Ryanair (RYAAY) Stock: Mixed Q3 Results Show Revenue Strength Despite Earnings Miss

• Ryanair posted Q3 EPS of $0.03, falling short of analyst expectations by $0.07
• Quarterly revenue hit $3.21 billion, surpassing forecasts by $30 million with 8.4% growth
• Passenger traffic climbed 6% to 47.5 million with average fares up 4%
• FY26 passenger forecast increased to 208 million from 207 million previously
• Full-year fare growth now expected at 8-9%, exceeding earlier 7% target

Ryanair delivered contrasting third-quarter results that highlight the tension between volume growth and profitability pressures. The European low-cost carrier beat revenue targets while falling short on earnings.

Ryanair Holdings plc, RYAAY

The airline reported earnings per share of $0.03 for the quarter. This figure missed analyst consensus by $0.07. Revenue performance proved stronger, reaching $3.21 billion and exceeding expectations by $30 million.

Year-over-year revenue jumped 8.4%. Scheduled revenue provided the primary driver, rising 10% to €2.10 billion. Both passenger volume and pricing improvements contributed to this growth.

#Ryanair, $RYAAY, Q3-FY26. Results:

Adj. EPS: €0.11

Revenue: €3.21B

Net Income: €115M

Traffic data revealed continued demand strength. Ryanair transported 47.5 million passengers during Q3, marking 6% growth. Average fares increased 4% while ancillary revenue per passenger added 1%.

Overall revenue per passenger grew 3%. October school holiday travel and Christmas bookings supported the fare increases. The carrier operated 643 aircraft at year-end.

Updated Capacity and Fare Projections

Boeing aircraft deliveries are arriving faster than anticipated. This acceleration enabled Ryanair to revise its traffic outlook upward. The airline now projects 208 million passengers for FY26, up from 207 million.

The 4% traffic increase reflects robust travel demand and improved fleet availability. Additional aircraft provide capacity during high-demand periods throughout the year.

Fare performance continues trending above expectations. Ryanair now forecasts full-year fare growth of 8-9%, surpassing the previous 7% guidance. Management added 1-2 percentage points to the original projection based on recent booking trends.

Financial Position and Outlook

The company maintains its full-year profit guidance between €2.13 billion and €2.23 billion for pre-exceptional profit after tax. Management characterizes this forecast as cautious given current market dynamics.

Operating metrics demonstrate cost efficiency despite growth investments. The airline posted a 15.95% operating margin and 15.65% net margin. EBITDA margin reached 26.35%.

Balance sheet strength remains intact with a debt-to-equity ratio of 0.16. Interest coverage of 36.15 shows comfortable debt servicing capability. The Altman Z-Score of 4.41 indicates solid financial health.

Ryanair has hedged 80% of FY27 fuel costs at $67 per barrel. This hedging strategy provides cost predictability in volatile energy markets.

Three-year revenue growth stands at 43.7%. The stock trades with a market capitalization of $37.25 billion near 52-week highs. The P/E ratio of 12.89 compares favorably within the airline sector.

Analyst consensus supports a buy rating with a target price of $76.18. Institutional ownership accounts for 41.39% of outstanding shares.

The airline operates over 3,600 daily flights serving more than 240 destinations across 40 countries using primarily Boeing 737 aircraft.

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