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Key Takeaways Carnival is focusing on stronger pricing and advance bookings to drive higher yields in fiscal 2027.CCL expects fiscal 2027 capacity to rise 0.5% YoY, with nearly half the year booked at record pricing levels.Carnival faces rising Caribbean competition and a 0.4-point loyalty-related yield headwind in fiscal 2027. Carnival Corporation Ltd. (CCL - Free Report) is pursuing higher revenues and returns from its existing fleet, with fiscal 2027 capacity expected to increase 0.5% year over year. Booking volumes are growing faster than capacity, supporting the company’s efforts to manage advance reservations for higher pricing. Approximately half of fiscal 2027 is already booked, with advance occupancy and pricing at record levels.

Recent results demonstrate continued yield momentum. In the third quarter of fiscal 2026, net yields increased 2.4% year over year (in constant currency), reaching an all-time high and exceeding June guidance by more than one percentage point. Carnival also raised its fiscal 2026 constant-currency net yield growth outlook to approximately 2.3%, 0.5 percentage points above June guidance. Customer deposits reached a fiscal third-quarter record of approximately $7.6 billion, up about 7% despite broadly flat capacity over the next 12 months.

Carnival is adjusting deployment toward markets with strong demand and expanding itineraries featuring exclusive destinations. Greater emphasis on Northern Europe and increased access to Celebration Key and RelaxAway, Half Moon Cay support its efforts to differentiate cruises and sustain pricing.

The yield outlook remains subject to booking and competitive pressures. Fiscal 2027 booking strength is weighted toward the second through fourth quarters, while first-quarter sailings are still expected to reflect residual effects from the spring booking disruption. Increased industry capacity in the Caribbean adds competitive pressure. Carnival Rewards is also expected to create an additional 0.4-percentage-point accounting-related yield headwind in fiscal 2027.

Carnival’s ability to achieve higher fiscal 2027 yields with limited capacity growth will likely depend on sustaining pricing strength and maintaining higher pricing as remaining inventory is sold. Targeted deployment and differentiated destinations support that objective, while competitive supply and temporary loyalty-program accounting effects remain important considerations.

CCL’s Price Performance, Valuation & EstimatesShares of Carnival have dropped 1% in the past three months compared with the industry’s decline of 0.3%. In the same time frame, other industry players like Royal Caribbean Cruises Ltd. (RCL - Free Report) have declined 2.2%, while Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) has lost 20.7%.

CCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research

CCL stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.48, well below the industry average of 16.06. Then again, other industry players, such as Royal Caribbean and Norwegian Cruise, have P/E ratios of 14.40 and 10.85, respectively.

CCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Carnival’s fiscal 2026 earnings per share has increased from $2.23 to $2.26 over the past 30 days.

EPS Trend of CCL Stock
Image Source: Zacks Investment Research

The company’s fiscal 2026 earnings are likely to increase by 0.4% year over year. Conversely, industry players like Royal Caribbean are likely to witness growth of 13.8% year over year in 2026 earnings. NCLH is likely to project a fall of 26.1% year over year in 2026 earnings.

CCL stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways Carnival has about half of fiscal 2027 booked, with advance occupancy and pricing at record levels.Customer deposits reached a fiscal third-quarter record of about $7.6B, up roughly 7% year over year.Carnival's commercial execution, technology and differentiated vacation experiences support pricing momentum. Carnival Corporation Ltd. (CCL - Free Report) has approximately half of fiscal 2027 already booked, with advance occupancy and pricing at record levels. Strong reservations during the fiscal third quarter reinforced this position, while customer deposits reached a third-quarter record of approximately $7.6 billion, increasing about 7% year over year. Customer deposits increased even as passenger capacity is expected to remain broadly flat over the next 12 months.

Carnival’s advance booking momentum extends beyond fiscal 2027. Demand remains broad based, including healthy reservations for peak summer European itineraries. For fiscal 2028 sailings, Carnival has booked a higher proportion of capacity at higher prices than it had for fiscal 2027 sailings at the same point last year. Reservations are also being secured further ahead of departure, consistent with the company’s focus on managing bookings to support pricing.

However, the strength in Carnival’s fiscal 2027 booked position is concentrated in the second through fourth quarters. The spring booking disruption carried into first-quarter fiscal 2027 reservations, and the company continues to expect residual effects on those sailings.

Recent booking trends nevertheless show improvement. June marked an inflection point, followed by further acceleration in July and August. First-quarter fiscal 2027 bookings rebounded meaningfully over the past three months.

Carnival’s strategy to sustain pricing momentum combines sharper commercial execution, technology that improves decision-making and investments in differentiated vacation experiences. Its European, Alaskan and Caribbean deployments also remain central to its plans for continued yield growth.

CCL’s Price Performance, Valuation & EstimatesShares of Carnival have dropped 6.4% in the past three months compared with the industry’s decline of 2.9%. In the same time frame, other industry players like Royal Caribbean Cruises Ltd. (RCL - Free Report) have declined 3.5%, while Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) has lost 21.4%.

CCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research

CCL stock is currently trading at a discount. It is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.27, well below the industry average of 15.81. Then again, other industry players, such as Royal Caribbean and Norwegian Cruise, have P/E ratios of 14.20 and 10.56, respectively.

CCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for Carnival’s fiscal 2026 earnings per share has declined from $2.23 to $2.26 over the past 30 days.

EPS Trend of CCL Stock
Image Source: Zacks Investment Research

The company’s fiscal 2026 earnings are likely to increase by 0.4% year over year. Conversely, industry players like Royal Caribbean are likely to witness growth of 13.8% year over year in 2026 earnings. NCLH is likely to project a fall of 26.1% year over year in 2026 earnings.

CCL stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carnival Corp (NYSE:CCL) shares jumped more than 12% on Tuesday after the cruise operator reported third-quarter results above Wall Street estimates and raised its full-year net yield outlook, while pointing to strong bookings for 2027.

Revenue rose to $8.4 billion in the quarter, beating analysts' estimate of $8.3 billion, while adjusted earnings per share came in at $1.43, compared with expectations of $1.36, according to company data. Adjusted EBITDA was $3.0 billion, above estimates of $2.93 billion.

Carnival reported adjusted net income of $2.0 billion, compared with an estimate of $1.86 billion. Reported net income was $1.9 billion, while earnings per share rose 5% from a year earlier to $1.40.

The company raised its full-year 2026 net yield growth forecast to 3.8%, from 3.2% previously, according to Jefferies. Carnival maintained its adjusted EBITDA outlook at about $7.1 billion, while increasing its adjusted net income forecast to about $3.1 billion and adjusted EPS to about $2.24.

Jefferies said the higher yield outlook more than offset an increase in expected fuel costs to $768 per metric ton from about $713 previously. The brokerage expects Carnival's full-year adjusted EBITDA to come in at $7.05 billion.

Carnival's third-quarter net yields rose 2.4% year over year, while adjusted cruise costs excluding fuel and capacity increased 1.8%. Occupancy was 111.8%, reflecting the industry's practice of counting multiple occupancy on some cabins.

For the fourth quarter, however, Carnival forecast adjusted net income of about $274 million and adjusted EPS of $0.20, below analysts' estimates of $352 million and $0.25, respectively. It expects adjusted EBITDA of about $1.3 billion.

Carnival said bookings for 2027 were at record occupancy and pricing levels.

The company ended the quarter with net debt of 3.1 times trailing-12-month adjusted EBITDA. It repurchased nearly $800 million of shares and paid $204 million in dividends during the quarter.

Record bookings provide a strong foundation for 2027

, /PRNewswire/ -- Carnival Corporation (NYSE: CCL) announced financial results for the third quarter 2026 and provided an updated outlook.

All-time high net income1 of $1.9 billion with adjusted net income2 of $2.0 billion. All-time high revenues and net yields2 (in constant currency), demonstrating continued demand strength. Full year outlook operational improvement of more than $150 million in adjusted net income compared to June guidance, overcoming a spike in fuel prices. Record third quarter customer deposits up nearly seven percent compared to the prior year record, on flat capacity growth. 2027 booked occupancy and pricing at record levels. Completed approximately $1.2 billion of share repurchases year to date. "We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations. This performance reinforces the underlying trajectory of our business and the consistency of our commercial execution, as evidenced by our sustained track record of high-quality same-ship yield growth.

"Our world-class cruise lines and destinations, exceptional guest experiences delivered by the best team in travel and leisure, and enhanced demand-generation against intentionally measured capacity growth position us to continue driving higher returns. At the same time, we are putting our increasingly durable cash flow to work, reinvesting in our business while returning more capital to shareholders," said Carnival Corporation's Chief Executive Officer Josh Weinstein.

Third Quarter 2026 Results

Diluted EPS of $1.40; adjusted EPS2 of $1.43, in line with prior year despite a $0.10 ($131 million) unfavorable net impact from fuel prices and currency rates. Adjusted EBITDA2 of $3.0 billion, in line with last year's historic high and $110 million better than June guidance. Gross margin yields down 1.3 percent compared to prior year, driven by higher fuel prices. All-time high net yields (in constant currency) up 2.4 percent, over a point better than June guidance. Cruise costs per available lower berth day ("ALBD") increased 4.2 percent compared to prior year, driven by higher fuel prices. Adjusted cruise costs excluding fuel per ALBD2 (in constant currency) increased 1.8 percent, one point better than June guidance. Fuel consumption per ALBD improved 3.8 percent compared to prior year, reflecting the company's efforts and investments to continuously reduce fuel consumption. Advance Sales

"Our booking trends continued to strengthen throughout the quarter, with volumes meaningfully ahead of last year and far outpacing capacity growth. This momentum underscores the effectiveness of our demand generation efforts and the enduring appeal of our cruise lines," Weinstein said.

"For full-year 2027, both booked occupancy and pricing3 are at record levels, providing a strong foundation for another year of solid yield growth. Looking further ahead, 2028 is also off to an excellent start at higher occupancy and prices than last year."

"Customer deposits, another key leading indicator, also reached a third-quarter record of $7.6 billion, surpassing the prior-year record by $0.5 billion despite flat capacity growth over the next twelve months."

"Taken together, the ongoing strength we are seeing across our record booking curve, which has extended out even further, reinforces our confidence in the durability of demand for our cruise lines and the earnings power of our business," Weinstein added.

_______________
1 Net income attributable to Carnival Corporation.

2 See "Non-GAAP Financial Measures" and "Constant Currency."

3 Pricing in constant currency.

2026 Outlook

For the full year 2026, the company expects:

Operational improvement of more than $150 million in adjusted net income compared to June guidance, driven by improvements in net yields, adjusted cruise costs excluding fuel per ALBD and fuel consumption per ALBD, overcoming $150 million impact from increased fuel prices. Net yields (in constant currency) up approximately 2.3 percent compared to record 2025 levels and 0.5 percentage points better than June guidance. Net yields (in constant currency) up approximately 2.7 percent, after reflecting the impact of the summer 2025 close-in decision to redeploy away from the previously planned first quarter 2026 Arabian Gulf voyages and the impacts of loyalty program accounting for Carnival Cruise Line which requires the deferral of a portion of the ticket price paid by the guest. Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 2.2 percent and better than June guidance. Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 1.1 percent, after reflecting the timing of certain expenses between the years, partial year operating expenses from two exclusive destinations and the impact of certain elevated logistics costs as a result of disruption from the Middle East conflict. For the fourth quarter of 2026, the company expects net yields (in constant currency) up approximately 1.7 percent compared to 2025 record levels. Net yields (in constant currency) up approximately 2.3 percent after reflecting the impact of loyalty program accounting for Carnival Cruise Line.

See "Guidance" for additional information on the company's 2026 outlook, "Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and "Constant Currency."

Capital Allocation 

"Our strong operating cash flow enabled us to continue strengthening our financial position while advancing our commitment to return value to shareholders," commented Carnival Corporation's Chief Financial Officer David Bernstein. "With nearly $1.2 billion of share repurchases so far this year — nearly $800 million since the beginning of the third quarter — and our ongoing dividend program, we are making meaningful progress toward our PROPEL target of distributing cash to our shareholders, responsibly. During the third quarter we were also able to use cash on hand to opportunistically redeem $500 million of seven percent coupon notes, which were among our highest coupon debt. Even with the substantial capital we are returning to shareholders, we continue to expect year-over-year improvement in our balance sheet and leverage metrics."

During the quarter, S&P upgraded the company's credit rating, making it the second rating agency to award the company an investment grade rating. Following this upgrade, the company does not have any remaining secured debt.

The company distributed $204 million in dividends during the quarter, bringing the year to date total to $618 million.

Other Recent Highlights

Celebration Key commemorated one year of creating memorable guest experiences and a lasting positive impact in Grand Bahama, welcoming almost 2.5 million guests during its first year (learn more here). RelaxAway, Half Moon Cay and Isla Tropicale each welcomed more than 250,000 guests, following the completion of their recent enhancements. Carnival Cruise Line successfully launched its new Carnival Rewards loyalty program on September 1, generating substantial early engagement with co-branded credit card issuances increasing over 300 percent in the weeks following the launch compared to pre-announcement levels (learn more here). Carnival Cruise Line unveiled Carnival Destiny, arriving in 2029, the first ship in its next-generation Ace class (learn more here). Holland America Line announced Zuiderdam as the second ship set for major transformation as part of its Evolution program (learn more here). Princess Cruises became the first global cruise line to launch a native app in ChatGPT, creating a seamless AI-powered experience for travelers to discover, compare and plan a Princess cruise using real-time pricing and availability (learn more here). Recognitions: Named to TIME's World's Best Companies 2026, recognizing the company for leading with responsibility and resilience (learn more here). Named to TIME's America's Best Companies 2026, recognized for its excellence in employee satisfaction, sustained financial performance and sustainability achievements (learn more here). Named to Forbes America's Best Employers for Women for 2026, recognizing the company's commitment to fostering an environment of well-being, inclusion and belonging (learn more here). Released its 16th annual sustainability report, Doing Business Responsibly from Ship to Shore, detailing the company's continued progress towards its sustainability goals. Guidance

(See "Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and "Constant Currency")

4Q 2026

Full Year 2026

Year over year change

Current
Dollars

Constant
Currency

Current
Dollars

Constant
Currency

Net yields

Approx. 2.3%

Approx. 1.7%

Approx. 3.8%

Approx. 2.3%

Adjusted cruise costs excluding fuel per ALBD                    

Approx. 1.9%

Approx. 1.7%

Approx. 3.5%

Approx. 2.2%

4Q 2026

Full Year 2026

ALBDs (in millions) (a)

24.1

97.4

Capacity growth compared to prior year

(0.1) %

1.0 %

Fuel consumption in metric tons (in millions)

0.7

2.7

Fuel cost per metric ton consumed (excluding emission allowances)

$                        896

$                        768

Fuel expense (including emission allowances expense) (in billions)

$                       0.64

$                       2.25

Depreciation and amortization expense (in billions)

$                       0.75

$                       2.92

Interest expense, net of capitalized interest and interest income (in billions)

$                       0.26

$                       1.08

Adjusted EBITDA (in billions)

Approx. $1.30

Approx. $7.14

Adjusted net income (in millions)

Approx. $274

Approx. $3,080

Adjusted earnings per share - diluted

Approx. $0.20

Approx. $2.24

Weighted-average shares outstanding - basic

1,352

1,369

Adjusted weighted-average shares outstanding - diluted

1,358

1,376

(a)   See "Notes to Statistical Information."

Currencies (USD to 1)                                                                                     

4Q 2026

Full Year 2026

AUD

$                           0.71

$                           0.70

CAD

$                           0.71

$                           0.72

EUR

$                           1.15

$                           1.16

GBP

$                           1.34

$                           1.35

Sensitivities (impact to adjusted net income in millions)

4Q 2026

1% change in net yields

$                                                                      49

1% change in adjusted cruise costs excluding fuel per ALBD

$                                                                      30

10% change in fuel cost per metric ton (excluding emission allowances)     

$                                                                      59

100 basis point change in variable rate debt

$                                                                        4

1% change in currency exchange rates

$                                                                        7

Capital Expenditures

For the fourth quarter of 2026, newbuild capital expenditures are $0.3 billion and non-newbuild capital expenditures are $0.9 billion. These future capital expenditures will fluctuate with foreign currency movements relative to the U.S. Dollar.

Conference Call 

The company has scheduled a conference call with analysts at 10:00 a.m. EDT today to discuss its earnings release. This call can be listened to live and additional information including the company's earnings presentation can be obtained on its website at www.carnivalcorp.com. 

Carnival Corporation is the largest global cruise company and among the largest leisure travel companies, with a portfolio of world-class cruise lines – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn. Carnival Corporation trades under the ticker symbol CCL on the NYSE and is included in the S&P 500.

Additional information can be found on www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com, and www.seabourn.com. 

To learn more about Carnival Corporation's purpose and its commitment to sustainability, go to Our Impact.

Cautionary Note Concerning Factors That May Affect Future Results

Some of the statements, estimates or projections contained in this document are "forward-looking statements" that involve risks, uncertainties and assumptions with respect to us, including statements concerning future results, operations, strategy, outlooks, plans, goals, reputation, cash flows, liquidity and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like "will," "may," "could," "should," "would," "believe," "depends," "expect," "goal," "aspiration," "anticipate," "forecast," "project," "future," "intend," "plan," "estimate," "target," "indicate," "outlook," and similar expressions of future intent or the negative of such terms.

Forward-looking statements include, but are not limited to, statements that relate to our outlook and financial position, as well as, statements regarding:

•  Revenues

•  Financial outlook

•  Costs and expenses

•  Non-GAAP measures

•  Capital expenditures

•  Passenger capacity

•  Leverage metrics

•  Demand and booking trends

•  Shareholder returns

•  Progress toward achieving our goals and targets

Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our actual results, performance or achievements to differ materially from those expressed or implied by our forward-looking statements. This note contains important cautionary statements of the known factors that we consider could materially affect the accuracy of our forward-looking statements and adversely affect our business, results of operations and financial position. These factors include, but are not limited to, the following:

Events and conditions around the world, including geopolitical uncertainty, war and other military actions, pandemics, inflation, higher interest rates and other general concerns impacting the ability or desire of people to travel could lead to a decline in demand for cruises as well as have significant negative impacts on our financial condition and operations. Incidents concerning our ships, guests or the cruise industry may negatively impact the satisfaction of our guests and crew and lead to reputational damage. Adverse weather conditions or an increase in the frequency and/or severity of adverse weather conditions could have a material impact on our business and results of operations. Our targets, goals, aspirations, initiatives, public statements and disclosures, including those related to sustainability matters, may expose us to risks that may adversely impact our business. Cybersecurity incidents and data privacy breaches, as well as disruptions and other damages to our principal and other offices, information technology operations and system networks and failure to keep pace with developments in technology may adversely impact our business operations, the satisfaction of our guests and crew and may lead to fines, penalties and reputational damage. Our debt requires a significant amount of cash to service and our ability to generate sufficient cash depends on many factors, some of which may be beyond our control. Our financial condition and operations could be adversely impacted if we are unable to service our debt or satisfy our covenants. Increases in fuel costs, changes in the types of fuel consumed and availability of fuel supply may adversely impact our scheduled itineraries and costs. The loss of key team members, our inability to recruit or retain qualified shoreside and shipboard team members and increased labor costs could have an adverse effect on our business and results of operations. We rely on suppliers who are integral to the operations of our businesses. These suppliers and service providers may be unable to deliver on their commitments, which could negatively impact our business. Fluctuations in foreign currency exchange rates may adversely impact our financial results. Our investments in port destinations and exclusive islands may expose us to additional risks. Overcapacity and competition in the cruise and land-based vacation industry may negatively impact our cruise sales, pricing and destination options. Inability to implement our shipbuilding programs and ship repairs, maintenance and refurbishments may adversely impact our business operations and the satisfaction of our guests. Changes in and non-compliance with laws and regulations under which we operate, such as those relating to health, environment, safety and security, data privacy and protection, anti-money laundering, anti-corruption, economic sanctions, trade protection measures, labor and employment, and tax may be costly and lead to litigation, enforcement actions, fines, penalties and reputational damage. Factors associated with sustainability and the impact of greenhouse gases and other emissions on the environment could have a material impact on our business and operating results. The ordering of the risk factors set forth above is not intended to reflect our indication of priority or likelihood. There may be additional risks that we consider immaterial or which are unknown. Additional information about the factors that may affect future results is contained in our most recent Annual Report on Form 10-K as well as our other filings with the SEC, all of which are available on the SEC's website at www.sec.gov. 

Forward-looking statements should not be relied upon as a prediction of actual results. Subject to any continuing obligations under applicable law or any relevant stock exchange rules, we expressly disclaim any obligation to disseminate, after the date of this document, any updates or revisions to any such forward-looking statements to reflect any change in expectations or events, conditions or circumstances on which any such statements are based.

Forward-looking and other statements in this document may also address our sustainability progress, plans, and goals (including emissions and environmental-related matters). In addition, historical, current, and forward-looking sustainability-related statements may be based on standards and tools for measuring progress that are still developing, internal controls and processes that continue to evolve, and assumptions and predictions that are subject to change in the future and may not be generally shared.

CARNIVAL CORPORATION LTD.

CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)

(in millions, except per share data)

Three Months Ended

August 31,

Nine Months Ended

August 31,

2026

2025

2026

2025

Passenger ticket

$              5,529

$              5,430

$           13,825

$           13,366

Onboard and other

2,906

2,723

7,438

6,925

Total Revenues

8,435

8,153

21,263

20,292

Cruise and tour operating expenses:

Commissions, transportation and other

988

973

2,638

2,603

Onboard and other

902

883

2,217

2,154

Payroll and related

641

636

2,024

1,915

Fuel

615

451

1,607

1,384

Food

401

398

1,172

1,124

Other operating

1,081

1,044

3,135

2,858

Total Cruise and tour operating expenses

4,628

4,385

12,792

12,037

Selling and administrative expense

834

779

2,621

2,442

Depreciation and amortization expense

754

717

2,172

2,064

Operating Income

2,220

2,271

3,678

3,748

Interest income

17

15

41

34

Interest expense, net of capitalized interest

(285)

(317)

(862)

(1,034)

Debt extinguishment and modification costs

(23)

(111)

(23)

(366)

Other income (expense), net

10

0

(60)

(4)

Income Before Income Taxes

1,939

1,860

2,774

2,377

Income tax expense, net

(16)

(6)

(50)

(30)

Net Income

1,923

1,854

2,725

2,348

Less: net income attributable to noncontrolling interests

3

2

9

10

Net Income attributable to Carnival Corporation Ltd.

$              1,920

$              1,852

$              2,715

$              2,338

Earnings Per Share

Basic

$                1.41

$                1.41

$                1.97

$                1.78

Diluted

$                1.40

$                1.33

$                1.96

$                1.71

Weighted-Average Shares Outstanding - Basic

1,363

1,313

1,375

1,311

Weighted-Average Shares Outstanding - Diluted

1,368

1,402

1,382

1,401

CARNIVAL CORPORATION LTD.

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

(in millions, except par values)

August 31, 2026

November 30, 2025

ASSETS

Current Assets

Cash and cash equivalents

$                           1,220

$                           1,928

Trade and other receivables, net

670

678

Inventories

528

505

Prepaid expenses and other

1,004

1,108

  Total current assets

3,421

4,219

Property and Equipment, Net

43,397

43,494

Operating Lease Right-of-Use Assets, Net

1,228

1,328

Goodwill

579

579

Other Intangibles

1,181

1,177

Other Assets

1,166

890

$                         50,971

$                         51,687

LIABILITIES AND SHAREHOLDERS' EQUITY

Current Liabilities

Current portion of long-term debt

$                           2,036

$                           2,603

Current portion of operating lease liabilities

168

175

Accounts payable

1,159

1,245

Accrued liabilities and other

1,983

2,239

Customer deposits

7,129

6,831

  Total current liabilities

12,475

13,092

Long-Term Debt

21,876

24,037

Long-Term Operating Lease Liabilities

1,082

1,178

Other Long-Term Liabilities

1,333

1,097

Shareholders' Equity

Carnival Corporation Ltd. common shares, $0.01 par value; 1,960 shares
   authorized; 1,514 shares issued at 2026 and 1,298 shares issued at 2025

15

13

Carnival plc ordinary shares, $1.66 par value; no shares issued at 2026 and
217 shares issued at 2025

—

361

Additional paid-in capital

15,663

17,253

Retained earnings

6,712

4,817

Accumulated other comprehensive income (loss)

(1,714)

(1,810)

Treasury stock, 162 shares at 2026 and 131 shares at 2025 of Carnival
   Corporation Ltd. and no shares at 2026 and 72 shares at 2025 of
   Carnival plc, at cost

(6,488)

(8,364)

        Total shareholders' equity attributable to Carnival Corporation Ltd.

14,188

12,270

Noncontrolling interests

19

14

  Total shareholders' equity

14,207

12,284

$                         50,971

$                         51,687

CARNIVAL CORPORATION LTD.

OTHER INFORMATION

OTHER BALANCE SHEET INFORMATION (in millions)                                            

August 31, 2026

November 30, 2025

Debt (current and long-term)

$                         23,912

$                         26,640

Customer deposits (current and long-term)

$                           7,639

$                           7,246

Three Months Ended

August 31,

Nine Months Ended

August 31,

CASH FLOW INFORMATION (in millions)

2026

2025

2026

2025

Cash from operations

$              1,410

$              1,383

$              5,303

$              4,700

Capital expenditures (Purchases of Property and Equipment)

$                 698

$                 648

$              2,139

$              2,105

Dividends paid

$                 204

$                   —

$                 618

$                   —

Three Months Ended

August 31,

Nine Months Ended

August 31,

STATISTICAL INFORMATION

2026

2025

2026

2025

Passenger Cruise Days ("PCDs") (in millions) (a)

27.9

27.5

78.0

77.1

ALBDs (in millions) (b)

24.9

24.6

73.3

72.3

Occupancy percentage (c)

111.8 %

111.7 %

106.5 %

106.5 %

Passengers carried (in millions)

3.9

3.8

10.5

10.3

Fuel consumption in metric tons (in millions)

0.7

0.7

2.1

2.1

Fuel consumption in metric tons per thousand ALBDs

26.9

28.0

28.0

29.4

Fuel cost per metric ton consumed (excluding emission
allowances)

$             826

$             607

$             726

$             621

Currencies (USD to 1)

AUD

$            0.70

$            0.65

$            0.70

$            0.64

CAD

$            0.71

$            0.73

$            0.72

$            0.71

EUR

$            1.15

$            1.16

$            1.16

$            1.10

GBP

$            1.34

$            1.35

$            1.34

$            1.30

Notes to Statistical Information

(a)

PCD represents the number of cruise passengers on a voyage multiplied by the number of revenue-producing ship operating days for that voyage.

(b)

ALBD is a standard measure of passenger capacity for the period that we use to approximate rate and capacity variances, based on consistently applied formulas that we use to perform analyses to determine the main non-capacity driven factors that cause our cruise revenues and expenses to vary. ALBDs assume that each cabin we offer for sale accommodates two passengers and is computed by multiplying passenger capacity by revenue-producing ship operating days in the period.

(c)

Occupancy, in accordance with cruise industry practice, is calculated using a numerator of PCDs and a denominator of ALBDs, which assumes two passengers per cabin even though some cabins can accommodate three or more passengers. Percentages in excess of 100% indicate that on average more than two passengers occupied some cabins.

CARNIVAL CORPORATION LTD.

NON-GAAP FINANCIAL MEASURES

Three Months Ended

August 31,

Nine Months Ended

August 31,

(in millions, except per share data)

2026

2025

2026

2025

Net income attributable to Carnival Corporation Ltd.

$              1,920

$             1,852

$              2,715

$              2,338

(Gains) losses on ship sales and impairments

2

0

2

(101)

Debt extinguishment and modification costs

23

111

23

366

     Restructuring expense

8

3

8

5

     Other

10

17

58

17

Adjusted net income

$              1,963

$             1,982

$              2,807

$              2,625

  Interest expense, net of capitalized interest

285

317

862

1,034

  Interest income

(17)

(15)

(41)

(34)

  Income tax expense, net

16

(8)

50

16

  Depreciation and amortization expense

746

717

2,164

2,064

Adjusted EBITDA

$              2,993

$             2,993

$              5,842

$              5,706

Earnings per share - diluted (a)

$                1.40

$                1.33

$                1.96

$                1.71

Weighted-average shares outstanding - diluted (a)

1,368

1,402

1,382

1,401

Adjusted earnings per share - diluted (a)

$                1.43

$                1.43

$                2.03

$                1.91

Adjusted weighted-average shares outstanding -
diluted (a)

1,368

1,402

1,382

1,401

(See Non-GAAP Financial Measures)

(a)

Diluted earnings per share and diluted adjusted earnings per share include the add-back of dilutive interest expense related to the company's convertible notes of $18 million and $53 million for the three and nine months ended August 31, 2025.

CARNIVAL CORPORATION LTD.

NON-GAAP FINANCIAL MEASURES (CONTINUED)

Gross margin yields and net yields were computed by dividing the gross margin and adjusted gross margin by ALBDs as follows:

Three Months Ended August 31,

Nine Months Ended August 31,

(in millions, except yields data)

2026

2026

Constant

Currency

2025

2026

2026

Constant

Currency

2025

Total Revenues

$      8,435

$       8,153

$     21,263

$     20,292

Less: Cruise and tour operating expenses

(4,628)

(4,385)

(12,792)

(12,037)

Depreciation and amortization expense

(754)

(717)

(2,172)

(2,064)

Gross margin

3,054

3,051

6,299

6,191

Less: Tour and other revenues

(191)

(179)

(224)

(212)

Add: Payroll and related

641

636

2,024

1,915

Fuel

615

451

1,607

1,384

Food

401

398

1,172

1,124

Other operating

1,081

1,044

3,135

2,858

Depreciation and amortization expense

754

717

2,172

2,064

Adjusted gross margin

$      6,355

$      6,357

$       6,119

$     16,183

$     15,904

$     15,323

ALBDs

24.9

24.9

24.6

73.3

73.3

72.3

Gross margin yields (per ALBD)

$    122.55

$    124.20

$       85.94

$      85.57

Net yields (per ALBD)

$    254.99

$    255.09

$    249.11

$     220.80

$     216.99

$    211.79

(See Non-GAAP Financial Measures)

CARNIVAL CORPORATION LTD.

NON-GAAP FINANCIAL MEASURES (CONTINUED)

Cruise costs per ALBD, adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD were computed by dividing cruise
costs, adjusted cruise costs and adjusted cruise costs excluding fuel by ALBDs as follows:

Three Months Ended August 31,

Nine Months Ended August 31,

(in millions, except costs per ALBD data)

2026

2026

Constant

Currency

2025

2026

2026

Constant

Currency

2025

Cruise and tour operating expenses

$       4,628

$       4,385

$     12,792

$     12,037

Selling and administrative expense

834

779

2,621

2,442

Less: Tour and other expenses

(109)

(102)

(174)

(157)

Cruise costs

5,353

5,062

15,239

14,323

Less: Commissions, transportation and other

(988)

(973)

(2,638)

(2,603)

  Onboard and other costs

(902)

(883)

(2,217)

(2,154)

Gains (losses) on ship sales and impairments

(2)

0

(2)

101

Restructuring expense

(8)

(3)

(8)

(5)

Other

(2)

(4)

(36)

(4)

Adjusted cruise costs

3,451

3,456

3,201

10,338

10,187

9,659

Less: Fuel

(615)

(615)

(451)

(1,607)

(1,606)

(1,384)

Adjusted cruise costs excluding fuel

$       2,836

$       2,841

$       2,750

$       8,731

$       8,582

$       8,275

ALBDs

24.9

24.9

24.6

73.3

73.3

72.3

Cruise costs per ALBD

$     214.81

$     206.11

$     207.92

$     197.97

Adjusted cruise costs per ALBD

$     138.48

$     138.66

$     130.31

$     141.05

$     139.00

$     133.50

Adjusted cruise costs excluding fuel per ALBD

$     113.81

$     113.98

$     111.96

$     119.12

$     117.09

$     114.38

(See Non-GAAP Financial Measures)

Non-GAAP Financial Measures

We use non-GAAP financial measures and they are provided along with their most comparative U.S. GAAP financial measure:

Non-GAAP Measure

U.S. GAAP Measure

Use Non-GAAP Measure to Assess

•  Adjusted net income, adjusted
   EBITDA, adjusted EBITDA per
   ALBD and adjusted EBITDA margin

•  Net income attributable
   to Carnival Corporation Ltd.

•  Company Performance

•  Adjusted earnings per share

•  Earnings per share

•  Company Performance

•  Net debt to adjusted EBITDA

—

•  Company Leverage

•  Net yields

•  Gross margin yields

•  Cruise Segments Performance

•  Adjusted cruise costs per ALBD and
   adjusted cruise costs excluding fuel
   per ALBD

•  Cruise costs per ALBD

•  Cruise Segments Performance

•  Adjusted ROIC

—

•  Company Performance

The presentation of our non-GAAP financial information is not intended to be considered in isolation from, as a substitute for, or superior to the financial information prepared in accordance with U.S. GAAP. It is possible that our non-GAAP financial measures may not be exactly comparable to the like-kind information presented by other companies, which is a potential risk associated with using these measures to compare us to other companies.

Adjusted net income and adjusted earnings per share provide additional information to us and investors about our future earnings performance. These measures represent net income attributable to Carnival Corporation Ltd., excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance. We believe that gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other gains, losses and expenses are not part of our core operating business and are not an indication of our future earnings performance.

Adjusted EBITDA, adjusted EBITDA per ALBD and adjusted EBITDA margin provide additional information to us and investors about our core operating profitability, including on a per ALBD basis, by excluding certain gains, losses and expenses that we believe are not part of our core operating business and are not an indication of our future earnings performance as well as excluding interest, taxes and depreciation and amortization. In addition, we believe that the presentation of adjusted EBITDA provides additional information to us and investors about our ability to operate our business in compliance with the covenants set forth in our debt agreements. We define adjusted EBITDA as adjusted net income adjusted for (i) interest, (ii) taxes and (iii) depreciation and amortization. There are material limitations to using adjusted EBITDA. Adjusted EBITDA does not take into account certain significant items that directly affect our net income attributable to Carnival Corporation Ltd. These limitations are best addressed by considering the economic effects of the excluded items independently and by considering adjusted EBITDA in conjunction with net income attributable to Carnival Corporation Ltd. as calculated in accordance with U.S. GAAP. We define adjusted EBITDA margin as adjusted EBITDA divided by total revenues.

Net debt to adjusted EBITDA provides additional information to us and investors about our overall leverage. We define net debt to adjusted EBITDA as total debt less cash and cash equivalents divided by twelve-month adjusted EBITDA.

Net yields enable us and investors to measure the performance of our cruise segments on a per ALBD basis. We use adjusted gross margin rather than gross margin to calculate net yields. We believe that adjusted gross margin is a more meaningful measure in determining net yields than gross margin because it reflects the cruise revenues earned net of only our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees.

Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD enable us and investors to separate the impact of predictable capacity or ALBD changes from price and other changes that affect our business. We believe these non-GAAP measures provide useful information to us and investors and expanded insight to measure our cost performance. Adjusted cruise costs per ALBD and adjusted cruise costs excluding fuel per ALBD are the measures we use to monitor our ability to control our cruise segments' costs rather than cruise costs per ALBD. We exclude gains and losses on ship sales, impairment charges, restructuring costs and certain other gains and losses that we believe are not part of our core operating business as well as excluding our most significant variable costs, which are travel agent commissions, cost of air and other transportation, certain other costs that are directly associated with onboard and other revenues and credit and debit card fees. We exclude fuel expense to calculate adjusted cruise costs excluding fuel. The price of fuel, over which we have no control, impacts the comparability of period-to-period cost performance. The adjustment to exclude fuel provides us and investors with supplemental information to understand and assess the company's non-fuel adjusted cruise cost performance. Substantially all of our adjusted cruise costs excluding fuel are largely fixed, except for the impact of changing prices once the number of ALBDs has been determined.

Adjusted return on invested capital ("ROIC") provides additional information to us and investors about our operating performance relative to the capital we have invested in the company. We define ROIC as the twelve-month adjusted net income before interest expense and interest income divided by the monthly average of debt plus equity minus construction-in-progress, excess cash, goodwill and intangibles.

Reconciliation of Forecasted Data 

We have not provided a reconciliation of forecasted non-GAAP financial measures to the most comparable U.S. GAAP financial measures because preparation of meaningful U.S. GAAP forecasts would require unreasonable effort. We are unable to predict, without unreasonable effort, the future movement of foreign exchange rates and fuel prices. We are unable to determine the future impact of gains and losses on ship sales, impairment charges, debt extinguishment and modification costs, restructuring costs and certain other non-core gains and losses.

Constant Currency

Our operations primarily utilize the U.S. dollar, Australian dollar, euro and sterling as functional currencies to measure results and financial condition. Functional currencies other than the U.S. dollar subject us to foreign currency translational risk. Our operations also have revenues and expenses that are in currencies other than their functional currency, which subject us to foreign currency transactional risk.

Constant currency reporting removes the impact of changes in exchange rates on the translation of our operations plus the transactional impact of changes in exchange rates from revenues and expenses that are denominated in a currency other than the functional currency.

We report adjusted gross margin, net yields, adjusted cruise costs excluding fuel and adjusted cruise costs excluding fuel per ALBD on a "constant currency" basis assuming the current periods' currency exchange rates have remained constant with the prior periods' rates. These metrics facilitate a comparative view for the changes in our business in an environment with fluctuating exchange rates.

Examples:

The translation of our operations with functional currencies other than U.S. dollar to our U.S. dollar reporting currency results in decreases in reported U.S. dollar revenues and expenses if the U.S. dollar strengthens against these foreign currencies and increases in reported U.S. dollar revenues and expenses if the U.S. dollar weakens against these foreign currencies. Our operations have revenue and expense transactions in currencies other than their functional currency. If their functional currency strengthens against these other currencies, it reduces the functional currency revenues and expenses. If the functional currency weakens against these other currencies, it increases the functional currency revenues and expenses. SOURCE Carnival Corporation Ltd.

Cruise line operator Carnival Corporation (NYSE:CCL) looks to show investors that things are not as bad as feared when the company reports third-quarter financial results Tuesday before market open.

Here are the earnings estimates, what analysts are saying, and key items to watch.

Carnival Q3 Earnings EstimatesAnalysts expect Carnival to report third-quarter revenue of $8.30 billion, up from $8.15 billion in last year’s third quarter, according to data from Benzinga Pro.

The company missed revenue estimates from analysts in the most recent second quarter, while beating estimates in seven of the last 10 quarters overall. The third quarter is typically the highest for Carnival’s revenue.

Analysts expect Carnival to report third-quarter earnings per share of $1.36, down from $1.43 in last year’s third quarter.

The company has beaten analyst estimates for earnings per share in 15 straight quarters.

Read Next

What Analysts are SayingAnalysts have been lowering their price targets on Carnival stock ahead of the earnings report.

Bank of America Securities analyst Andrew Didora warned of higher oil prices and their impact on Carnival, with the company being the only major cruise line that doesn’t hedge its fuel prices.

Didora said this leaves Carnival "uniquely exposed to higher fuel prices."

The analyst lowered the price target on Carnival from $42 to $38, while reiterating a Buy rating.

Didora said the higher oil prices could impact Carnival’s fourth quarter more than its third, which could put an emphasis on guidance Tuesday.

Here are other recent analyst ratings on Carnival stock and their price targets:

JPMorgan: Maintained Overweight rating, lowered price target from $43 to $39 Susquehanna: Maintained Positive rating, lowered price target from $33 to $28 TD Cowen: Maintained Buy rating, lowered price target from $34 to $32 Goldman Sachs: Maintained Buy rating, lowered price target from $35 to $30 Key Items to WatchHigher fuel prices are likely to be a key topic and could end up sinking the stock, which currently trades near 16-month lows.

The company’s second-quarter results were overshadowed by guidance, which could happen again, with future guidance potentially hurt even more by rising oil costs.

In the second quarter, Carnival saw revenue up 5.3% year-over-year and highlighted strong passenger ticket revenue and overall strong demand. The company was 93% booked for 2026 at the time.

Ultimately, investors and analysts will be looking at financial results, customer deposits, demand, pricing and company commentary on future guidance and what higher oil prices mean.

Strong bookings and record customer deposits weren’t enough to carry the stock after second-quarter results and may not be enough again on Tuesday.

Carnival Stock Price ActionCarnival stock is down 0.1% to $22.22 on Monday versus a 52-week trading range of $21.45 to $34.03. Carnival stock is down 28% year-to-date in 2026.

Read Next

Photo: lia_mistral on Shutterstock.com

© 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Carnival Corp (NYSE:CCL) shares have fallen 27% since August as surging oil prices raise concerns about fuel costs, prompting Bank of America to cut its price target on the cruise operator to $38 from $42 while maintaining a ‘buy’ rating.

The broker said Carnival, as the only unhedged major cruise line, remains uniquely exposed to higher fuel prices, a dynamic expected to hurt fourth-quarter earnings more than the upcoming third-quarter results, due on September 29.

The bank cut its fourth-quarter earnings per share estimate to $0.20 from $0.27, and its 2027 estimate to $2.50 from $2.68, citing a 34% rise in Brent since Carnival's second-quarter results and a 14% increase this month alone.

The broker's third-quarter earnings per share estimate remains at $1.35, in line with company guidance.

BofA said recent data points had been stable to positive, supported by improving cruise spending and steady demand commentary from companies at its recent conference.

Aggregated BofA credit and debit card spending on cruise lines accelerated to growth in the mid-teens in July and August, up from high-single-digit growth in May and June.

The broker expects third-quarter net yields, a measure of revenue per available cabin, to rise 1.4%, slightly above company guidance of 1.2%.

The analyst said it would like to see Carnival remain active in share buybacks given recent weakness in the stock.

Carnival repurchased more than 17 million shares for $450 million in the second quarter and early third quarter under a $2.5 billion authorization approved in March, leaving $2 billion remaining.

Carnival shares are trading around 15% below the average price at which the company bought back stock earlier this year.

Carnival Corp (NYSE:CCL), the cruise operator, faces higher fuel costs and softer pricing that have prompted Jefferies to cut its earnings estimates ahead of the company’s third-quarter results on September 29.

Jefferies lowered its 2026 revenue estimate by 1% and cut its 2026 and 2027 EPS forecasts by 3%, while maintaining its 'buy' rating.

The broker said Brent crude has risen about 33% since Carnival’s second-quarter results on June 23, creating greater pressure because the company remains unhedged against fuel prices.

Jefferies expects fuel prices per ton to rise 1%, 8%, 8%, 7% and 2% from the third quarter of 2026 through the third quarter of 2027, respectively, as it assumes less near-term easing in crude prices.

The broker also lowered its revenue per passenger assumptions for the third and fourth quarters of 2026 and fiscal 2027 after pricing checks showed Carnival’s advertised fares trailing peers for several months.

Higher occupancy should partly offset the pricing pressure, with Jefferies saying consumers continue to respond favorably to Carnival’s value proposition.

Jefferies now forecasts revenue of $8.36 billion for the third quarter, $27.5 billion for fiscal 2026 and $28.4 billion for fiscal 2027, down from previous estimates of $8.38 billion, $27.6 billion and $28.5 billion.

The broker expects adjusted EBITDA of $2.93 billion, $7.05 billion and $7.58 billion for those periods, respectively, compared with previous forecasts of $2.96 billion, $7.14 billion and $7.75 billion.

Jefferies said its third-quarter adjusted EBITDA forecast remains above Carnival’s $2.88 billion guidance, which it views as reflecting the company’s conservative approach to guidance.

The broker cut its price target to $33 from $35, citing lower valuation multiples and greater fuel-driven earnings volatility, while valuing Carnival solely on fiscal 2027 estimates.

One of the travel industry's more remarkable turnaround stories is starting to take on water. Shares of Carnival Corp. (CCL -2.50%) have declined 26% in 2026. Smaller rivals Royal Caribbean and Norwegian Cruise Line are down 8% and 34%, respectively.

It's been a disappointing year, but Carnival and its peers have seen worse. The country's three largest ocean cruise liners were effectively shut down for more than a year in the wake of the COVID-19 crisis. It took another year after that to ramp up to full operations. Despite the obstacles, Carnival is generating record top-line results. Its trailing revenue of $27.3 billion is more than 30% above its pre-pandemic high-water mark of fiscal 2019.

Carnival keeps growing. It reinstated its dividend. It has rattled off a dozen consecutive earnings beats. Unfortunately for Carnival investors, like its ships, those on board are looking more at where the vessel is heading than where it's been. With another Wall Street pro issuing a cautious analyst note this week, let's look at some reasons why Carnival is out of favor -- and why it may even be a buying opportunity.

Image source: Getty Images.

Passing ships Carnival will offer up quarterly results later this month. It operates on a fiscal calendar that ends in November, and the outlook for its upcoming fiscal third-quarter report is dimming. Chris Woronka at Deutsche Bank became the latest analyst to take a cautious approach ahead of the fresh financials. He lowered his price target on the shares from $34 to $29 on Tuesday, sticking with his earlier hold rating.

He sees Carnival exceeding its earlier guidance for the August-ended fiscal quarter, but expects it to be a smaller beat than usual. The world's largest cruise line operator, by revenue, landed 21% ahead of where Wall Street pros were perched last time out.

The market wasn't impressed by those results, but that was mostly because its guidance for fiscal 2026 was soft. With oil prices heading higher since then, it will be hard to hide the impact that rising operating costs will have on its bottom line. Woronka is bracing for a challenging fiscal fourth quarter, and his firm is lowering Carnival's 2027 forecasts to Street-low levels.

Calling bottom on the bottom line Revenue growth is slowing, but even last quarter's 5% uptick is pushing overall top-line results to new highs. The news has been better in the near term on the other end of the cruising bellwether's income statement, but it's still somewhat deceptive.

Yes, Carnival's adjusted earnings soared 15% in the fiscal second quarter, three times its top-line increase. It was its second-largest beat over the past year. The last dozen reports have been impressive, but again, still somewhat deceptive.

PeriodEPS EstimateActual EPSSurpriseFiscal Q3 2023$0.75$0.8615%Fiscal Q4 2023($0.13)($0.07)46%Fiscal Q1 2024($0.18)($0.14)22%Fiscal Q2 2024($0.02)$0.11650%Fiscal Q3 2024$1.15$1.2710%Fiscal Q4 2024$0.07$0.1494%Fiscal Q1 2025$0.02$0.13485%Fiscal Q2 2025$0.35$0.2446%Fiscal Q3 2025$1.32$1.439%Fiscal Q4 2025$0.25$0.3439%Fiscal Q1 2026$0.18$0.209%Fiscal Q2 2026$0.34$0.4121% Data source: Yahoo! Finance. EPS = earnings per share (adjusted).

Despite the strong winning streak, Carnival stock's 45% gain over the last three years lags the market. It's also worth noting that the bottom line isn't matching the top line at all-time highs. Carnival's trailing net income of $3.1 billion is just shy of its fiscal 2018 peak.

Making matters worse, Carnival's fully diluted share count has more than doubled since fiscal 2018, so earnings per share have been cut in half. This isn't a deal breaker. Let's get into why I like Carnival as an investment here.

Premium Feature

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72/100

Today's Change

(

-2.50

%) $

-0.57

Current Price

$

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Don't rock the boat It isn't easy for a ship to navigate through foggy conditions. The same can be said about the cruise ship business. The global economy is facing inflationary pressures, and with its namesake cruise line targeting mass-market passengers, Carnival will be squeezed if consumers don't have enough money to bankroll watery getaways. Costs are rising, and if bookings start to slow, Carnival can get squeezed at both ends.

I still think Carnival can be a bon voyage for investors at today's compelling valuation. Carnival is trading for just 10 times trailing earnings. Look out to fiscal 2027, which starts in less than three months, and that multiple drops to less than 9.

Don't get caught up in the per-share profitability being half of what it was eight years ago. The stock is down nearly 70% from its 2018 all-time high. The valuation is compelling, and consumer appetite for cruising remains strong as long as the economy holds up. Carnival is down for legitimate reasons, but it's not out. It's just out of favor, and that can unlock a pleasure cruise for contrarian investors.

Key Takeaways CCL expects more than $7B in 2026 adjusted EBITDA despite geopolitical disruption and higher fuel prices.Carnival cut its full-year yield growth outlook by about 1 point amid pressure on European deployments.CCL's fuel efficiency improved over 5% in Q2, while tighter cost management is helping cushion yield pressure. Carnival Corporation Ltd. (CCL - Free Report) expects to generate more than $7 billion in adjusted EBITDA in fiscal 2026 despite geopolitical volatility, elevated fuel prices and near-term demand pressure across parts of Europe. The company’s fiscal second-quarter results reinforced the outlook, with revenues, yields, EBITDA, net income and customer deposits reaching record levels. Carnival also exceeded its March 2026 guidance for adjusted net income by $100 million, driven by continued commercial execution and a step-up in cost-efficiency efforts.

The key near-term challenge is the impact of geopolitical disruptions on European deployments, particularly in the Mediterranean. Elevated airfares and reduced international flight capacity for North American guests exacerbated the pressure. Carnival reduced its full-year yield growth outlook by approximately 1 percentage point and lowered European occupancy expectations by a couple of points. Management, however, indicated that it was prioritizing price integrity and viewed the lower occupancy as an appropriate long-term trade-off.

Cost discipline is providing an important offset to the yield pressure. Cruise costs, excluding fuel, are now expected to increase approximately 1.3% on a normalized basis, with intensified cost management generating an offsetting 1-percentage-point improvement in cruise costs, excluding fuel. Fuel efficiency improved by more than 5% in the fiscal second quarter, building on the more than 6% efficiency gain reported in the prior-year period. Improvements in depreciation expense, fuel consumption, fuel mix and net interest expense are also supporting earnings.

CCL’s more-than-$7-billion EBITDA outlook remains intact despite geopolitical headwinds, although prolonged moderation in European yields could pressure earnings. Cost discipline and fuel-efficiency gains are helping cushion the effects of the disruption, while improving European booking trends provide an encouraging signal. Carnival’s ability to sustain its cost and operational efficiencies will be important to keeping the EBITDA outlook on track.

How CCL’s EBITDA Outlook Compares With PeersRoyal Caribbean Group (RCL - Free Report) is also benefiting from strong EBITDA performance, supported by pricing and cost discipline. The company delivered $1.8 billion in adjusted EBITDA in the second quarter, with an EBITDA margin of 38%. Higher revenues and better-than-expected yields supported the result, while net cruise costs, excluding fuel, increased less than anticipated. RCL expects full-year net yields to rise 1.75%-2.25%, with net cruise costs, excluding fuel, expected to remain approximately flat, likely supporting margin expansion.

Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) is relying on cost savings to cushion softer top-line performance and support profitability. The company continues to identify savings opportunities through global sourcing, technology, artificial intelligence and offshoring, while targeting sub-inflationary or better unit-cost performance. These initiatives are expected to generate additional efficiencies over the next several quarters as NCLH works to strengthen its cost structure. For 2026, the company expects adjusted EBITDA of approximately $2.5 billion, reflecting softer-than-expected top-line performance, partially offset by better cost performance.

CCL’s Price Performance, Valuation & EstimatesShares of Carnival have declined 24.5% over the past three months compared with the industry’s fall of 7.7%.

CCL Stock’s Three-Month Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 9.07, significantly below the industry’s average of 15.86.

CCL’s P/E Ratio (Forward 12-Month) vs. Industry
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CCL’s fiscal 2026 earnings implies a year-over-year decline of 0.9%. The EPS estimates for fiscal 2026 have increased in the past 30 days.

EPS Trend of CCL Stock
Image Source: Zacks Investment Research

CCL stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

In the latest close session, Carnival (CCL - Free Report) was down 3.51% at $23.89. This change lagged the S&P 500's 0.33% loss on the day. Meanwhile, the Dow experienced a drop of 0.7%, and the technology-dominated Nasdaq saw a decrease of 0.12%.

The stock of cruise operator has fallen by 10.97% in the past month, lagging the Consumer Discretionary sector's gain of 2.03% and the S&P 500's gain of 3.87%.

The investment community will be paying close attention to the earnings performance of Carnival in its upcoming release. In that report, analysts expect Carnival to post earnings of $1.36 per share. This would mark a year-over-year decline of 4.9%. Alongside, our most recent consensus estimate is anticipating revenue of $8.36 billion, indicating a 2.59% upward movement from the same quarter last year.

For the full year, the Zacks Consensus Estimates project earnings of $2.23 per share and a revenue of $27.63 billion, demonstrating changes of -0.89% and +3.79%, respectively, from the preceding year.

Investors should also pay attention to any latest changes in analyst estimates for Carnival. Recent revisions tend to reflect the latest near-term business trends. As a result, we can interpret positive estimate revisions as a good sign for the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, ranging from #1 (Strong Buy) to #5 (Strong Sell), possesses a remarkable history of outdoing, externally audited, with #1 stocks returning an average annual gain of +25% since 1988. Within the past 30 days, our consensus EPS projection has moved 0.02% higher. Right now, Carnival possesses a Zacks Rank of #3 (Hold).

Valuation is also important, so investors should note that Carnival has a Forward P/E ratio of 11.1 right now. This expresses a discount compared to the average Forward P/E of 16.99 of its industry.

We can additionally observe that CCL currently boasts a PEG ratio of 1.03. The PEG ratio is similar to the widely-used P/E ratio, but this metric also takes the company's expected earnings growth rate into account. The Leisure and Recreation Services industry had an average PEG ratio of 1.22 as trading concluded yesterday.

The Leisure and Recreation Services industry is part of the Consumer Discretionary sector. With its current Zacks Industry Rank of 176, this industry ranks in the bottom 29% of all industries, numbering over 250.

The Zacks Industry Rank assesses the strength of our separate industry groups by calculating the average Zacks Rank of the individual stocks contained within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow CCL in the coming trading sessions, be sure to utilize Zacks.com.

Posted by Defense World Staff on Jul 27th, 2026

Delta Global Management LP acquired a new stake in shares of Carnival Corporation (NYSE:CCL – Free Report) during the first quarter, according to its most recent 13F filing with the Securities & Exchange Commission. The fund acquired 51,923 shares of the company’s stock, valued at approximately $1,344,000.

Other institutional investors have also recently added to or reduced their stakes in the company. BOCHK Asset Management Ltd acquired a new stake in shares of Carnival during the fourth quarter valued at approximately $25,000. Measured Wealth Private Client Group LLC purchased a new stake in shares of Carnival during the third quarter worth $25,000. Lloyd Advisory Services LLC. purchased a new position in Carnival in the fourth quarter valued at about $26,000. Newbridge Financial Services Group Inc. increased its position in Carnival by 381.0% in the 4th quarter. Newbridge Financial Services Group Inc. now owns 962 shares of the company’s stock worth $29,000 after purchasing an additional 762 shares during the last quarter. Finally, Optima Capital LLC purchased a new stake in shares of Carnival during the 4th quarter worth about $32,000. 67.19% of the stock is currently owned by institutional investors and hedge funds.

Insider Activity at Carnival In other news, insider Bettina Alejandra Deynes sold 43,058 shares of the company’s stock in a transaction that occurred on Thursday, May 28th. The shares were sold at an average price of $28.10, for a total value of $1,209,929.80. Following the completion of the transaction, the insider owned 69,238 shares in the company, valued at $1,945,587.80. This represents a 38.34% decrease in their ownership of the stock. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. 7.90% of the stock is currently owned by corporate insiders.

Analysts Set New Price Targets A number of research firms recently commented on CCL. Weiss Ratings downgraded Carnival from a “buy (b-)” rating to a “hold (c+)” rating in a report on Monday, May 18th. Stifel Nicolaus lifted their target price on shares of Carnival from $35.00 to $36.00 and gave the company a “buy” rating in a research note on Friday, June 12th. Tigress Financial boosted their target price on shares of Carnival from $40.00 to $42.00 and gave the stock a “buy” rating in a research report on Tuesday, June 30th. Sanford C. Bernstein lowered shares of Carnival from a “market perform” rating to a “market perform” rating in a research note on Tuesday, June 23rd. Finally, Citigroup raised their price target on shares of Carnival from $35.00 to $37.00 and gave the company a “buy” rating in a report on Tuesday, June 16th. One investment analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to data from MarketBeat.com, Carnival presently has an average rating of “Moderate Buy” and a consensus target price of $35.08.

View Our Latest Stock Analysis on Carnival

Carnival Stock Up 0.1% CCL stock opened at $26.36 on Monday. The stock has a market capitalization of $36.10 billion, a price-to-earnings ratio of 11.87, a price-to-earnings-growth ratio of 1.16 and a beta of 2.32. The company has a 50-day moving average of $27.52 and a two-hundred day moving average of $28.04. The company has a debt-to-equity ratio of 1.80, a current ratio of 0.33 and a quick ratio of 0.29. Carnival Corporation has a 52-week low of $23.45 and a 52-week high of $34.03.

Carnival (NYSE:CCL – Get Free Report) last announced its quarterly earnings data on Tuesday, June 23rd. The company reported $0.41 EPS for the quarter, beating analysts’ consensus estimates of $0.34 by $0.07. The business had revenue of $6.66 billion during the quarter, compared to analyst estimates of $6.69 billion. Carnival had a net margin of 11.24% and a return on equity of 26.11%. The firm’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the prior year, the business earned $0.35 earnings per share. Carnival has set its FY 2026 guidance at 2.220-2.220 EPS and its Q3 2026 guidance at 1.350-1.350 EPS. As a group, equities research analysts anticipate that Carnival Corporation will post 2.23 EPS for the current year.

Carnival Dividend Announcement The company also recently announced a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be issued a $0.15 dividend. The ex-dividend date is Friday, August 7th. This represents a $0.60 annualized dividend and a yield of 2.3%. Carnival’s dividend payout ratio (DPR) is 27.03%.

Carnival Company Profile (Free Report)

Carnival Corporation (NYSE: CCL) is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company’s core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.

See Also Five stocks we like better than Carnival RTX and Lockheed Earnings: Can Strong Guidance Reset the Defense Trade? These 4 Earnings Reports Expose the Market’s Growing Economic Divide Broadcom May Be the Biggest Winner From Alphabet’s Earnings Volatility Is Back and These 3 Market Tollbooths Are Best Positioned to Profit Want to see what other hedge funds are holding CCL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Carnival Corporation (NYSE:CCL – Free Report).

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Posted by Defense World Staff on Jul 22nd, 2026

Dimensional Fund Advisors LP grew its holdings in shares of Carnival Corporation (NYSE:CCL – Free Report) by 5.5% in the 1st quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission. The institutional investor owned 15,904,029 shares of the company’s stock after acquiring an additional 834,885 shares during the quarter. Dimensional Fund Advisors LP owned 1.28% of Carnival worth $411,372,000 at the end of the most recent quarter.

A number of other institutional investors and hedge funds have also recently made changes to their positions in the stock. Parallel Advisors LLC grew its holdings in shares of Carnival by 6.6% during the 1st quarter. Parallel Advisors LLC now owns 9,017 shares of the company’s stock valued at $233,000 after purchasing an additional 555 shares during the last quarter. SEB Asset Management AB acquired a new position in Carnival during the 1st quarter worth approximately $9,808,000. Swiss National Bank lifted its stake in Carnival by 13.5% in the 1st quarter. Swiss National Bank now owns 3,266,100 shares of the company’s stock valued at $84,527,000 after purchasing an additional 388,900 shares during the last quarter. World Equity Group Inc. bought a new position in Carnival in the 1st quarter valued at approximately $409,000. Finally, California Public Employees Retirement System boosted its position in Carnival by 21.6% in the first quarter. California Public Employees Retirement System now owns 2,359,463 shares of the company’s stock valued at $61,063,000 after buying an additional 419,407 shares in the last quarter. Institutional investors own 67.19% of the company’s stock.

Analyst Upgrades and Downgrades Several brokerages have recently issued reports on CCL. HSBC upgraded shares of Carnival from a “hold” rating to a “buy” rating and lowered their price target for the stock from $33.60 to $30.10 in a report on Monday, March 30th. Stifel Nicolaus raised their price objective on Carnival from $35.00 to $36.00 and gave the company a “buy” rating in a report on Friday, June 12th. Loop Capital assumed coverage on Carnival in a research report on Monday, June 1st. They set a “buy” rating and a $36.00 price objective on the stock. TD Cowen upped their target price on Carnival from $33.00 to $34.00 and gave the stock a “buy” rating in a report on Friday, May 15th. Finally, Freedom Capital upgraded Carnival to a “strong-buy” rating in a research report on Wednesday, June 3rd. One equities research analyst has rated the stock with a Strong Buy rating, twenty have issued a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and an average target price of $34.99.

Check Out Our Latest Analysis on CCL

Carnival Price Performance CCL stock opened at $26.13 on Wednesday. The company has a market capitalization of $35.79 billion, a P/E ratio of 11.77, a PEG ratio of 1.15 and a beta of 2.32. The company has a fifty day moving average price of $27.46 and a 200-day moving average price of $28.15. The company has a debt-to-equity ratio of 1.80, a quick ratio of 0.29 and a current ratio of 0.33. Carnival Corporation has a 52-week low of $23.45 and a 52-week high of $34.03.

Carnival (NYSE:CCL – Get Free Report) last issued its quarterly earnings data on Tuesday, June 23rd. The company reported $0.41 earnings per share for the quarter, topping the consensus estimate of $0.34 by $0.07. The company had revenue of $6.66 billion for the quarter, compared to analysts’ expectations of $6.69 billion. Carnival had a net margin of 11.24% and a return on equity of 26.11%. Carnival’s revenue for the quarter was up 5.3% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.35 earnings per share. Carnival has set its FY 2026 guidance at 2.220-2.220 EPS and its Q3 2026 guidance at 1.350-1.350 EPS. As a group, equities analysts expect that Carnival Corporation will post 2.23 EPS for the current year.

Carnival Announces Dividend The business also recently declared a quarterly dividend, which will be paid on Friday, August 28th. Shareholders of record on Friday, August 7th will be given a $0.15 dividend. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.3%. The ex-dividend date is Friday, August 7th. Carnival’s payout ratio is 27.03%.

Insider Buying and Selling at Carnival In other news, insider Bettina Alejandra Deynes sold 43,058 shares of the stock in a transaction dated Thursday, May 28th. The stock was sold at an average price of $28.10, for a total value of $1,209,929.80. Following the completion of the sale, the insider owned 69,238 shares of the company’s stock, valued at approximately $1,945,587.80. This represents a 38.34% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is accessible through the SEC website. Insiders own 7.90% of the company’s stock.

Carnival Profile (Free Report)

Carnival Corporation (NYSE: CCL) is a global cruise operator that provides leisure travel services through a portfolio of passenger cruise brands. The company’s core business is operating cruise ships that offer multi-night voyages and associated vacation services, including onboard accommodations, dining, entertainment, spa and wellness offerings, casinos, youth programs, and organized shore excursions. Carnival markets cruise vacations to a broad range of consumers, from value-focused travelers to premium and luxury segments, through differentiated brand positioning and onboard experiences.

Its operating structure comprises multiple well-known cruise brands that target distinct geographic and demographic markets.

See Also Five stocks we like better than Carnival Confidence Is Back, But Earnings Show the Consumer Is Being Picky AeroVironment’s Stock Is Down, But Drone Demand Is Taking Off 3M’s Redemption Arc: Can Q2 Earnings Change the Narrative? 3 Photonics Companies Making Quantum Tech Possible Want to see what other hedge funds are holding CCL? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Carnival Corporation (NYSE:CCL – Free Report).

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More Sea to See™ con un nuevo diseño de barco que permite contemplar el océano como nunca antes

Para ver un video de la presidenta Christine Duffy presentando el Carnival Destiny, haga clic aquí.
Para ver un video de la ceremonia de corte del acero del Carnival Destiny, haga clic aquí.

, /PRNewswire-HISPANIC PR WIRE/ -- Hoy, todo fue alegría en Monfalcone, Italia, cuando Carnival Cruise Line marcó un hito importante con la tradicional ceremonia de corte del acero para su barco más nuevo, el Carnival Destiny, que llegará en el verano de 2029 como el primero de tres barcos de su próxima generación, denominada oficialmente "Ace Class". El evento, celebrado en el astillero Fincantieri, reveló el nombre del barco y presentó un holograma en 3D que ofreció un primer vistazo al futuro de los cruceros de Carnival.

En la imagen, de izquierda a derecha: Biagio Mazzotta, presidente de Fincantieri; Josh Weinstein, director ejecutivo de Carnival Corporation; Cristiano Bazzara, director del astillero de Monfalcone; Christine Duffy, presidenta de Carnival Cruise Line; Pierroberto Folgiero, director ejecutivo y gerente general de Fincantieri; Micky Arison, presidente de la junta directiva de Carnival Corporation; y Luigi Matarazzo, director general de la División de Buques Mercantes de Fincantieri.

El Carnival Destiny llegará en el verano de 2029

El director del astillero de Monfalcone, Cristiano Bazzra, junto con la presidenta de Carnival Cruise Line, Christine Duffy, sostienen la primera pieza de acero para celebrar el inicio de la construcción La colaboración de Carnival con Fincantieri, líder mundial en la construcción naval, se remonta a hace más de 30 años, con el Carnival Destiny original, que marcó el inicio de una nueva era al convertirse en el crucero más grande del mundo en ese momento. En la actualidad, ese legado continúa con una clase diseñada para redefinir la experiencia de los pasajeros.

El Carnival Destiny incorporará una nueva forma de disfrutar del océano desde el barco y se convertirá en el megabarco con mayor apertura visual hacia el exterior que navega por los mares. Contará con una cantidad sin precedentes de camarotes con balcón y vista al mar, una cubierta tipo "lanai" renovada y más de 4.5 acres de vidrio, incluidas amplias paredes de vidrio de varios pisos, lo que permitirá disfrutar de vistas panorámicas en todo el barco. En conjunto, estos elementos permitirán disfrutar de vistas al mar desde más lugares a bordo, lo que mantendrá el océano siempre a la vista y redefinirá la forma en que los pasajeros se conectan con el mar.

El Carnival Destiny también ofrecerá un cambio radical en la forma en que los pasajeros interactúan a bordo. Más del 70 % de sus espacios y atracciones serán conceptos totalmente nuevos para Carnival, que abarcan experiencias gastronómicas renovadas, bares y salones de última generación, entretenimiento inmersivo y vibrantes espacios al aire libre.

"El Carnival Destiny se basa en un legado que ya transformó el mundo de los cruceros en el pasado y reinventa lo que los pasajeros pueden experimentar en el mar", afirmó Christine Duffy, presidenta de Carnival Cruise Line. "Con este barco, realzamos una vez más la experiencia de los pasajeros al crear una embarcación que transmite una mayor sensación de amplitud y que, al mismo tiempo, ayuda a los pasajeros a sentirse más conectados y, en definitiva, a divertirse más".

Carnival Destiny navegará hacia destinos de la "Paradise Collection" de Carnival, la mayor oferta de destinos exclusivos del sector de los cruceros en el Caribe, las Bahamas y México. Se publicarán detalles adicionales sobre las características y experiencias del Carnival Destiny más adelante este año y la entrega del barco está prevista para el verano de 2029. Se prevé el lanzamiento de otros dos barcos de la "Ace Class" para 2031 y 2033.

Para obtener más información sobre Carnival Cruise Line y reservar unas vacaciones en crucero, llame al 1-800-CARNIVAL, visite www.carnival.com o comuníquese con un asesor de viajes.

ACERCA DE CARNIVAL CRUISE LINE
Carnival Cruise Line, parte de Carnival Corporation (NYSE: CCL), es la línea de cruceros más grande en dos continentes, América del Norte y Australia, y se enorgullece de ser conocida como "la línea de cruceros de Estados Unidos", así como de transportar a más estadounidenses y prestar servicio en más puertos de origen estadounidenses que ninguna otra. Carnival transporta a más de seis millones de pasajeros al año y, en 2023, se convirtió en la primera empresa de cruceros en superar los 100 millones de pasajeros en total. Al operar desde 13 puertos estadounidenses y dos australianos, así como desde Europa en temporadas, Carnival recibe a más de 95,000 pasajeros en sus barcos todos los días del año, emplea a más de 50,000 personas de 120 nacionalidades.

Desde su fundación en 1972, Carnival no ha dejado de revolucionar el sector de los cruceros y ha popularizado las vacaciones en crucero como una opción de viaje asequible y divertida. La flota de 29 barcos de Carnival refleja un emocionante período de crecimiento que continúa con la incorporación de cinco barcos hasta 2033: un cuarto y quinto barco de la clase Excel previstos para 2027 y 2028, respectivamente; seguidos de otros tres nuevos barcos de una nueva clase innovadora actualmente en desarrollo. La novedad más reciente de Carnival para sus pasajeros es su nuevo y exclusivo destino, Celebration Key, en Gran Bahama, que se estrenó en 2025 para sumarse a la "colección Paradise" de la empresa, una selección de joyas del Caribe.

FUENTE Carnival Cruise Line

Key Takeaways Carnival kept cruise costs excluding fuel nearly flat through structural efficiency initiatives.CCL offset softer European demand with tighter cost controls and record pricing on booked inventory.Fleet upgrades, exclusive destinations and deleveraging support Carnival's long-term margin strategy. Carnival Corporation Ltd. (CCL - Free Report) demonstrated that disciplined cost management can offset external challenges, reinforcing confidence in its long-term earnings trajectory. Despite geopolitical disruptions, elevated fuel prices and weak consumer sentiment, the cruise giant delivered record second-quarter fiscal 2026 revenues, EBITDA, net income and customer deposits, while exceeding its March earnings guidance by $100 million.

The standout was Carnival's aggressive focus on operational efficiency. Cruise costs excluding fuel remained essentially flat year over year, outperforming prior guidance by roughly 250 basis points. Management attributed the improvement not only to favorable timing but also to structural initiatives that permanently lower the company's cost base. Hundreds of efficiency measures, ranging from supplier negotiations to operational process improvements, are expected to continue benefiting profitability in the coming quarters.

While the company lowered the full-year yield outlook due to softer European demand amid the prolonged Middle East conflict, it largely offset this pressure through stronger cost controls. Carnival now expects normalized cruise costs excluding fuel to rise only about 1.3% this year, reflecting embedded savings that should extend beyond 2026. Management also emphasized that booking trends have begun improving, with 93% of 2026 inventory already booked at record pricing levels and 2027 bookings running ahead of last year.

Beyond cost discipline, Carnival continues investing in high-return projects, including fleet modernization, exclusive destinations such as Celebration Key and RelaxAway, Half Moon Cay, and selective share repurchases. These initiatives, combined with continued deleveraging and structural efficiency gains, strengthen the company's ability to protect margins while supporting long-term earnings growth. If demand continues to normalize, Carnival's disciplined execution could provide additional upside for its shareholders.

How Do Carnival's Peers Compare on Margin StrategyAmong Carnival's closest competitors, Royal Caribbean Cruises (RCL - Free Report) continues to focus on premium pricing and operational efficiency to expand margins. The company has benefited from strong onboard spending, disciplined capacity additions and investments in private destinations such as Perfect Day at CocoCay, allowing it to maintain healthy pricing power while controlling costs. Royal Caribbean Cruises’ emphasis on high-return capital investments and technology-driven operations has supported robust profitability.

Norwegian Cruise Line Holdings (NCLH - Free Report) is also pursuing margin expansion through cost discipline and fleet optimization. The company is streamlining operations, enhancing onboard revenue opportunities and modernizing its fleet to improve fuel efficiency and guest experience. At the same time, Norwegian remains focused on balance-sheet improvement and expense control to offset macroeconomic uncertainties.

Compared with these peers, Carnival's latest strategy stands out for its ability to offset temporary revenue headwinds through structural cost reductions. Its permanent efficiency initiatives, combined with disciplined investments in fleet modernization and exclusive destinations, position the company to protect margins while remaining competitive as industry demand continues to recover.

CCL’s Price Performance, Valuation and EstimatesShares of Carnival have gained 7.5% in the past three months compared with the industry’s rise of 13%.

Price Performance
Image Source: Zacks Investment Research

From a valuation standpoint, CCL trades at a forward price-to-earnings ratio of 11.42X, below the industry average of 17.16X.

P/E (F12M)
Image Source: Zacks Investment Research

The Zacks Consensus Estimate for CCL’s 2026 sales and earnings implies a year-over-year uptick of 3.9% and a decline of 2.2%, respectively. EPS estimates for fiscal 2026 have decreased in the past 30 days.

Image Source: Zacks Investment Research

CCL currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Key Takeaways CCL has 93% of 2026 business booked, with pricing ahead of last year at historic highs.Customer deposits hit a record $9.0B as onboard revenues and pre-cruise sales increased.Fuel costs rose nearly 30%, while Europe disruption, logistics and currency risks remain. Carnival Corporation Ltd. (CCL - Free Report) is gaining investor attention as its recovery story shifts from broad cruise demand to stronger execution. Booking visibility, onboard spending and destination investments are giving the company more ways to support revenues and earnings.

Royal Caribbean Group (RCL - Free Report) , which currently carries a Zacks Rank #3 (Hold), remains a relevant peer for investors tracking cruise pricing and destination-led demand. Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) , which currently has a Zacks Rank #4 (Sell), also provides a useful comparison as investors assess whether cruise demand can support higher yields across the industry.

Carnival Bookings Stretch Far AheadCarnival’s booking curve remains the furthest out on record, giving the company unusual visibility into future revenues. For 2026, 93% of business is already on the books, with the booked position ahead of last year at historically high prices.

Demand is not limited to the current year. Since March, bookings for 2027 and beyond have been running ahead of prior-year levels on both volume and price, including stronger European bookings.

CCL Turns Demand Into Higher YieldsCarnival delivered its 12th consecutive quarter of record net yields. That matters because the company is not just filling ships, it is capturing demand at better price points.

Customer deposits reached an all-time high of $9.0 billion, up more than $450 million from the prior-year record. Higher second-quarter onboard revenues and increased pre-cruise onboard sales also show that more guest spending is being captured before sailings begin.

Carnival Builds a Destination AdvantageCarnival’s destination strategy is becoming a larger part of its investment case. Celebration Key now accommodates up to four ships and more than 13,000 guests on any given day, and is expected to welcome 3.5 million visitors in fiscal 2027.

RelaxAway, Half Moon Cay can support up to 12,000 visitors per day, while Isla Tropicale added a 48,000-square-foot recreational area. Carnival’s Alaska platform, with five brands, 19 ships, four embarkation ports, lodges, rail assets and motor coach operations, adds another layer of itinerary differentiation.

CCL Still Has Meaningful HeadwindsDemand strength does not remove margin risk. Cruise and tour operating expenses increased to $4.23 billion in the second quarter from $3.89 billion a year earlier, while selling and administrative expenses rose to $863 million from $816 million.

Fuel is another pressure point. Fuel expense rose to $595 million from $468 million, reflecting a nearly 30% increase in fuel prices. Geopolitical disruption in Europe, elevated logistics costs and currency sensitivity also remain risks that can affect yields, costs and earnings timing.

What Carnival’s Zacks Rank AddsThe bottom line is that Carnival’s story now depends on execution as much as demand. The company has stronger booking visibility, record deposits, higher onboard spending and a more differentiated destination portfolio, but cost and fuel volatility keep the setup from being one-sided.

CCL currently carries a Zacks Rank #3. It also has a Value Score of A, Growth Score of B, Momentum Score of B and VGM Score of A.

Those Style Scores are supportive, especially for investors looking for value, growth and momentum traits together. The Zacks Rank #3, however, points to a measured near-term outlook rather than a more aggressive bullish signal.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Carnival NYSE: CCL just reported its second fiscal quarter, and it’s clear from the numbers that the company is sailing in the right direction. But warning signs of rough waters ahead spooked investors.

Carnival Today

$28.26 -0.65 (-2.24%)

As of 03:29 PM Eastern

This is a fair market value price provided by Massive. Learn more.

52-Week Range$23.45▼

$34.03Dividend Yield2.12%

P/E Ratio12.73

Price Target$35.13

Based on the latest figures, Carnival continues to execute one of the stronger post-pandemic recoveries in travel. For the three months ended May 31, Carnival posted record levels of revenue, adjusted net income, net yields, and customer deposits. Even with geopolitical tensions and significantly higher fuel costs, the company’s net income rose more than 20%.

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But the company’s forward guidance did little to calm nerves, and that overshadowed an otherwise positive quarterly performance. The stock slid sharply after earnings were announced and closed the day down roughly 5%.

Most analysts still like the stock, but investors should recognize that with real strengths come risks.

Strong Quarterly Results Beat ExpectationsCarnival’s second-quarter results were convincing. Net income came in at $537 million, 5% lower than a year earlier, though adjusted net income, which strips out one-time items, reached $569 million, up more than 21% year-over-year. Overall, revenue of $6.66 billion represented a 5.3% increase over the same period a year ago.

Adjusted EBITDA for the quarter was a record $1.58 billion, up from $1.5 billion a year earlier. Diluted earnings per share (EPS) were 39 cents, and adjusted EPS rose more than 15% to 41 cents, up from 35 cents in the prior-year period and above analysts’ expectations.

The company also said it repurchased more than $450 million of company stock and, with a dividend yield of 2%, distributed $207 million in dividends in the latest quarter.

Healthy Margins Despite Higher Fuel CostsWhile the headline figures were impressive, the unit economics were also encouraging. Net yields in constant currency rose 2.2% for the quarter. Continued price discipline showed up as well, as adjusted daily cruise costs per bed, excluding fuel, held essentially flat year-over-year.

Predictably, fuel was the most visible cost challenge during the quarter. Carnival noted that the increase in earnings per share came despite fuel prices and currency movements, which lowered per share earnings by 6 cents, equal to an overall hit of $73 million for the quarter.

Given 30% higher fuel costs, gross margin yields were down 3.9%. But with adjusted earnings still hitting records, the operating model appears to be holding.

An additional bright spot was a 5.6% improvement in fuel consumption per available lower berth day, suggesting that operational efficiency was at least partially offsetting price pressures.

Debt Reduction Continues to Strengthen the Balance SheetThe latest numbers also showed Carnival’s recovery continuing after more than three years in the making. When the global cruise industry shut down during the pandemic, Carnival took on enormous debt to survive, suspended its dividend, and watched its stock collapse from the low $50s to nearly $7 in the space of a few months.

Its recovery has been methodical and convincing. As of May 31, long-term debt had dropped to $23.4 billion, continuing a steady decline from $32 billion near the end of 2022. The company’s net interest expense improved in the latest quarter to $285 million from $341 million a year earlier.

Strong Demand Faces External RisksThe rest of the year looks strong for the company, though concerns remain.

On the plus side, customer deposits, or the amount consumers have paid to book a cruise months in advance, hit a record $9 billion by the end of the quarter, up more than $450 million compared with the prior year record. In all, Carnival has booked 93% of its capacity and expects record net yields for the rest of the year, the company’s CEO said.

That positive outlook, however, is paired with cautionary forward concerns. The ongoing tensions in the Middle East have significantly cut into Carnival’s operations in the Mediterranean Sea, and concerns linger about demand and net yields going forward.

While earnings for the second quarter came in above analysts’ expectations, revenue missed fractionally from what analysts projected. Further instability in high-tourist areas could continue to cut into passenger bookings.

Further, energy costs remain a significant variable that can shift results quickly. And weather disruptions, macroeconomic slowdowns, or a shift in consumer spending priorities could each push a slowdown that’s not easy to offset. The consumer discretionary sector is always subject to volatility, and competitors, such as Royal Caribbean NYSE: RCL and Norwegian Cruise Line NYSE: NCLH, are stepping up their offerings.

Wall Street Remains OptimisticCarnival Stock Forecast Today12-Month Stock Price Forecast:
$35.13
22.27% Upside

Moderate Buy
Based on 26 Analyst Ratings

Current Price$28.73High Forecast$45.00Average Forecast$35.13Low Forecast$28.70Carnival Stock Forecast Details

Overall, though, Wall Street analysts like what they see. Of the 26 analysts covering the stock, the consensus rating is a Moderate Buy with a 12-month average target price of $35.13 per share, up more than 20% from current levels.

Finally recovering from its collapse five years ago, shares are up roughly 12% over the past three months. That upside got even more attractive after the pullback that occurred after Carnival reported second-quarter earnings—a reaction similar to what occurred after its first-quarter report.

In all, 21 analysts recommend Buy, while five have the stock as a Hold. The highest price target is $45, while the lowest is $28.70 per share.

Carnival Appeals Most to Aggressive InvestorsFor investors, the choices seem clear. Carnival Corporation has just delivered its best-ever quarter by several key measures, and the record customer deposit balance suggests demand is not fading.

Aggressive investors who are willing to accept cyclicality and balance-sheet risk could likely find the stock interesting. For those who believe in the durability of consumer travel demand, Carnival offers a combination of strong fundamentals, forward momentum, and a meaningful upside.

Conservative investors seeking above a 2% dividend yield, more predictable results, and greater balance-sheet strength might prefer other options.

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Carnival Corp (NYSE:CCL) shares fell almost 6% on Tuesday after the cruise operator issued a third quarter profit outlook below Wall Street expectations, overshadowing stronger-than-expected second-quarter results and record revenue.

The company reported adjusted earnings of $0.41 per share for the quarter ended May 31, ahead of analysts' estimates of $0.33 per share.

Revenue rose to a record $6.7 billion, slightly above the consensus forecast of $6.68 billion.

Net income attributable to Carnival reached $537 million, while adjusted net income climbed more than 20% year over year to a record $569 million. Adjusted EBITDA also hit a record $1.6 billion.

Carnival said customer deposits reached an all-time high of $9 billion, up more than $450 million from the previous year's record, while bookings for the remainder of 2026 remain ahead of last year at historically high prices.

For the third quarter, Carnival expects adjusted earnings of $1.35 per share, below analysts' expectations of $1.42. The company projected full-year 2026 adjusted earnings of $2.22 per share, also below the consensus $2.23.

Carnival CEO Josh Weinstein said the company delivered its "twelfth consecutive quarter of record net yields" despite "extreme geopolitical headwinds and nearly 30% higher fuel costs."

The company said booking trends for Mediterranean itineraries were affected by the prolonged conflict in the Middle East, prompting it to prioritize pricing over occupancy. Carnival noted that it is 93% booked for 2026, with less inventory remaining for sale than at the same point last year.

Weinstein said recent booking trends indicate the company is beginning to see "a reversal of these headwinds," adding that demand for 2027 and beyond continues to run ahead of prior-year levels.

For 2026, Carnival expects net yields to increase about 3.2% from 2025 levels and adjusted cruise costs excluding fuel per available lower berth day to rise approximately 3.7%. The company said elevated logistics costs linked to disruptions from the Middle East conflict are incorporated into its outlook.