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Carnival reported Q1 EPS of 20 cents and $6.17B in revenues, both beating estimates and rising Y/Y.
CCL saw record bookings, double-digit 2026 growth and strong pricing on a constant-currency basis.
Carnival raised its operational outlook by $150M, targeting about $7B EBITDA despite higher fuel costs.
Carnival Corporation & plc (CCL - Free Report) reported better-than-expected first-quarter fiscal 2026 (ended Feb. 28, 2026) results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines also increased on a year-over-year basis.
Carnival delivered a strong start to the year, reporting record first-quarter operating results that exceeded guidance, supported by healthy demand fundamentals and solid execution across its portfolio. The outperformance led management to raise its full-year operational outlook by nearly $150 million, partially offsetting higher fuel costs. The company continues to target solid yield growth, disciplined cost control and approximately $7 billion in adjusted EBITDA.
Looking ahead, Carnival is advancing its next phase of value creation through PROPEL (Powering Growth and Returns, Responsibly), its new long-term framework. The initiative focuses on converting strong demand into higher returns, earnings growth and cash flow while maintaining disciplined capacity expansion and a strong balance sheet.
CCL’s Q1 Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of 20 cents, beating the Zacks Consensus Estimate of 18 cents. In the year-ago quarter, CCL posted an adjusted EPS of 13 cents.
Carnival Corporation Price, Consensus and EPS Surprise
Revenues in the quarter totaled $6.17 billion, beating the consensus mark of $6.11 billion. The metric also increased 6.1% year over year.
During the quarter, passenger ticket revenues amounted to $4.02 billion, up from $3.83 billion reported in the prior-year quarter. Our estimate for passenger ticket revenues was also pegged at $3.95 billion.
Onboard and other revenues increased to $2.14 billion from $1.98 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was pegged at $2.12 billion.
Carnival’s Financials
Adjusted net income in the quarter amounted to $275 million compared with $174 million reported in the prior-year quarter.
Adjusted EBITDA totaled $1.27 billion, up from $1.21 billion reported in the prior-year quarter.
CCL’s Balance Sheet
As of Feb. 28, 2026, cash and cash equivalents were $1.42 billion compared with $1.93 billion as of Nov. 30, 2025. Total debt (current and long-term) as of Feb. 28, 2026, was $25.29 billion compared with $26.64 billion as of Nov. 30, 2025.
Booking Update of Carnival
The company delivered an exceptionally strong start to the year, achieving record booking volumes supported by robust demand extending well into 2028 sailings. Booking activity for 2026 increased by double digits, further strengthening an already record-booked position for the remainder of the year at historically high prices on a constant-currency basis.
With nearly 85% of 2026 capacity already booked and a tighter inventory position compared to the prior year, Carnival is well positioned to drive yield improvement in the back half of the year. Continued demand strength is also reflected in higher first-quarter onboard revenues and a notable acceleration in pre-cruise onboard sales, reinforcing favorable revenue visibility.
Total customer deposits reached a record number of $8 million during the first quarter of fiscal 2026, exceeding the prior year’s high by nearly 10%, reflecting sustained demand strength while underscoring the company’s solid cash flow position.
CCL’s Q2 & FY26 Outlook
For second-quarter fiscal 2026, the company expects adjusted EBITDA to be approximately $1.48 billion. It expects fiscal second-quarter adjusted net income to be nearly $470 million. The company expects fiscal second-quarter adjusted EPS to be 34 cents.
For fiscal 2026, CCL now expects adjusted EBITDA of approximately $7.19 billion, down from its prior estimate of $7.63 billion. Adjusted net income is projected to be nearly $3.1 billion compared with the earlier expectation of $3.5 billion. Accordingly, adjusted EPS for the year is anticipated to be $2.21, revised lower from the previous outlook of $2.48.
The company delivered a trailing four-quarter earnings surprise of 187.5%, on average. APEI stock has moved up 46.8% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 6.3% and 75%, respectively, from the year-ago levels.
Strategic Education, Inc. (STRA - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 19.9%, on average. STRA stock has declined 2.6% in the past six months.
The Zacks Consensus Estimate for Strategic Education’s fiscal 2026 sales and EPS implies growth of 4.1% and 12.8%, respectively, from the year-ago levels.
New Oriental Education & Technology Group, Inc. (EDU - Free Report) currently carries a Zacks Rank of 2 (Buy). The company delivered a trailing four-quarter earnings surprise of 31.8%, on average. EDU stock has climbed 4% in the past six months.
The Zacks Consensus Estimate for EDU’s fiscal 2026 sales and EPS implies growth of 12% and 17.7%, respectively, from the year-ago levels.
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Carnival Q1 Earnings & Revenues Beat Estimates, Increase Y/Y
Key Takeaways
Carnival Corporation & plc (CCL - Free Report) reported better-than-expected first-quarter fiscal 2026 (ended Feb. 28, 2026) results, with both adjusted earnings and revenues surpassing the Zacks Consensus Estimate. The top and bottom lines also increased on a year-over-year basis.
Carnival delivered a strong start to the year, reporting record first-quarter operating results that exceeded guidance, supported by healthy demand fundamentals and solid execution across its portfolio. The outperformance led management to raise its full-year operational outlook by nearly $150 million, partially offsetting higher fuel costs. The company continues to target solid yield growth, disciplined cost control and approximately $7 billion in adjusted EBITDA.
Looking ahead, Carnival is advancing its next phase of value creation through PROPEL (Powering Growth and Returns, Responsibly), its new long-term framework. The initiative focuses on converting strong demand into higher returns, earnings growth and cash flow while maintaining disciplined capacity expansion and a strong balance sheet.
CCL’s Q1 Earnings & Revenues
In the quarter under review, the company reported adjusted earnings per share (EPS) of 20 cents, beating the Zacks Consensus Estimate of 18 cents. In the year-ago quarter, CCL posted an adjusted EPS of 13 cents.
Carnival Corporation Price, Consensus and EPS Surprise
Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote
Revenues in the quarter totaled $6.17 billion, beating the consensus mark of $6.11 billion. The metric also increased 6.1% year over year.
During the quarter, passenger ticket revenues amounted to $4.02 billion, up from $3.83 billion reported in the prior-year quarter. Our estimate for passenger ticket revenues was also pegged at $3.95 billion.
Onboard and other revenues increased to $2.14 billion from $1.98 billion reported in the year-ago quarter. Our estimate for Onboard and other revenues was pegged at $2.12 billion.
Carnival’s Financials
Adjusted net income in the quarter amounted to $275 million compared with $174 million reported in the prior-year quarter.
Adjusted EBITDA totaled $1.27 billion, up from $1.21 billion reported in the prior-year quarter.
CCL’s Balance Sheet
As of Feb. 28, 2026, cash and cash equivalents were $1.42 billion compared with $1.93 billion as of Nov. 30, 2025. Total debt (current and long-term) as of Feb. 28, 2026, was $25.29 billion compared with $26.64 billion as of Nov. 30, 2025.
Booking Update of Carnival
The company delivered an exceptionally strong start to the year, achieving record booking volumes supported by robust demand extending well into 2028 sailings. Booking activity for 2026 increased by double digits, further strengthening an already record-booked position for the remainder of the year at historically high prices on a constant-currency basis.
With nearly 85% of 2026 capacity already booked and a tighter inventory position compared to the prior year, Carnival is well positioned to drive yield improvement in the back half of the year. Continued demand strength is also reflected in higher first-quarter onboard revenues and a notable acceleration in pre-cruise onboard sales, reinforcing favorable revenue visibility.
Total customer deposits reached a record number of $8 million during the first quarter of fiscal 2026, exceeding the prior year’s high by nearly 10%, reflecting sustained demand strength while underscoring the company’s solid cash flow position.
CCL’s Q2 & FY26 Outlook
For second-quarter fiscal 2026, the company expects adjusted EBITDA to be approximately $1.48 billion. It expects fiscal second-quarter adjusted net income to be nearly $470 million. The company expects fiscal second-quarter adjusted EPS to be 34 cents.
For fiscal 2026, CCL now expects adjusted EBITDA of approximately $7.19 billion, down from its prior estimate of $7.63 billion. Adjusted net income is projected to be nearly $3.1 billion compared with the earlier expectation of $3.5 billion. Accordingly, adjusted EPS for the year is anticipated to be $2.21, revised lower from the previous outlook of $2.48.
CCL’s Zacks Rank & Stocks to Consider
Currently, Carnival has a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Zacks Consumer Discretionary sector are as follows:
American Public Education, Inc. (APEI - Free Report) currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.
The company delivered a trailing four-quarter earnings surprise of 187.5%, on average. APEI stock has moved up 46.8% in the past six months. The Zacks Consensus Estimate for APEI’s 2026 sales and EPS indicates an increase of 6.3% and 75%, respectively, from the year-ago levels.
Strategic Education, Inc. (STRA - Free Report) currently sports a Zacks Rank of 1. The company delivered a trailing four-quarter earnings surprise of 19.9%, on average. STRA stock has declined 2.6% in the past six months.
The Zacks Consensus Estimate for Strategic Education’s fiscal 2026 sales and EPS implies growth of 4.1% and 12.8%, respectively, from the year-ago levels.
New Oriental Education & Technology Group, Inc. (EDU - Free Report) currently carries a Zacks Rank of 2 (Buy). The company delivered a trailing four-quarter earnings surprise of 31.8%, on average. EDU stock has climbed 4% in the past six months.
The Zacks Consensus Estimate for EDU’s fiscal 2026 sales and EPS implies growth of 12% and 17.7%, respectively, from the year-ago levels.