Carnival Corporation Ltd. Common Shares (CCL) Earnings

Carnival Corporation Ltd. Common Shares

CCL · NYSE

Symbol: CCL
Type: Stock
Sector: Consumer Discretionary
Industry: Water Transportation
Exchange: NYSE

Carnival Cruise Line , part of Carnival Corporation (NYSE: CCL), the world's largest cruise company with a portfolio of cruise lines operating in over 800 ports & destinations worldwide - and is proud to be known as America's Cruise Line and for carrying more Americans and serving more U.S . homeports than any other. Carnival sails more than six million guests annually and in 2023 was the first cruise line to sail more than 100 million guests in total. Operating from 13 U.S. and two Australian homeports, as well as seasonally from Europe , Carnival hosts more than 95,000 guests on its ships every day of the year and employs more than 50,000 team members, representing 120 nationalities. Since its founding in 1972, Carnival has continually revolutionized the cruise industry and popularized the cruise vacation as an affordable and fun travel option.

Key Issues

Bullish view

Carnival and Royal Caribbean are benefiting from resilient cruise demand and strong bookings, while premium offerings support the recovery in travel spending.

Bearish view

The supplied evidence confirms current demand strength but does not establish how durable bookings will be or whether easing geopolitical tensions will persist.

Analyst Consensus

See all

Buy

20 analysts

$23

Current

—

Low

$35

Average

—

High

Average target implies +54.19% versus the current price.

Earnings History

BeatMissNo estimate

Aug 2026upcoming

Next quarter

Reports Oct 5, 2026.

Consensus is $1.36 EPS for Aug 2026 across 7 estimates, ranging $1.34 to $1.38.

CCL May 2026

Reported Jun 23, 2026

: 17.14%
: +0.66%

: $0.35
: $0.41
: —
: $6.66B

Reported results

: $6.66B; from $6.33B
: $851.00M; from $934.00M
: 12.77%; from 14.76%
: $537.00M; from $565.00M
: $0.39; from $0.42

Highlights

Earnings beat: Adjusted EPS was $0.41 versus the $0.35 consensus, a 17.1% surprise; GAAP diluted EPS was $0.39.
Record demand economics: Revenue reached a record $6.66 billion, up 5.3% year over year, while constant-currency net yields rose 2.2% for the twelfth consecutive quarter.
Adjusted profitability: Adjusted net income rose more than 20% to a record $569 million and adjusted EBITDA increased 4.9% to $1.58 billion.
GAAP comparison: Net income attributable to Carnival was $537 million versus $565 million a year ago, while operating income fell to $851 million from $934 million.
Cost and fuel pressure: Fuel prices were nearly 30% higher and reduced adjusted EPS by $0.06, while fuel consumption per ALBD improved 5.6%; adjusted cruise costs excluding fuel per ALBD were $119.60 versus $117.45.
Forward bookings: Carnival was 93% booked for 2026, with the remainder of the year ahead of the prior year at historically high prices; 2027 and later bookings were also ahead of prior-year levels.
Customer deposits: Deposits reached a record $9.0 billion, more than $450 million above the prior-year record and up from $7.2 billion at November 30, 2025.
Capital returns and leverage: The company had repurchased more than $450 million of stock, paid $207 million of quarterly dividends, and reduced net debt to adjusted EBITDA to 3.1x, more than 0.5 points better than a year earlier.

Analysis

Carnival’s second quarter was a demand-led adjusted earnings beat, with adjusted EPS of $0.41 exceeding the $0.35 consensus by 17.1%. Revenue of $6.66 billion was a record and increased 5.3% from $6.33 billion a year ago, while adjusted net income reached a record $569 million, up more than 20%. GAAP results were less favorable: net income attributable to Carnival declined to $537 million from $565 million and operating income fell to $851 million from $934 million. Sequentially, the business strengthened as the season progressed, with revenue up from $6.17 billion and net income more than doubling from $258 million in the first quarter, although Carnival’s third quarter is typically its strongest period.

The defining feature was continued pricing and onboard spending power despite geopolitical disruption and fuel inflation. Constant-currency net yields rose 2.2%, occupancy held at 104%, and onboard and other revenue increased 7.4% to $2.39 billion. Those gains were partly absorbed by fuel, capacity and operating-cost pressure. Management nevertheless raised the quality of the outlook: full-year 2026 constant-currency net yields are expected to rise approximately 1.75%, while adjusted cruise costs excluding fuel per ALBD are expected to increase 2.4%. Cash generation supported $381 million of first-half repurchases, $414 million of dividends and debt reduction.

Record demand economics

Carnival’s core revenue trends remained strong despite more than a quarter of geopolitical volatility, particularly for European and Mediterranean deployments. Total revenue increased 5.3% year over year to $6.66 billion, including a 4.1% increase in passenger ticket revenue to $4.27 billion and a 7.4% increase in onboard and other revenue to $2.39 billion. Capacity rose 2.0%, occupancy was unchanged at 104%, and higher onboard spending contributed $76 million of incremental revenue. Constant-currency net yields increased 2.2%, extending the company’s record streak to twelve consecutive quarters.

North America: Revenue increased to $4.41 billion from $4.21 billion, while adjusted operating income rose to $658 million from $650 million on stronger onboard spending, despite a 1.1-point decline in occupancy.
Europe: Revenue increased to $2.12 billion from $2.01 billion, but adjusted operating income fell to $326 million from $368 million as fuel, currency, crew travel and other costs outweighed pricing gains.

Bookings and deposits

The forward demand picture was the most important support for Carnival’s outlook. The company was 93% booked for 2026, with less inventory available than at the same point last year and booked pricing ahead of the prior year in constant currency. Management said it prioritized pricing integrity in European deployments rather than filling ships at lower prices during the period of Middle East-related volatility. Since March, booking volumes and prices for 2027 and beyond have also run ahead of prior-year levels, including a substantial increase in European bookings.

Customer deposits: Deposits reached an all-time high of $9.0 billion, more than $450 million above the prior-year record and $1.7 billion above the November 30, 2025 balance.
Capacity: Available lower berth days increased 2.0% year over year to 24.7 million, while passengers carried remained approximately 3.4 million and occupancy stayed at 104%.

Fuel and cost discipline

Operating leverage was constrained by unusually high fuel and operating costs. Cruise and tour operating expenses rose 8.7% to $4.23 billion, including a $121 million fuel-price impact, an $82 million capacity impact and $30 million of additional crew travel costs related to the Middle East conflict. Fuel expense increased to $595 million from $468 million, while fuel cost per metric ton rose to $793 from $614. Carnival offset part of that pressure through a 5.6% improvement in fuel consumption per ALBD. Adjusted cruise costs excluding fuel per ALBD increased to $119.60 from $117.45, but management said the result was in line with the prior year in constant currency.

Earnings impact: Fuel prices and currency reduced adjusted EPS by $0.06, or $73 million, yet adjusted net income still rose to $569 million from $470 million.
Margin pressure: Operating income declined 8.9% to $851 million from $934 million, while lower net interest expense of $285 million versus $341 million helped limit the decline in pretax earnings.

2026 outlook

Carnival maintained a constructive full-year framework while incorporating a temporary moderation from the Middle East conflict. Full-year net yields are expected to increase approximately 3.2% in current dollars and 1.75% in constant currency, or 2.25% after specified adjustments. Adjusted cruise costs excluding fuel per ALBD are expected to rise approximately 3.7% in current dollars and 2.4% in constant currency, or 1.3% after timing, destination and disruption adjustments. The third-quarter guide calls for constant-currency net yields up approximately 1.2% and adjusted cruise costs excluding fuel per ALBD up approximately 2.8%.

Profit outlook: Full-year adjusted EBITDA is expected at approximately $7.11 billion, adjusted net income at approximately $3.07 billion and adjusted diluted EPS at approximately $2.22.
Sensitivity: A 1% change in net yields would affect adjusted net income by approximately $111 million for the remainder of 2026, compared with $58 million for a 1% change in adjusted cruise costs excluding fuel per ALBD.

Capital returns and leverage

Improved cash generation allowed Carnival to combine fleet and destination investment with accelerated shareholder returns. Operating cash flow increased to $3.89 billion in the first six months from $3.32 billion a year earlier, while capital expenditures were $1.44 billion. The company repurchased $381 million of shares in the first half, including $390 million recorded in shareholders’ equity, and paid $414 million in dividends. Total debt declined to $24.89 billion from $26.64 billion at November 30, 2025, and net debt to adjusted EBITDA improved to 3.1x.

Liquidity: Carnival held $2.24 billion of cash and had $4.5 billion available under its revolving facility, for $6.7 billion of liquidity, plus $10.8 billion of undrawn export credit facilities.
Corporate structure: The company completed its dual-listed-company unification and redomiciliation to Bermuda in May, with no material change to its underlying business, assets or strategy.