Carnival (NYSE:CCL – Get Free Report) issued its quarterly earnings results on Tuesday. The company reported $0.41 earnings per share for the quarter, topping analysts’ consensus estimates of $0.34 by $0.07, FiscalAI reports. The company 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 business’s revenue for the quarter was up 5.3% compared to the same quarter last year. During the same period in the prior year, the business posted $0.35 EPS. 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
Shares of CCL stock opened at $28.86 on Thursday. The company has a market capitalization of $35.75 billion, a price-to-earnings ratio of 13.00, a P/E/G ratio of 1.27 and a beta of 2.32. Carnival has a 1-year low of $23.45 and a 1-year high of $34.03. The company has a current ratio of 0.33, a quick ratio of 0.26 and a debt-to-equity ratio of 1.80. The stock’s fifty day simple moving average is $27.37 and its 200-day simple moving average is $28.39.
Carnival Announces Dividend
Carnival News Roundup
Here are the key news stories impacting Carnival this week:
- Positive Sentiment: Carnival reported Q2 adjusted EPS of $0.41, ahead of estimates, with revenue of $6.66 billion and record net yields, showing resilient demand and solid pricing power.
- Positive Sentiment: The company highlighted record customer deposits, continued cost control, and ongoing deleveraging/share repurchases, which support the longer-term investment thesis.
- Neutral Sentiment: Jefferies said Carnival’s reduced fiscal 2026 guidance reflects near-term headwinds rather than a deterioration in the company’s long-term outlook, and it reiterated a Buy rating with a $35 price target. Article Title
- Neutral Sentiment: UBS warned that Carnival is unlikely to benefit much from an improvement in booking trends in 2026, suggesting limited near-term upside if demand stabilizes but does not accelerate sharply. Article Title
- Negative Sentiment: Management’s Q3 and full-year EPS guidance came in below Wall Street expectations, and the company cited geopolitical disruption in Europe/Mediterranean booking trends plus higher fuel costs as pressure points.
- Negative Sentiment: Several reports noted that investors sold the stock because the soft outlook overshadowed the earnings beat, indicating concern that strong current-quarter performance may not translate into faster earnings growth later this year.
Insider Activity at Carnival
In other Carnival news, Director Sir Jonathon Band sold 11,988 shares of the company’s stock in a transaction that occurred on Wednesday, April 1st. The shares were sold at an average price of $26.19, for a total value of $313,965.72. Following the transaction, the director owned 52,601 shares in the company, valued at approximately $1,377,620.19. This represents a 18.56% decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through the SEC website. Also, insider Bettina Alejandra Deynes sold 43,058 shares of the stock in a transaction that occurred 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 of the company’s stock, valued at approximately $1,945,587.80. The trade was a 38.34% decrease in their position. The SEC filing for this sale provides additional information. In the last quarter, insiders sold 55,058 shares of company stock worth $1,524,195. Company insiders own 7.90% of the company’s stock.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently bought and sold shares of the company. Compound Planning Inc. increased its position in Carnival by 3.2% in the 4th quarter. Compound Planning Inc. now owns 24,680 shares of the company’s stock worth $754,000 after purchasing an additional 766 shares during the last quarter. Invesco Ltd. lifted its stake in Carnival by 27.5% in the fourth quarter. Invesco Ltd. now owns 13,922,516 shares of the company’s stock valued at $425,194,000 after acquiring an additional 3,005,752 shares during the last quarter. Corient Private Wealth LLC grew its position in Carnival by 219.2% in the fourth quarter. Corient Private Wealth LLC now owns 713,436 shares of the company’s stock worth $21,788,000 after acquiring an additional 489,959 shares in the last quarter. Beacon Pointe Advisors LLC increased its stake in shares of Carnival by 39.2% during the 4th quarter. Beacon Pointe Advisors LLC now owns 22,097 shares of the company’s stock worth $675,000 after purchasing an additional 6,223 shares during the last quarter. Finally, State of Tennessee Department of Treasury raised its holdings in shares of Carnival by 4.5% during the 4th quarter. State of Tennessee Department of Treasury now owns 412,904 shares of the company’s stock valued at $12,395,000 after purchasing an additional 17,880 shares in the last quarter. Hedge funds and other institutional investors own 67.19% of the company’s stock.
Analyst Ratings Changes
CCL has been the subject of several research reports. Stifel Nicolaus raised their price objective on shares of Carnival from $35.00 to $36.00 and gave the company a “buy” rating in a research report on Friday, June 12th. HSBC upgraded Carnival from a “hold” rating to a “buy” rating and cut their price objective for the company from $33.60 to $30.10 in a research report on Monday, March 30th. Barclays decreased their target price on Carnival from $36.00 to $35.00 and set an “overweight” rating on the stock in a report on Wednesday. Zacks Research raised Carnival from a “strong sell” rating to a “hold” rating in a research report on Friday, May 15th. Finally, Sanford C. Bernstein downgraded Carnival from a “market perform” rating to a “market perform” rating in a report on Tuesday. One equities research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and five have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Carnival has a consensus rating of “Moderate Buy” and an average price target of $35.04.
Read Our Latest Stock Analysis on CCL
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.
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