Carnival (NYSE:CCL) Announces Earnings Results, Beats Expectations By $0.07 EPS

Carnival (NYSE:CCL) issued its quarterly earnings results on Tuesday. The company reported $0.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.34 by $0.07, FiscalAI reports. Carnival had a return on equity of 26.92% and a net margin of 11.48%.The company had revenue of $6.66 billion during the quarter, compared to the consensus estimate of $6.69 billion. During the same period last year, the company earned $0.35 earnings per share. Carnival’s revenue was up 5.3% on a year-over-year basis. Carnival updated its FY 2026 guidance to 2.220-2.220 EPS and its Q3 2026 guidance to 1.350-1.350 EPS.

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

• Carnival reported a record second quarter with all-time highs in revenue, yields, EBITDA, net income, and customer deposits, while net income rose more than 20% year over year to $569 million.
• The company cut full-year yield guidance by about 100 basis points, primarily due to prolonged Middle East geopolitical disruption that hit Europe more than other regions and reduced near-term demand.
• Management said the demand headwinds are transitory, with booking trends improving recently and 93% of the business already on the books at record prices for the remaining quarters of 2026.
• Carnival highlighted strong cost control, with cruise costs ex-fuel essentially flat in the quarter and several savings initiatives expected to deliver ongoing benefits beyond this year.
• The company continued to invest in long-term growth through fleet modernization, destination expansion, and capital returns, including new Princess ship orders, the completion of Celebration Key and RelaxAway projects, $450 million of share repurchases, and a lower net leverage ratio of 3.1x adjusted EBITDA.

Carnival Stock Performance

CCL stock opened at $28.75 on Wednesday. The company has a debt-to-equity ratio of 1.82, a current ratio of 0.30 and a quick ratio of 0.26. The company has a market capitalization of $35.62 billion, a P/E ratio of 12.78, a PEG ratio of 1.33 and a beta of 2.32. The business has a 50-day moving average price of $27.34 and a 200 day moving average price of $28.37. Carnival has a 1-year low of $23.45 and a 1-year high of $34.03.

Carnival Announces Dividend

The company also recently declared a quarterly dividend, which was paid on Friday, May 29th. Stockholders of record on Monday, May 18th were paid a dividend of $0.15 per share. The ex-dividend date was Monday, May 18th. This represents a $0.60 annualized dividend and a dividend yield of 2.1%. Carnival’s dividend payout ratio (DPR) is currently 26.67%.

Insider Buying and Selling

In other Carnival news, insider Bettina Alejandra Deynes sold 43,058 shares of the company’s stock in a transaction on Thursday, May 28th. The stock was sold at an average price of $28.10, for a total transaction of $1,209,929.80. Following the completion of the sale, 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 at the SEC website. Also, Director Sir Jonathon Band sold 11,988 shares of the company’s stock in a transaction on Wednesday, April 1st. The stock was sold at an average price of $26.19, for a total value of $313,965.72. Following the sale, the director owned 52,601 shares of the company’s stock, valued at $1,377,620.19. This trade represents a 18.56% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold 55,058 shares of company stock valued at $1,524,195 in the last three months. 7.90% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Carnival

Institutional investors have recently bought and sold shares of the company. Atlas Capital Advisors Inc. purchased a new position in Carnival in the 4th quarter worth $164,000. Quarry LP boosted its stake in shares of Carnival by 458.0% in the fourth quarter. Quarry LP now owns 5,535 shares of the company’s stock worth $169,000 after buying an additional 4,543 shares during the last quarter. Gilpin Wealth Management LLC acquired a new stake in Carnival during the fourth quarter worth about $67,000. Towarzystwo Funduszy Inwestycyjnych PZU SA raised its position in Carnival by 90.9% during the third quarter. Towarzystwo Funduszy Inwestycyjnych PZU SA now owns 2,100 shares of the company’s stock valued at $61,000 after acquiring an additional 1,000 shares in the last quarter. Finally, Brown Brothers Harriman & Co. raised its position in Carnival by 103.9% during 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 in the last quarter. 67.19% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analyst Weigh In

Several research firms have recently issued reports on CCL. Mizuho raised their target price on shares of Carnival from $38.00 to $39.00 and gave the stock an “outperform” rating in a report on Friday, March 27th. Freedom Capital raised shares of Carnival to a “strong-buy” rating in a research note on Wednesday, June 3rd. William Blair restated an “outperform” rating on shares of Carnival in a research report on Tuesday, March 3rd. Melius Research set a $36.00 price objective on Carnival in a research report on Wednesday, June 17th. Finally, Stifel Nicolaus increased their target price on Carnival from $35.00 to $36.00 and gave the stock a “buy” rating in a research note on Friday, June 12th. One equities research analyst has rated the stock with a Strong Buy rating, twenty have given a Buy rating and five have given a Hold rating to the stock. According to data from MarketBeat.com, the stock has a consensus rating of “Moderate Buy” and an average price target of $34.90.

Key Carnival News

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Carnival reported record Q2 results, including adjusted EPS of $0.41 versus expectations around $0.34-$0.35, revenue of $6.66 billion, record net yields, and record customer deposits, showing demand remains resilient. Article Title
• Positive Sentiment: Management highlighted strong bookings, ongoing yield growth, cost efficiencies, and continued deleveraging, which analysts at UBS and William Blair said support further upside. Article Title
• Positive Sentiment: Carnival said it surpassed $450 million in stock repurchases, reinforcing shareholder-return momentum. Article Title
• Neutral Sentiment: Coverage over the past day also highlighted Carnival as a leader among leisure stocks and noted renewed investor interest after a strong one-year return. Article Title
• Negative Sentiment: Investors were disappointed by Carnival’s third-quarter EPS guidance of about $1.35, which came in below Wall Street expectations near $1.42, and by a slightly softer full-year outlook. Article Title
• Negative Sentiment: Higher fuel costs and geopolitical disruptions, especially in the Middle East and Mediterranean, are weighing on sentiment and raising concern that strong Q2 results may not fully carry into the second half of 2026. Article Title
• Negative Sentiment: Reports also pointed to pressure from a Texas investigation into Carnival’s April data breach, adding a separate headline risk for the stock. Article Title

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.