It has been challenging to project the tropical cyclone (TC) intensity, structure and destructive potential changes in a warming climate. Here, we compare the sensitivities of TC intensity, size and destructive potential to sea surface warming with and without a pre-storm atmospheric adjustment to an idealized state of Radiative-Convective Equilibrium (RCE). Without RCE, we find large responses of TC intensity, size and destructive potential to sea surface temperature (SST) changes, which is in line with some previous studies. However, in an environment under RCE, the TC size is almost insensitive to SST changes, and the sensitivity of intensity is also much reduced to 3% °C−1–4% °C−1. Without the pre-storm RCE adjustment, the mean destructive potential measured by the integrated power dissipation increases by about 25% °C−1 during the mature stage. However, in an environment under RCE, the sensitivity of destructive potential to sea surface warming does not change significantly. Further analyses show that the reduced response of TC intensity and size to sea surface warming under RCE can be explained by the reduced thermodynamic disequilibrium between the air boundary layer and the sea surface due to the RCE adjustment. When conducting regional-scale sea surface warming experiments for TC case studies, without any RCE adjustment the TC response is likely to be unrealistically exaggerated. The TC intensity–temperature sensitivity under RCE is very similar to those found in coupled climate model simulations. This suggests global mean intensity projections under climate change can be understood in terms of a thermodynamic response to temperature with only a minor contribution from any changes in large-scale dynamics.