Royal Caribbean Group filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $19.1 billion, which rose 9.7% on the year before. That growth rate was up 1.0 percentage points on the rate a quarter earlier.
Source: SEC EDGAR XBRL company facts. Latest period shown: FY26 Q3.
View chart data
| Period | Revenue growth, TTM YoY | Operating margin (TTM) | FCF margin (TTM) |
|---|---|---|---|
| FY24 Q4 | 18.6% | 24.9% | 12.1% |
| FY25 Q1 | 13.7% | 25.7% | 12.6% |
| FY25 Q2 | 12.1% | 26.4% | 20.9% |
| FY25 Q3 | 8.6% | 26.4% | 11.7% |
| FY25 Q4 | 8.8% | 27.4% | 6.9% |
| FY26 Q1 | 9.7% | 27.9% | 7.5% |
| FY26 Q2 | 8.7% | 27.3% | -2.2% |
| FY26 Q3 | 9.7% | 27.6% | 7.9% |
The main points
Net income rose 11.9% over the year while free cash flow fell 25.8%, indicating that reported profit and cash are moving at different speeds. Capital spending rose 26.0%, faster than operating cash flow’s 9.3%, so less of the cash generated was left over.
What the company earns
Profit and cash are telling different stories: earnings rose while cash flow fell. The trailing gross margin was 49.1%. The trailing operating margin was 27.6%, up 1.2 percentage points from a year earlier. Alongside that, the trailing net margin was 23.8%. Net income over the twelve months was $4.6 billion, which rose 11.9% on the year before.
Cash flow
Investment is rising faster than operating cash flow, squeezing what is left for shareholders. Operating cash flow over the twelve months was $6.9 billion, up 9.3% on the year before. Capital spending was $5.4 billion, or 28.2% of revenue. Free cash flow, operating cash flow less capital spending, was $1.5 billion, down 25.8% on the year before. Free cash flow was 7.9% of revenue (the free-cash-flow margin), down 3.8 percentage points from a year earlier.
The share base
The average diluted share count fell 3.3% over the year.
Against its own history
Set against the company’s own record: today’s free-cash-flow margin of 7.9% is higher than 76% of the company’s own past quarterly readings, which have ranged from −5153.0% to 27.7%. Today’s operating margin of 27.6% is higher than 99% of past readings (−4118.1% to 27.9%). Today’s twelve-month revenue growth rate of 9.7% is higher than 60% of past readings (−98.8% to 4914.6%).
Guidance
The company raised its full year 2026 guidance for adjusted EPS to a range of $17.73 to $17.87. The company gave its third quarter 2026 guidance for adjusted EPS of $6.26 to $6.36, and for total revenue growth of 8%. The company gave its full year 2026 guidance for revenue of 9%.
What it means for our valuation
These trends feed directly into what the shares are worth in our model. In our model, growth 5 percentage points lower would lower the value by 38.9%, and 5 percentage points higher would raise it by 50.5%. A free-cash-flow margin 1 percentage point lower would lower it by 12.8%.
What to watch
The next filing will show whether the trends above continue, slow or reverse.
