Royal Caribbean (RCL) has agreed to pay about $3 billion for half of Sandals and Beaches Resorts, a Caribbean all-inclusive resort owner. The company expects the deal to close in early 2027, and says the stake will add little to 2027 earnings. The stock moves further than the market. Over the year to November 3, 2026, it moved about 1.6 times as far as the S&P 500 on both up and down days. Its volatility was 47.8%, against 12.8% for the index, and its beta was 1.71. The business looks steady. Revenue rose 8.8% in fiscal Q3 2026, and management raised its full-year forecast on October 27, 2026. Over five years, the stock returned 29.6% a year including dividends, against 11.7% for the S&P 500.

Royal Caribbean beat Wall Street's adjusted earnings forecast in the third quarter and met revenue expectations. Revenue rose 8.8% year on year to $5.59 billion, against analyst estimates of $5.61 billion. Adjusted earnings per share were $6.57, versus the $6.38 expected. Chief executive officer Jason Liberty pointed to strong demand, higher onboard spending and loyalty programs. Passenger cruise days rose by 1.34 million. Adjusted EBITDA was $2.54 billion, a 45.4% margin. The company slightly raised its full-year adjusted earnings per share guidance to $17.90 at the midpoint. Analysts asked about growth prospects, the Sandals deal and booking trends. Chief financial officer Naftali Holtz said Sandals will have minimal impact on next year's results. Shares trade at $309.01, up from $280.67 before the results.

Carnival, Royal Caribbean and Norwegian Cruise Line Holdings posted strong third-quarter earnings despite rising fuel prices, but each takes a different approach to fuel costs. Brent crude settled at $116.72 per barrel on Friday, a six-month high. Royal Caribbean and Norwegian use hedging, which involves derivatives to limit exposure to price swings. Royal Caribbean has hedged over 60% of its 2026 fuel, and Norwegian about 48%. Carnival chief executive officer Josh Weinstein favours using less fuel. He said unit fuel consumption is down 26% since 2019, saving about $700 million in 2026. Carnival spent $615 million on fuel in the quarter, Royal Caribbean $347 million, and Norwegian $196 million. Carnival expects $640 million in fourth-quarter fuel costs; Royal Caribbean expects $379 million.