Carnival (NYSE:CCL) Announces Quarterly Earnings Results, Beats Expectations By $0.09 EPS

Carnival (NYSE:CCL) released its quarterly earnings results on Friday. The company reported $0.34 EPS for the quarter, topping the consensus estimate of $0.25 by $0.09, Zacks reports. The business had revenue of $6.33 billion during 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 company’s quarterly revenue was up 6.6% on a year-over-year basis. During the same period last year, the business posted $0.14 earnings per share. 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 Trading Up 9.8%

Shares of Carnival stock opened at $31.13 on Friday. The company has a fifty day simple moving average of $27.26 and a 200-day simple moving average of $28.31. Carnival has a 12-month low of $15.07 and a 12-month high of $32.80. The company has a current ratio of 0.34, a quick ratio of 0.30 and a debt-to-equity ratio of 2.10. The stock has a market cap of $36.34 billion, a price-to-earnings ratio of 16.21, a PEG ratio of 0.53 and a beta of 2.53.

Key Stores Impacting Carnival

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

Analyst Upgrades and Downgrades

Several equities analysts have commented on the stock. Weiss Ratings reissued a “hold (c+)” rating on shares of Carnival in a research report on Wednesday, October 8th. Citigroup reduced their price objective on Carnival from $38.00 to $36.00 and set a “buy” rating on the stock in a research note on Friday, December 12th. Melius Research boosted their target price on Carnival from $30.00 to $36.00 and gave the stock a “buy” rating in a research note on Monday, September 15th. Cowen reissued a “buy” rating on shares of Carnival in a research report on Wednesday. Finally, Jefferies Financial Group upped their target price on shares of Carnival from $34.00 to $37.00 and gave the stock a “buy” rating in a research note on Monday. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating and seven have issued a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $34.00.

Hedge Funds Weigh In On Carnival

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

Carnival Company Profile

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.