10-Q · June 26, 2026
Carnival Corporation reported strong Q2 2026 results with revenues of $6.66 billion and EPS of $0.41, exceeding expectations despite a slight revenue miss against estimates. The North America and Europe segments showed…
Earnings analysis · 10-Q
CCL earnings analysis
Filed September 29, 2026 · Our reading of the company's report
The latest report
Carnival delivered a strong third quarter, with $8.435 billion of revenue and $1.40 diluted EPS, exceeding consensus and improving materially from both Q2 2026 and Q3 2025. Demand indicators were particularly positive,…
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Carnival delivered a strong third quarter, with $8.435 billion of revenue and $1.40 diluted EPS, exceeding consensus and improving materially from both Q2 2026 and Q3 2025. Demand indicators were particularly positive, including record $7.6 billion customer deposits and record 2027 booked occupancy and pricing. Management raised full-year adjusted net income expectations to approximately $3.08 billion, although fuel costs, expected 2.2% cruise-cost inflation, and the $23.912 billion debt balance remain significant risks. The 10-Q reported no material changes to the risk factors from the 2025 Form 10-K.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $1.4
What stood out
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Revenue and EPS exceeded estimates
Third-quarter revenue was $8.435 billion versus consensus of $8.391 billion, while diluted EPS was $1.40 versus the $1.35 estimate. Revenue increased from $6.66 billion in Q2 2026 and $8.15 billion in Q3 2025.
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Earnings momentum strengthened
Diluted EPS of $1.40 rose from $0.39 in Q2 2026 and $1.33 in Q3 2025, indicating strong sequential and year-over-year earnings growth.
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Record customer deposits
Customer deposits reached a record $7.6 billion, supporting management’s assessment of continued demand strength and future booking visibility.
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Record 2027 bookings and pricing
Management reported record booked occupancy and pricing for 2027, a positive forward demand indicator supporting the approximately 2.3% full-year constant-currency net-yield growth outlook.
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Full-year outlook raised
Full-year 2026 adjusted net income outlook increased by more than $150 million versus June guidance to approximately $3.08 billion, despite a stated $150 million fuel-price impact.
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Share repurchases continued
The company repurchased 20.3 million shares during the quarter at an average price of $27.03, leaving $1.562 billion available under the $2.5 billion authorization.
What to watch
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Significant debt burden
Carnival reported $23.912 billion of debt, leaving leverage and interest expense material risks despite improving earnings. The debt mix included 52% fixed-rate debt and 5% floating-rate debt as of August 31, 2026.
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Fuel and cost inflation pressure
Management cited a $150 million fuel-price impact to the full-year 2026 outlook, while adjusted cruise costs excluding fuel per ALBD are expected to increase approximately 2.2%.
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No new risk-factor relief
The filing states that there have been no material changes to the risk factors since the Form 10-K. Market-risk exposure remains relevant, with 10% of debt classified as EUR floating rate as of August 31, 2026.
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Capital allocation versus deleveraging
The company repurchased 20.3 million shares during the quarter and had $1.562 billion remaining under the authorization, which could compete with debt reduction or liquidity preservation while debt stood at $23.912 billion.
Management's outlook
Management raised full-year 2026 adjusted net income outlook by more than $150 million versus June guidance, to approximately $3.08 billion. Constant-currency net-yield growth outlook improved to approximately 2.3%; adjusted cruise costs excluding fuel per ALBD are expected to increase approximately 2.2%.
Earlier filings 4
10-Q · March 27, 2026
Carnival reported Q1 revenue of $6,165 million, up from $5,810 million a year earlier, with operating income rising to $607 million and diluted EPS of $0.19. Operating cash flow strengthened to $1,263 million and free…
10-K · January 27, 2026
Carnival’s 10-K emphasizes a return-to-strength: passenger volumes rose to 13,627 thousand in 2025 (from 13,509 thousand in 2024) and onboard/other revenues comprised 34% of cruise revenues in 2025. The company…
10-Q · June 26, 2025
Carnival reported a strong quarter with revenue of $6,328 million and diluted EPS of $0.42 for the three months ended May 31, 2025, materially higher than the prior-year quarter. Operating income improved to $934…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.