Carnival (NYSE:CCL) Posts Earnings Results, Beats Estimates By $0.08 EPS

Carnival (NYSE:CCL) released its quarterly earnings data on Tuesday. The company reported $1.43 EPS for the quarter, topping analysts’ consensus estimates of $1.35 by $0.08, FiscalAI reports. The company had revenue of $8.44 billion during the quarter, compared to the consensus estimate of $8.39 billion. Carnival had a net margin of 11.37% and a return on equity of 24.83%. The firm’s revenue for the quarter was up 3.5% compared to the same quarter last year. During the same period last year, the firm earned $1.43 EPS. Carnival updated its Q4 2026 guidance to 0.200-0.200 EPS and its FY 2026 guidance to 2.240-2.240 EPS.

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

• Positive Sentiment: Carnival reported record third-quarter revenue, yields, and net income, with adjusted net income exceeding guidance by more than $100 million. Yield growth was nearly 2.5%, while cost discipline and a nearly 4% year-over-year reduction in fuel consumption also supported results.
• Positive Sentiment: Demand trends strengthened, with 2027 already about half booked at record occupancy and pricing levels and customer deposits reaching a third-quarter record of approximately $7.6 billion. Management also said 2028 bookings are starting at higher occupancy and prices year over year.
• Positive Sentiment: Carnival highlighted growth opportunities from its destination portfolio, particularly Celebration Key, which is expected to welcome approximately 3.5 million guests next year as more ships and brands begin calling there. The company is also increasing exposure to Northern Europe, which will tie the Caribbean as its largest deployment region in 2027.
• Positive Sentiment: The company raised full-year 2026 EPS guidance to $2.24 and continues to improve its balance sheet, with total debt below $24 billion, a new investment-grade rating, and nearly $1.2 billion of share repurchases completed. Carnival expects to return nearly $2 billion to shareholders through buybacks and dividends.
• Negative Sentiment: Management expects residual booking disruption to weigh on the first quarter of 2027, while the new Carnival Rewards program will create accounting-related yield headwinds through 2027 before turning positive in 2028. Higher fuel prices remain a risk, although the company does not plan to hedge and instead is relying on further reductions in fuel consumption.

Carnival Stock Performance

Shares of NYSE:CCL opened at $24.60 on Thursday. Carnival has a twelve month low of $21.45 and a twelve month high of $34.03. The firm has a market cap of $33.69 billion, a PE ratio of 10.74, a price-to-earnings-growth ratio of 1.18 and a beta of 2.31. The company has a debt-to-equity ratio of 1.54, a quick ratio of 0.29 and a current ratio of 0.27. The business has a fifty day moving average of $25.24 and a 200-day moving average of $26.32.

Carnival Announces Dividend

The firm also recently announced a quarterly dividend, which was paid on Friday, August 28th. Stockholders of record on Friday, August 7th were paid a $0.15 dividend. The ex-dividend date was Friday, August 7th. This represents a $0.60 dividend on an annualized basis and a dividend yield of 2.4%. Carnival’s dividend payout ratio (DPR) is 27.03%.

Wall Street Analysts Forecast Growth

A number of equities analysts have recently issued reports on the company. Mizuho dropped their target price on Carnival from $39.00 to $38.00 and set an “outperform” rating for the company in a report on Wednesday. Morgan Stanley increased their price objective on Carnival from $31.00 to $32.50 and gave the stock an “overweight” rating in a research note on Tuesday. BMO Capital Markets started coverage on Carnival in a report on Tuesday, July 7th. They set a “market perform” rating and a $30.00 price objective for the company. Freedom Capital raised Carnival to a “strong-buy” rating in a report on Wednesday, June 3rd. Finally, The Goldman Sachs Group lowered their target price on shares of Carnival from $35.00 to $30.00 and set a “buy” rating on the stock in a report on Thursday, September 17th. One research analyst has rated the stock with a Strong Buy rating, twenty have assigned a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and a consensus price target of $34.36.

Key Headlines Impacting Carnival

Here are the key news stories impacting Carnival this week:

• Positive Sentiment: Record Q3 results and resilient demand support the long-term outlook. Carnival reported adjusted EPS of $1.43 and revenue of $8.44 billion, exceeding analyst estimates of $1.35 and $8.39 billion. Net income reached approximately $1.9 billion, while net yields and revenue were records. Carnival Corporation Q3 results
• Positive Sentiment: Bookings provide visibility into 2027. About half of Carnival’s 2027 inventory is booked at record occupancy and pricing, and customer deposits reached $7.6 billion. The company is limiting capacity growth to roughly 0.5%, which could help preserve pricing power and net yields. CCL Q3 earnings call highlights
• Positive Sentiment: Full-year guidance was raised. Carnival now expects fiscal 2026 adjusted EPS of approximately $2.24, above the roughly $2.22 consensus estimate. Analysts remain broadly constructive, with Mizuho retaining an Outperform rating and a $38 price target despite a modest reduction. Carnival average price target
• Neutral Sentiment: Options activity points to continued bullish speculation. Traders purchased more than 100,000 Carnival call options, approximately double the average daily volume, indicating elevated interest in further upside but also potentially increasing short-term volatility. Carnival call options activity
• Negative Sentiment: Near-term guidance and costs are weighing on sentiment. Carnival’s fourth-quarter EPS forecast of $0.20 is below the approximately $0.25 analyst consensus. Fuel costs rose sharply, pressuring margins, and several analysts lowered price targets after the earnings report. The stock may also be experiencing profit-taking following its large earnings-driven advance. Analysts cut Carnival forecasts

Carnival Company Profile

Carnival Corporation & plc (NYSE: CCL) is a global leisure travel company that operates cruise lines and related vacation businesses. Its brands offer ocean cruises, onboard entertainment, dining, accommodation, excursions and other travel experiences to passengers across a range of price points and destinations.

The company’s portfolio includes Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Cunard, P&O Cruises, P&O Cruises Australia, AIDA Cruises and Costa Cruises.