Carnival Corporation (CCL) Q2 2026: Record Revenues and Earnings Growth — Strongly Positive

Carnival Corporation (NYSE: CCL) reported a remarkable second quarter for 2026, achieving record revenues and adjusted net income. The company generated $6.7 billion in revenue, marking an increase of $1.1 billion or +19% compared to the prior year. Adjusted net income reached $569 million, up over 20% from the previous year, showcasing the company's robust performance amidst challenging market conditions.

This quarter is undoubtedly a positive outcome for shareholders. The significant growth in both revenue and earnings reflects Carnival's ability to navigate geopolitical challenges and rising fuel costs while maintaining strong demand for its cruise offerings. The company’s strategic focus on cost efficiency and operational execution has paid off, resulting in a substantial increase in profitability.

Key Financial Metrics

• Net Income: $537 million
• Adjusted Net Income: $569 million, up over 20% YoY
• Revenue: $6.7 billion, up $1.1 billion or +19% YoY
• Diluted EPS: $0.39
• Adjusted EPS: $0.41, up over 15% YoY
• Adjusted EBITDA: $1.6 billion
• Gross Margin Yields: Down 3.9% due to higher fuel prices
• Record Net Yields: Up 2.2% in constant currency
• Customer Deposits: $9.0 billion, up over $450 million YoY

Shareholder Returns and Guidance

Carnival has accelerated its shareholder returns, repurchasing over $450 million in stock to date and distributing $207 million in dividends during the quarter, bringing the year-to-date total to $414 million. This commitment to returning capital to shareholders is a strong signal of confidence in the company’s financial health.

Looking ahead, Carnival expects net yields to increase by approximately 3.2% for the full year compared to record 2025 levels. Adjusted cruise costs excluding fuel per available lower berth day (ALBD) are projected to rise by about 3.7%. The company is also on track for record net yields in the second half of 2026, with a booked position for the remainder of the year already at 93%, indicating strong demand.

Forward Catalysts

Investors should keep an eye on the upcoming booking trends for 2027 and beyond, as Carnival has reported that demand remains strong, with booking volumes and prices for future sailings running ahead of prior year levels. The company’s ability to maintain pricing integrity and occupancy levels in the face of geopolitical challenges will be crucial for sustaining growth.

In summary, Carnival Corporation's second quarter results reflect a strong operational performance and a positive outlook for the remainder of 2026. The company's strategic initiatives and robust demand for its cruise offerings position it well for continued success, making this quarter a significant win for shareholders.

Note: The following tables present amounts in millions.

	Six Months Ended May 31, 2026	Six Months Ended May 31, 2025
Revenues	$ 8,297	$ 7,973
Operating Expenses	4,755	4,227
Operating Income	3,542	3,746
Interest Expense, net	(389)	(372)
Income before Income Taxes	3,153	3,374
Income Taxes	1,590	1,482
Net Income	$ 1,563	$ 1,892
Earnings Per Share - Basic	$ 0.39	$ 0.43
Earnings Per Share - Diluted	$ 0.38	$ 0.42
Weighted Average Shares Outstanding - Basic	1,388	1,400
Weighted Average Shares Outstanding - Diluted	1,388	1,400

	May 31, 2026	November 30, 2025
Cash and cash equivalents	$ 2,243	$ 1,928
Trade and other receivables, net	633	678
Inventories	552	505
Prepaid expenses and other	1,063	1,108
Total current assets	4,492	4,219
Property and Equipment, Net	43,616	43,494
Operating Lease Right-of-Use	1,260	1,328
Goodwill	579	579
Other Intangibles	1,181	1,177
Other Assets	1,100	890
Total Assets	$ 52,228	$ 51,687
Current portion of long-term debt	$ 1,471	$ 2,603
Current portion of operating lease liabilities	168	175
Accounts payable	1,246	1,245
Accrued liabilities and other	2,092	2,239
Customer deposits	8,457	6,831
Total current liabilities	13,434	13,092
Long-Term Debt	23,418	24,037
Long-Term Operating Lease Liabilities	1,113	1,178
Other Long-Term Liabilities	1,279	1,097
Additional paid-in capital	15,640	17,253
Retained earnings	4,996	4,817
Accumulated other comprehensive income (loss)	-1,741	-1,810
Treasury stock	-5,943	-8,364
Total shareholders’ equity attributable to Carnival Corporation Ltd.	12,968	12,270
Noncontrolling interests	16	14
Total shareholders’ equity	12,984	12,284
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$ 52,228	$ 51,687

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