.
Answer: Jason Liberty said no, noting the cruise industry is a small part of a $2 trillion vacation market and demand remains high.
Sandals Acquisition
Asked: Steve Wissink with Stifel asked about development opportunities for the 1,000 acres of land.
Answer: Naftali Holtz noted the land includes beachfront locations for room expansions and greenfield development, funded by the business's own cash flow.
Booking Trends
Asked: Brent Montour with Barclays asked if the trend of booking closer-in is a sign of consumer weakness.
Answer: Jason Liberty explained it is partly due to product mix, such as shorter itineraries, and younger demographics, noting onboard spend remains strong.
Synergies
Asked: Robin Farley with UBS asked about the source of the hundreds of millions in synergies.
Answer: Jason Liberty said they will come from revenue management, loyalty system connectivity, data analytics, and purchasing scale.
What to watch before the next call
- Timing of the Sandals and Beaches transaction closing.
- Progress on the Perfecta program targets for 2027.
- Updates on the Manawa project.
