Royal Caribbean Cruises shares tumbled 6.14% in pre-market trading Tuesday, even after the cruise operator reported second-quarter earnings that surpassed Wall Street expectations and lifted its full-year profit forecast.

The company posted second-quarter adjusted earnings of $4.21 per share, beating the Ibes estimate of $3.98. However, actual earnings per share came in at $4.20, down from $4.41 in the same period last year, according to data from Dow Jones and FactSet. Royal Caribbean also raised its full-year adjusted EPS guidance to a range of $17.73 to $17.87, above the consensus estimate of $17.30.

Investors appeared to focus on the year-over-year earnings decline and some cautionary details in the outlook. The company noted that its forecast incorporates a modest booking impact for select itineraries, primarily due to prolonged geopolitical activity. Additionally, the cruise line disclosed that capacity changes for 2026 are expected to be 6.6% compared to 2025, while third-quarter fuel expenses are projected at $362 million. Booking trends for 2027 were described as encouraging and pacing ahead of historical levels, but that was not enough to offset the pre-market sell-off.