Carnival (NYSE:CCL) Announces Earnings Results

Carnival (NYSE:CCL) posted its quarterly earnings results on Friday. The company reported $0.34 earnings per share for the quarter, topping the consensus estimate of $0.25 by $0.09, Zacks reports. The firm had revenue of $6.33 billion for the quarter, compared to analyst estimates of $6.38 billion. Carnival had a return on equity of 27.86% and a net margin of 10.07%.The business’s quarterly revenue was up 6.6% on a year-over-year basis. During the same quarter in the previous year, the firm earned $0.14 EPS. Carnival updated its Q1 2026 guidance to 0.170-0.170 EPS and its FY 2026 guidance to 2.480-2.48 EPS.

Here are the key takeaways from Carnival’s conference call:

• Record 2025 results: Management reported all-time highs in quarterly revenues, yields, operating income and EBITDA, delivering over $3.0 billion to the bottom line (≈60% YoY increase) and the highest ROIC in 19 years.
• 2026 financial guidance: Company forecasts normalized yield growth of ~3%, net cruise costs ex‑fuel up ~2.5% (3.25% reported), >$3.45 billion net income (+12% YoY) and ~$7.6 billion of EBITDA for 2026.
• Balance-sheet progress and capital returns: Carnival reached investment‑grade (net debt/EBITDA 3.4x), plans to get below 3x in 2026, has called convertible debt, resumed a dividend at $0.15/quarter and expects opportunistic buybacks.
• Near-term headwinds: Management flagged a significant Caribbean capacity increase (industry supply spikes concentrated in Q1), higher first‑quarter unit costs (adj. cruise costs ex‑fuel up ~5.9% in Q1) and rising regulatory/tax costs (emissions/Pillar Two) that weigh on near‑term performance.
• Strategy and corporate actions: Company is pushing destination development (Celebration Key, Half Moon Cay), AI-driven marketing/efficiency, and a proposed DLC unification to a single NYSE listing to simplify governance and (management says) reduce costs.

Carnival Stock Up 9.8%

Carnival stock opened at $31.13 on Friday. The company’s 50-day moving average price is $27.26 and its two-hundred day moving average price is $28.34. The company has a quick ratio of 0.30, a current ratio of 0.34 and a debt-to-equity ratio of 2.10. The stock has a market cap of $36.34 billion, a P/E ratio of 15.56, a P/E/G ratio of 0.58 and a beta of 2.53. Carnival has a twelve month low of $15.07 and a twelve month high of $32.80.

Wall Street Analysts Forecast Growth

A number of equities analysts recently weighed in on CCL shares. JPMorgan Chase & Co. boosted their target price on shares of Carnival from $34.00 to $39.00 and gave the stock an “overweight” rating in a report on Monday, September 15th. Zacks Research raised shares of Carnival from a “hold” rating to a “strong-buy” rating in a report on Tuesday, October 7th. Citigroup cut their target price on shares of Carnival from $38.00 to $36.00 and set a “buy” rating for the company in a research note on Friday, December 12th. Wells Fargo & Company boosted their price target on Carnival from $34.00 to $35.00 and gave the stock an “overweight” rating in a research report on Friday, December 12th. Finally, Morgan Stanley upped their price objective on Carnival from $30.00 to $32.00 and gave the company an “equal weight” rating in a research note on Wednesday, October 1st. One investment analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have given a Hold rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $34.00.

Carnival News Summary

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Q4 EPS beat and record 2025 profits — Carnival reported stronger-than-expected adjusted EPS and posted record full-year profits driven by higher yields, rising demand and cost discipline; investors view the earnings surprise as confirmation of the recovery thesis. Zacks: Carnival Q4 Earnings Beat
• Positive Sentiment: Dividend reinstated — Management announced the return of a cash dividend, a visible shift toward returning capital that buoyed investor sentiment and supports multiple expansion. Proactive: Dividend Return & Single Listing Plan
• Positive Sentiment: FY2026 guidance above Street — Carnival set FY2026 EPS at $2.48, ahead of consensus (~$2.41), signaling confidence in pricing power and demand resilience into next year. Reuters: Forecast Above Estimates
• Positive Sentiment: Proposal to unify listings — Carnival proposed a plan to move to a single NYSE-listed share, which could improve liquidity and attract U.S.-centric investors if approved. Proactive: Single NYSE Listing
• Positive Sentiment: Analyst support — Multiple firms reiterated buy ratings or bullish notes after the results and outlook, reinforcing positive analyst momentum. TipRanks: Analyst Commentary
• Neutral Sentiment: Unusual options activity — Call buying spiked intraday (large increase in call volume), indicating speculative bullish interest that can amplify moves but may reverse quickly.
• Neutral Sentiment: Management interviews and color — CEO interviews provided supportive commentary on consumer demand and pricing; useful for sentiment but not new fundamentals. YouTube: CEO Interview
• Negative Sentiment: Revenue slightly missed estimates and Q1 guide soft vs. consensus — Q4 revenue came in marginally below Street expectations and Q1 2026 EPS guidance (0.17) is a tick under consensus (0.18), giving short-term ammunition to skeptics about near-term momentum. Press Release / Slide Deck

Hedge Funds Weigh In On Carnival

Several institutional investors and hedge funds have recently made changes to their positions in the company. Measured Wealth Private Client Group LLC acquired a new stake in Carnival during the 3rd quarter worth approximately $25,000. Johnson Financial Group Inc. bought a new position in Carnival during the 3rd quarter worth $32,000. Towarzystwo Funduszy Inwestycyjnych PZU SA increased its position in Carnival by 90.9% during the 3rd quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,100 shares of the company’s stock worth $61,000 after buying an additional 1,000 shares during the period. Wealth Watch Advisors INC acquired a new stake in shares of Carnival during the third quarter worth $71,000. Finally, Brown Brothers Harriman & Co. boosted its position in shares of Carnival by 103.9% in the third quarter. Brown Brothers Harriman & Co. now owns 5,159 shares of the company’s stock valued at $149,000 after acquiring an additional 2,629 shares during the period. Institutional investors and hedge funds own 67.19% of the company’s stock.

About Carnival

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.