Viking Holdings' Q3 Earnings: Analysts Raise Price Target to $64.88

Viking Holdings Ltd's Q2 results were in line with estimates, with revenues of $1.9b and EPS of $0.99. Analysts have updated their earnings model, with a consensus price target of $64.88, an 8.1% increase. The analysts expect revenues of $6.36b in 2025, a 9.6% improvement, and EPS of $2.45, a 56% increase.

Viking Holdings Ltd (VIK) has released its Q2 earnings report for 2025, showcasing robust financial performance that exceeded analyst expectations. The company reported revenues of $1.9 billion, a 18.5% increase year-over-year (YoY), and an adjusted earnings per share (EPS) of $0.99, surpassing the forecasted $0.79. This performance underscores the company's strong operational efficiency and growing demand for its travel experiences.

Key financial highlights include:
- Revenue Growth: Viking Holdings' total revenue grew by 18.5% YoY to $1.9 billion.
- Adjusted EBITDA: Adjusted EBITDA increased by 28.5% to $632.9 million.
- Net Income: Net income rose to $439.2 million, a substantial increase from the previous year’s $159.8 million.
- Gross Margin: Gross margin improved by 22.3%.
- Net Yield: Net yield increased by 8.0%.
- Occupancy Rates: High occupancy rates and robust advance bookings indicate sustained demand.

Analysts have responded positively to the results, updating their earnings models. The consensus price target has been revised to $64.88, an 8.1% increase, reflecting optimism about the company's future prospects. For 2025, analysts expect revenues of $6.36 billion, a 9.6% improvement, and EPS of $2.45, a 56% increase.

Looking ahead, Viking Holdings is committed to expanding its fleet and enhancing its offerings. The company plans to introduce new itineraries and increase capacity, positioning itself for continued growth. Additionally, the company is exploring new markets such as Egypt and India, which offer significant growth opportunities.

However, the company faces challenges such as rising vessel expenses, potential market saturation in established regions, and macroeconomic pressures that could impact consumer spending. Despite these challenges, Viking Holdings remains confident in its ability to fill new capacity and manage risks through strategic planning and cost management.

References:
[1] https://www.tipranks.com/news/company-announcements/viking-holdings-ltd-reports-strong-q2-2025-results
[2] https://seekingalpha.com/news/4486903-viking-holdings-solid-q2-results-overshadowed-by-eps-miss-river-metrics
[3] https://www.investing.com/news/transcripts/earnings-call-transcript-viking-holdings-q2-2025-beats-eps-expectations-stock-dips-93CH-4200218