Viking Holdings Posts Strong Q1, Eyes Growth Ahead

Viking Holdings Inc. (NASDAQ: VIK) is a relative newcomer to investors. The cruise line, known for its longships and child-free cruises, completed its initial public offering (IPO) in April 2024. The company just reported its first-quarter earnings for 2025. The results show a company that’s maturing, and the stock chart may confirm future growth even at a premium valuation.

The first quarter is historically the weakest for cruise lines, and seasonality is particularly notable with Viking. The company’s river cruise season primarily runs from April to October.

However, that doesn’t take away from the fact that Viking delivered a double beat with revenue of $897.06 million coming in over 6% higher than analysts’ estimates of $841.18 million. The topline number was also an impressive 24.9% higher on a year-over-year (YOY) basis. That was supported by a 14.9% increase in capacity passenger cruise days and 94.5% occupancy for the quarter.

Also, in a quarter when cruise lines typically post losses, Viking’s loss of $0.24 per share beat estimates of a $0.27 loss and improved from the $0.74 loss reported in May 2024.

Demand Remains Strong

Like many transportation stocks, Viking stock dropped sharply on the announcement of the Liberation Day tariffs. However, that appears to be an example of traders selling first and asking questions later. The cruise line industry appears to be insulated from tariff pressures.

Viking's target audience consists of a generation with the disposable income to travel. Viking’s business model includes no casinos on board the ships and no passengers under the age of 18. These are not party ships.

The stock's drop after the report may express concern about the number of passengers who sailed in the prior quarter, which came in approximately 88,000 below estimates. Still, there’s no evidence that demand is waning. The company announced that it has booked 92% of its capacity for this season.

If there was one hiccup in the earnings report, it’s that 2026 bookings are currently at 37%. That's slightly below the 39% it had booked at this same time last year.

New Ships Mean New Adventures

Another highlight for the company was the announcement of its newest river ship, the Viking Thoth, which will be delivered in October. This is the latest addition to its Nile River fleet, which the company plans to expand to 12 ships by 2027. One ship, the Viking Libra, will be powered by hydrogen, meaning it will be capable of operating with zero emissions. The company expects to have the ship delivered in 2026.

Plus, the company announced plans to take delivery of one ocean ship and nine more river vessels in 2025. More capacity along with favorable demand trends is a bullish sign for a company that posted an adjusted gross margin that was 23.8% higher YOY.

A Trend Reversal Looks Favorable

Although VIK stock has only been publicly traded for a year, it has shown several instances of making higher highs with higher lows. On the occasions when the stock has broken that pattern, it hasn’t been because of the company’s results but broader macroeconomic concerns that spooked investors.

That’s why the price action after the company’s quarterly earnings report looks favorable. The stock dropped nearly 7% immediately after the report was released. However, in midday trading, Viking stock cut that loss nearly in half, and it may confirm support at a level around December 2024, along with its 10-day simple moving average (SMA).

That said, the stock was overbought as it was heading into the earnings report. Investors may want to see a confirmed break above the May 19 close or if analysts raise their targets for the stock before adding to or taking a new position.

Where Should You Invest $1,000 Right Now?

Before you make your next trade, you'll want to hear this.

MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis.

Our team has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and none of the big name stocks were on the list.

They believe these five stocks are the five best companies for investors to buy now...

See The Five Stocks Here

The article "Viking Holdings Posts Strong Q1, Eyes Growth Ahead" first appeared on MarketBeat.