At a glance
Royal Caribbean Cruises Ltd is worth $85.88B, about 21 times its fiscal 2025 earnings. Revenue grew 8.8% to $17.93B in fiscal 2025, with 23.8% kept as profit; over 5 years it has grown 52.0% a year. It pays a 1.71% dividend yield, and returned $2.09B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +14.2% over the past year with dividends reinvested and +30.5% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 79.6% in the 2020 crash (S&P 500: 33.7%) and 64.5% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 44 months and 11 months after the lows.
The business in plain English
Royal Caribbean Cruises Ltd. sells cruise vacations. It owns three global brands, Royal Caribbean, Celebrity Cruises and Silversea. It also owns half of TUI Cruises GmbH, a joint venture with German tourism company TUI AG that runs the TUI Cruises and Hapag-Lloyd Cruises brands for German guests. As of December 31, 2025, the combined fleet had 69 ships with about 179,720 berths (guest beds), visiting more than 1,000 destinations on all seven continents.
It earns money from cruise fares and onboard spending, and it relies on travel advisors to sell and market its cruises. The Royal Caribbean brand, which the company calls the world's largest cruise vacation brand, is the core: 29 ships with about 111,000 berths, aimed at families and couples on three- to 14-night trips. Celebrity Cruises (15 ships, about 38,900 berths) targets the premium market and is adding a river cruise fleet. Silversea (12 ships, about 5,500 berths) offers ultra-luxury and expedition trips to places such as Antarctica.
It also runs three private destinations in its Perfect Day and Royal Beach Club collections, with plans for seven by 2028. Management runs the three global brands as one business, and its annual report gives no revenue split by brand or region. Revenue was $17.9 billion in fiscal 2025. Rivals include Carnival, Norwegian, MSC, Disney and Viking.
Price history
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RCL +14.2% over the year to Nov 2, 2026, total return with dividends reinvested.
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $5.59B, up 8.8% from a year earlier, and net income was $1.73B (+9.7%).
- For fiscal 2025, revenue was $17.93B (+8.8% year over year; +52.0% a year from FY2020 to FY2025) with a 23.8% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +52.0% good |
|---|---|
| Operating margin | 27.4% good |
| Free cash flow margin | 6.9% watch |
| Return on equity (FY2025) | 42.5% good |
| Return on assets (FY2025) | 10.3% good |
| Net cash (cash minus debt) | $-22.02B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $2.21B | $-5.80B | $-5.70B |
| FY2021 | $1.53B | $-5.26B | $-4.11B |
| FY2022 | $8.84B | $-2.16B | $-2.23B |
| FY2023 | $13.90B | $1.70B | $580.0M |
| FY2024 | $16.48B | $2.88B | $2.00B |
| FY2025 | $17.93B | $4.27B | $1.24B |
Valuation snapshot
| Market value | $85.88B |
|---|---|
| P/E ratio | 20.6 |
| Dividend yield | 1.71% |
Rank among 1514 US companies
Market value at each year end
Royal Caribbean Cruises Ltd’s market value went from $17.60B at the end of 2016 to $85.88B on Nov 2, 2026, about 4.9 times as much; since the end of 2025 it is up 13%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $85.88B | +12.9% |
| 2025 | $76.07B | +22.6% |
| 2024 | $62.03B | +86.9% |
| 2023 | $33.18B | +163.0% |
| 2022 | $12.61B | -35.6% |
| 2021 | $19.59B | +16.9% |
| 2020 | $16.76B | -40.1% |
| 2019 | $27.99B | +36.9% |
| 2018 | $20.44B | -20.0% |
| 2017 | $25.54B | +45.1% |
| 2016 | $17.60B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| RCL price data to Nov 2, 2026 | +17.0% | +14.2% | +55.5% | +30.5% | +17.0% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +17.0% |
| 2025 | +22.5% |
| 2024 | +79.0% |
| 2023 | +162.0% |
| 2022 | -35.7% |
| 2021 | +3.0% |
| 2020 | -43.4% |
| 2019 | +40.0% |
| 2018 | -16.1% |
| 2017 | +48.2% |
| 2016 | -17.1% |
| 2015 | +24.8% |
| 2014 | +76.9% |
| 2013 | +42.1% |
| 2012 | +39.4% |
| 2011 | -46.9% |
| 2010 | +85.9% |
| 2009 | +83.8% |
| 2008 | -67.1% |
| 2007 | +4.1% |
| 2006 | -6.8% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 85.7% over that stretch · deepest drop along the way 87.1%, back to its old high 20.1 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 74.3% over that stretch · deepest drop along the way 79.6%, back to its old high 44.4 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 43.9% over that stretch · deepest drop along the way 64.5%, back to its old high 10.7 months after the low |
Insider activity
Form 4 filings from 2025-10-31 to 2026-10-31 (25 read): 0 open-market purchases and 90 sales ($557.1M).
| Date | Insider | Type | Value |
|---|---|---|---|
| Feb 26, 2026 | Arne Alexander Wilhelmsen Director | sell | $49.9M |
| Feb 27, 2026 | Arne Alexander Wilhelmsen Director | sell | $47.4M |
| Feb 24, 2026 | Arne Alexander Wilhelmsen Director | sell | $38.4M |
| Feb 26, 2026 | Arne Alexander Wilhelmsen Director | sell | $34.0M |
| Feb 24, 2026 | Arne Alexander Wilhelmsen Director | sell | $29.6M |
Who owns it
Large shareholders (13G filings)
| Capital International Investors | 9.5% | Mar 31, 2026 |
| Capital World Investors | 7.6% | Mar 31, 2026 |
| BlackRock, Inc. | 7.4% | Sep 30, 2025 |
| Vanguard Capital Management | 6.86% | Mar 31, 2026 |
| A WILHELMSEN A S | 6.8% | Dec 31, 2024 |
| Capital Research Global Investors | 6.4% | Sep 30, 2026 |
ETFs with the most weight in RCL
| PEJ Invesco Leisure and Entertainment ETF | 4.83% |
| PEZ Invesco Dorsey Wright Consumer Cyclicals Momentum ETF | 3.65% |
| WLTG WealthTrust DBS Long Term Growth ETF | 2.72% |
| RPG Invesco S&P 500® Pure Growth ETF | 2.03% |
| VOT Vanguard Mid-Cap Growth ETF | 1.55% |
| XLY Consumer Discretionary Select Sector SPDR Fund | 1.5% |
| BKDV BNY Mellon Dynamic Value ETF | 1.42% |
| CGDV Capital Group Dividend Value ETF | 1.05% |
What could go wrong
- A large debt load. As of September 30, 2026, total debt was about $22.9 billion against $851 million of cash and investments. Breaching lender conditions (covenants) or failing to borrow on acceptable terms could strain its cash.
- Disease outbreaks can stop sailings. Global cruise operations were suspended in 2020, and the company lost about $5.8 billion that year. Disease outbreaks, or fear that ships spread illness, can trigger cancellations, port closures and costly health rules.
- Shipbuilding delays or cost overruns. The company depends on shipyards and suppliers to build and repair its ships. Four Royal Caribbean ships are on order and a 20-ship river fleet is planned. Delays or cost overruns could disrupt sailings.
- Favorable tax status could change. The company benefits from shipping tax rules such as the UK tonnage tax, which taxes ships by tonnage (size) rather than profit. Changes to that status or to US tax treatment could raise taxes.
- Rising costs and fuel price swings. Fuel, food, payroll and insurance costs have risen before, including from inflation. Because the company borrows heavily and operates worldwide, swings in fuel prices, exchange rates and interest rates can also move profits.
- Weak economies hurt vacation spending. Cruises are optional, discretionary spending. Weak or uncertain economies can lead to booking slowdowns, lower fares and less onboard spending. They could also force write-downs of ships, goodwill and trademarks.
Recent events
- Quarterly results released
- Other company announcement
- Major agreement signed; New debt or financial obligation
- Major agreement signed
- Quarterly results released
- Executive or board change; Investor presentation or announcement
- Shareholder vote results
- Investor presentation or announcement
- Quarterly results released
- Major agreement signed; New debt or financial obligation
For income and retirement investors
Royal Caribbean's dividend record is short. It paid $0.78 a share in fiscal 2020, nothing in fiscal 2021 through 2023, then $0.95 in fiscal 2024 and $3.50 in fiscal 2025, which appears to include a one-time special dividend. The yield was 1.84% as of October 28, 2026. Fiscal 2025 dividends took 19.3% of earnings but 66.7% of free cash flow (cash left after capital spending). With $1.16 billion of buybacks on top, total payouts exceeded that year's free cash flow. Even so, shares outstanding rose 5% from October 2021 to October 2026.
The stock has fallen hard in downturns. It dropped 87.1% in the 2008 financial crisis and took about 20 months from the low to regain its peak. In the 2020 COVID crash it fell 79.6% and needed about 44 months to recover. It lost 64.5% in the 2022 bear market and recovered in about 11 months. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Royal Caribbean make money?
Mainly by selling cruise vacations and the extras guests buy on board. Royal Caribbean Cruises Ltd. runs three global brands, Royal Caribbean, Celebrity Cruises and Silversea. It also owns half of TUI Cruises GmbH, which serves German travelers, and operates private destinations in its Perfect Day and Royal Beach Club collections. Revenue was $17.9 billion in fiscal 2025, up 8.8%, and net income was $4.27 billion. Its annual report does not split revenue by brand or region.
Does Royal Caribbean pay a dividend?
Yes. Royal Caribbean restarted its dividend in fiscal 2024 at $0.95 a share after paying nothing in fiscal 2021 through 2023. Fiscal 2025 dividends totaled $3.50 a share, a figure that appears to include a one-time special payment. The yield was 1.84% as of October 28, 2026. The company's annual report warns there is no assurance it will keep paying dividends or buying back shares at past levels, or at all.
How much debt does Royal Caribbean have?
About $22.9 billion of total debt as of September 30, 2026, against $851 million of cash and investments and $11.7 billion of shareholders' equity. That leaves net debt of about $22.0 billion. Royal Caribbean reported new debt agreements in February and August 2026. Its annual report warns that failing to meet loan covenants (conditions lenders set) or to raise financing on acceptable terms could hurt its liquidity, meaning its ability to pay bills as they come due.
How much did Royal Caribbean stock fall during COVID?
About 80%. The shares fell 79.6% between February 19 and March 18, 2020, as the pandemic led to a suspension of global cruise operations. They did not regain their prior peak until December 1, 2023, roughly 44 months after the low. The company lost about $5.8 billion in fiscal 2020 and $5.3 billion in fiscal 2021, when revenue fell to $1.5 billion. It returned to a profit of $1.7 billion in fiscal 2023.
Is Royal Caribbean a US company?
No. The parent company, Royal Caribbean Cruises Ltd., was incorporated in the Republic of Liberia on July 23, 1985, though its shares trade on the New York Stock Exchange. The company says shareholders may face the uncertainties of a foreign legal system when protecting their interests. It adds that Liberian law and its own charter and by-laws could make a change of control harder. Changes to its tax status under UK tonnage tax or US tax rules could also hurt results.