Back to top

Image: Bigstock

Carnival's Q3 Bookings Reach New Highs: Is CCL Stock a Buy?

Read MoreHide Full Article

Key Takeaways

  • Carnival posted record fiscal Q3 bookings, with nearly half of 2026 sailings already sold at higher prices.
  • Customer deposits hit a record $7.1B, driving higher guidance for 2025 amid strong global demand.
  • The new Celebration Key destination boosts pricing power and enhances Carnival's brand momentum.

Carnival Corporation & plc (CCL - Free Report) reported record-breaking booking volumes in the third quarter of fiscal 2025, underscoring strong consumer appetite for cruising and reinforcing its improving pricing power. The company announced that nearly half of its 2026 sailings are already booked, up sharply from last year, with elevated pricing levels, marking the highest forward-booking position in its history.

The momentum wasn’t confined to a single market. Both North American and European brands achieved record-high pricing, reflecting widespread demand strength across Carnival’s portfolio. Management credited this performance to resilient close-in demand, robust onboard spending, and the successful debut of Celebration Key, the company’s new Bahamas destination, which is already commanding a premium on ticket prices.

This acceleration in booking activity comes as the broader travel sector remains on a solid footing, with cruise and leisure travel continuing to outpace pre-pandemic trends. The key question for investors now is: Does Carnival’s record booking strength make CCL stock a buy? Let’s find out.

Record Customer Deposits Signal Confidence

Customer deposits — a key forward indicator of revenue strength — climbed to a record $7.1 billion in the fiscal third quarter, up over $300 million from the prior year. The increase was driven by higher ticket pricing and pre-cruise onboard revenue sales, reflecting strong early commitment from travelers. 

The company emphasized that booking volumes during the quarter exceeded expectations, particularly on close-in demand, allowing the company to raise full-year guidance for the third time in 2025. The company stated that improving booking trends across brands and geographies are expected to sustain high load factors and yield growth in the coming quarters.

Celebration Key Adds a Premium Boost

The July opening of Celebration Key — Carnival’s flagship Bahamas destination — has already begun contributing to booking strength. The management confirmed that itineraries including Celebration Key are commanding a premium on ticket pricing, while early guest feedback has been overwhelmingly positive. The destination’s strong debut, generating over 1.5 billion media impressions, has elevated consumer interest and aided brand differentiation.

Looking ahead, the company expects 2.8 million guests to visit Celebration Key in 2026, with 20 Carnival ships sailing from 12 home ports. This, along with the upcoming pier expansion at Half Moon Cay, will likely drive incremental pricing opportunities and strengthen forward visibility.

2026 Outlook: Pricing Power Meets Limited Supply

Carnival heads into 2026 with one of the most attractive financial setups in its recent history, record forward bookings, accelerating pricing, and constrained capacity growth. Management highlighted that booking momentum has already carried into 2027, marking the strongest early reservation pace on record.

Supported by sustained onboard spend, rigorous cost discipline, and expanding destination-driven demand, Carnival is well-positioned to deliver continued margin expansion and solid free cash flow generation. The company’s improving fundamentals are further reinforced by ongoing balance sheet deleveraging, with net leverage expected to decline toward 3.5x EBITDA, paving the way for a potential resumption of shareholder returns through dividends and buybacks.

Earnings Estimates for CCL Move Upward

Over the past 60 days, the Zacks Consensus Estimate for Carnival’s fiscal 2026 EPS has been revised upward, increasing from $2.28 to $2.35. 

CCL Earnings Estimate Trend

Zacks Investment Research
Image Source: Zacks Investment Research

The 60-day earnings estimate growth trend for industry players, including Royal Caribbean Cruises Ltd. (RCL - Free Report) , Norwegian Cruise Line Holdings Ltd. (NCLH - Free Report) and OneSpaWorld Holdings Limited (OSW - Free Report) , stands at 0%, 6.5% and 0%, respectively.

Carnival’s Price Performance & Valuation Insights

In the past six months, CCL stock has gained 46.4%, outperforming the Zacks Leisure and Recreation Services industry’s return of 22.1% and the S&P 500 Index growth of 25.3%. Meanwhile, industry peers, such as Royal Caribbean, Norwegian Cruise and OneSpaWorld have gained 50.3%, 30% and 20.2%, respectively, over the same time frame.

CCL’s 6-Month Price Performance

Zacks Investment Research
Image Source: Zacks Investment Research

Carnival stock is currently trading at a discount. CCL is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 12.43, well below the industry average of 17.80, reflecting an attractive investment opportunity. Other industry players, such as Royal Caribbean, Norwegian Cruise and OneSpaWorld, have P/E ratios of 17.86, 9.59 and 18.91, respectively.

Zacks Investment Research
Image Source: Zacks Investment Research

How to Play CCL Stock Now

While Carnival’s recent rally reflects mounting investor confidence, its underlying fundamentals indicate there’s more room to run. Record forward bookings, robust onboard spending, and strategic destination investments are driving meaningful pricing power and visibility into 2026 and beyond. Combined with expanding margins, upgraded guidance, and a clear deleveraging path, the company’s growth trajectory remains strong.

CCL stock continues to trade below its intrinsic value despite upward earnings revisions and accelerating demand momentum. With analysts projecting continued profitability gains and management delivering ahead of expectations, the setup remains favorable for further appreciation.

Investors seeking to participate in this momentum may consider buying CCL stock now. The alignment of strong fundamentals, disciplined execution, and a discounted valuation makes this Zacks Rank #1 (Strong Buy) stock a timely opportunity.

You can see the complete list of today’s Zacks #1 Rank stocks here.

Published in