Cruise company Norwegian Cruise Line (NYSE: NCLH) fell short of the market’s revenue expectations in Q1 CY2026, but sales rose 9.6% year on year to $2.33 billion. Its non-GAAP profit of $0.23 per share was 61.2% above analysts’ consensus estimates.
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Norwegian Cruise Line (NCLH) Q1 CY2026 Highlights:
- Revenue: $2.33 billion vs analyst estimates of $2.36 billion (9.6% year-on-year growth, 1.2% miss)
- Adjusted EPS: $0.23 vs analyst estimates of $0.14 (61.2% beat)
- Adjusted EBITDA: $532.9 million vs analyst estimates of $501.6 million (22.9% margin, 6.2% beat)
- Management lowered its full-year Adjusted EPS guidance to $1.62 at the midpoint, a 31.9% decrease
- EBITDA guidance for the full year is $2.56 billion at the midpoint, below analyst estimates of $2.81 billion
- Operating Margin: 10%, in line with the same quarter last year
- Free Cash Flow was -$625.2 million compared to -$846 million in the same quarter last year
- Passenger Cruise Days: up 847,283 year on year
- Market Capitalization: $8.64 billion
“We delivered strong first quarter results, and more importantly we have already begun taking decisive actions to strengthen execution and accountability across the company, which will enhance results over the longer term,” said John W. Chidsey, Chairperson and Chief Executive Officer of Norwegian Cruise Line Holdings Ltd.
Company Overview
With amenities like a full go-kart race track built into its ships, Norwegian Cruise Line (NYSE: NCLH) is a premier global cruise company.
Revenue Growth
A company’s long-term sales performance can indicate its overall quality. Any business can experience short-term success, but top-performing ones enjoy sustained growth for years. Thankfully, Norwegian Cruise Line’s 208% annualized revenue growth over the last five years was incredible. Its growth beat the average consumer discretionary company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within consumer discretionary, a stretched historical view may miss a company riding a successful new property or trend. Norwegian Cruise Line’s recent performance shows its demand has slowed significantly as its annualized revenue growth of 6.1% over the last two years was well below its five-year trend. 
Norwegian Cruise Line also discloses its number of passenger cruise days, which reached 6.63 million in the latest quarter. Over the last two years, Norwegian Cruise Line’s passenger cruise days averaged 4.4% year-on-year growth. Because this number is lower than its revenue growth during the same period, we can see the company’s monetization has risen. 
This quarter, Norwegian Cruise Line’s revenue grew by 9.6% year on year to $2.33 billion, missing Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 6.7% over the next 12 months, similar to its two-year rate. This projection is underwhelming and implies its newer products and services will not lead to better top-line performance yet.
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Operating Margin
Operating margin is an important measure of profitability as it shows the portion of revenue left after accounting for all core expenses – everything from the cost of goods sold to advertising and wages. It’s also useful for comparing profitability across companies with different levels of debt and tax rates because it excludes interest and taxes.
Norwegian Cruise Line’s operating margin has generally stayed the same over the last 12 months, and we generally like to see margin increases due to economies of scale and cost efficiency over time.
This quarter, Norwegian Cruise Line generated an operating margin profit margin of 10%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Norwegian Cruise Line’s full-year EPS flipped from negative to positive over the last five years. This is encouraging and shows it’s at a critical moment in its life.
In Q1, Norwegian Cruise Line reported adjusted EPS of $0.23, up from $0.07 in the same quarter last year. This print easily cleared analysts’ estimates, and shareholders should be content with the results. Over the next 12 months, Wall Street expects Norwegian Cruise Line’s full-year EPS of $2.22 to shrink by 7.2%.
Key Takeaways from Norwegian Cruise Line’s Q1 Results
It was good to see Norwegian Cruise Line beat analysts’ EPS expectations this quarter. We were also happy its adjusted operating income outperformed Wall Street’s estimates. On the other hand, its full-year EBITDA guidance missed and its EBITDA guidance for next quarter fell short of Wall Street’s estimates. Overall, this was a weaker quarter. The stock traded down 4.7% to $17.85 immediately following the results.
Norwegian Cruise Line may have had a tough quarter, but does that actually create an opportunity to invest right now? When making that decision, it’s important to consider its valuation, business qualities, as well as what has happened in the latest quarter. We cover that in our actionable full research report which you can read here (it’s free).
