These 3 Turnaround Contenders Could Be Set for a Big 2026 Break

2026 could be a breakout year for several companies that have previously spent time patiently rebuilding or preparing. Years of headwinds related to reduced demand, pandemic travel disruptions, delayed launches and other factors have threatened the companies below in their ability to maximize their capital appreciation and appeal to investors.

These turnaround contenders—some of which have already performed quite well in recent quarters, despite the challenges—could deliver in an even bigger way this year if the circumstances are favorable.

Post-Pandemic Return to Travel Demand and Spending Trends Could Boost Royal Caribbean

Like all cruise companies, Royal Caribbean Cruises (NYSE: RCL) was once hit very hard by COVID-related travel stoppages and depressed demand. However, in recent years, Royal Caribbean experienced the return of healthier demand, with shares climbing by about 275% in the last five years. Driving this share growth is an increase in bookings, which for the latest reported quarter grew year-over-year (YOY) at "the high end of historical ranges," according to management.

Key to Royal Caribbean's continued turnaround success in 2026 will be sustained consumer spending, not only in terms of cruise bookings overall but in on-board purchases, which have also climbed in recent years. This will depend, of course, on consumer sentiment more broadly, which has struggled in the face of economic uncertainty. It will also depend on interest from younger spenders—in this way, Millennial and Gen Z travelers prioritizing experiences over traditional large purchases like homes may continue to drive Royal Caribbean's growth.

So far, it appears Royal Caribbean is on track for just this type of growth. The company boosted its full-year 2025 guidance for adjusted earnings per share (EPS) to a range of $15.58 to $15.63, up about a third YOY. Near-term operating cash flow should reach a healthy $6 billion, according to management, although higher tax and fuel costs could dampen this. 

After reinstating its pandemic-paused dividend in 2024, Royal Caribbean now pays a yield of 1.44%, which may be another reason why 20 analysts are optimistic about its prospects going forward and why the firm has expected upside potential of almost 15%.

Take-Two’s Next Blockbuster Could Drive Strong Growth Into 2026

Take-Two Interactive Software (NASDAQ: TTWO) is one of a small number of pure-play video game companies available to investors. The industry has experienced turbulence in the last several quarters, including a right-sizing that many firms completed after expanding too quickly amid pandemic-related demand boosts and a series of major acquisitions and consolidations. Take-Two has managed to navigate these headwinds fairly well, despite questions about game release timing and is now expected to continue its recent trend of strong net bookings growth.

In its fiscal second quarter, ended in September 2025, the company saw record second-quarter net bookings close to $2 billion and raised guidance to a range of $6.4 to $6.5 billion. The firm's revenue mix is also improving thanks to recurring consumer spending on live services and strong performance from its NBA 2K franchise.

The reason why 2026 could be pivotal for Take-Two, however, is due to its latest offering in the popular Grand Theft Auto (GTA) franchise. Despite delays, the release of GTA VI is still expected in November 2026 and is widely anticipated among both players and investors. If GTA VI matches or exceeds these expectations, it could boost both live-service revenue and upfront sales, improving Take-Two's margins and continuing the growing booking trend.

Improving Fundamentals Could Drive Resurgence in ABNB Shares, But Caution Is Warranted

Shares of short-term lodging marketplace Airbnb Inc. (NASDAQ: ABNB) had a tumultuous 2025 as the company navigated shifting regulations in some of its major city hubs, external pressures on travel habits, and concerns about brand trust. The company ended 2025 with shares up only about 3% for the year. However, despite a recent miss on EPS predictions in its latest quarterly report, 10% YOY revenue growth and record adjusted EBITDA alongside a healthy $1.3 billion in free cash flow point to fundamental strength.

Airbnb could see a turnaround in 2026 as it invests in new ventures to strategically expand its operations, including through bundled services that could increase revenue potential beyond its traditional lodging offerings. Analysts project almost 16% in earnings growth for the year and continued modest upside potential of around 6%, although they are generally cautious about ABNB share ratings. ABNB may be worth a closer look for investors willing to accept a greater degree of risk in the new year.

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The article "These 3 Turnaround Contenders Could Be Set for a Big 2026 Break" first appeared on MarketBeat.