CARNIVAL CORPORATION OUTPERFORMS GUIDANCE, DELIVERING BEST EVER REVENUES, NET YIELDS AND NET INCOME Record bookings provide a strong foundation for 2027
Carnival Corp Ltd. (CCL) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 CARNIVAL CORPORATION OUTPERFORMS GUIDANCE, DELIVERING BEST EVER REVENUES, NET YIELDS AND NET INCOME Record bookings provide a strong foundation for 2027 MIAMI (September 29, 2026) - Carnival Corporation (NYSE: CCL) announced financial results for the third quarter 20
How this was made
The 30-second read
Why it matters
The earnings beat and updated guidance provide fresh, material data that can move the stock immediately.
Market read
Earnings beat and updated guidance create a clear short‑term catalyst for CCL and may influence the travel sector.
What to watch
Share repurchases and credit upgrade may offset near‑term cost headwinds.
Carnival Corporation outperforms guidance, delivering best ever revenues, net yields and net income
Third-quarter revenue, net income attributable to Carnival Corporation Ltd., customer deposits and constant-currency net yields reached records. Adjusted EBITDA was $110 million better than June guidance, while full-year adjusted net income is expected to improve by more than $150 million versus June guidance despite increased fuel prices.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended August 31, 2026GAAP | $8.44B | – | – |
| Passenger ticket revenue, three months ended August 31, 2026GAAP | $5.53B | – | – |
| Onboard and other revenue, three months ended August 31, 2026GAAP | $2.91B | – | – |
| Total cruise and tour operating expenses, three months ended August 31, 2026GAAP | $4.63B | – | – |
| Selling and administrative expense, three months ended August 31, 2026GAAP | $834M | – | – |
| Depreciation and amortization expense, three months ended August 31, 2026GAAP | $754M | – | – |
| Operating income, three months ended August 31, 2026GAAP | $2.22B | – | – |
| Interest expense, net of capitalized interest, three months ended August 31, 2026GAAP | −$285M | – | – |
| Income before income taxes, three months ended August 31, 2026GAAP | $1.94B | – | – |
| Income tax expense, net, three months ended August 31, 2026GAAP | −$16M | – | – |
| Net income, three months ended August 31, 2026GAAP | $1.92B | – | – |
| Net income attributable to Carnival Corporation Ltd., three months ended August 31, 2026GAAP | $1.92B | – | – |
| Diluted earnings per share, three months ended August 31, 2026GAAP | $ 1.40 | – | – |
| Adjusted net income, three months ended August 31, 2026non-GAAP | $1.96B | – | – |
| Adjusted EBITDA, three months ended August 31, 2026non-GAAP | $2.99B | – | in line with last year’s historic high |
| Adjusted earnings per share - diluted, three months ended August 31, 2026non-GAAP | $ 1.43 | – | in line with prior year |
| Gross margin, three months ended August 31, 2026GAAP | $3.05B | – | – |
| Gross margin yields, three months ended August 31, 2026other | $122.5M | – | down 1.3 percent compared to prior year |
| Net yields, three months ended August 31, 2026non-GAAP | $255.0M | – | up 2.4 percent |
| Net yields, three months ended August 31, 2026, constant currencynon-GAAP | $255.1M | – | up 2.4 percent |
| Cruise costs per ALBD, three months ended August 31, 2026other | $ 214.81 | – | increased 4.2 percent compared to prior year |
| Adjusted cruise costs excluding fuel per ALBD, three months ended August 31, 2026non-GAAP | $ 113.81 | – | increased 1.8 percent |
| Adjusted cruise costs excluding fuel per ALBD, three months ended August 31, 2026, constant currencynon-GAAP | $ 113.98 | – | increased 1.8 percent |
| Fuel consumption per thousand ALBDs, three months ended August 31, 2026other | 26.9 | – | improved 3.8 percent compared to prior year |
| Cash from operations, three months ended August 31, 2026GAAP | $1.41B | – | – |
| Capital expenditures, three months ended August 31, 2026GAAP | $698M | – | – |
| Total revenues, nine months ended August 31, 2026GAAP | $21.26B | – | – |
| Operating income, nine months ended August 31, 2026GAAP | $3.68B | – | – |
| Net income attributable to Carnival Corporation Ltd., nine months ended August 31, 2026GAAP | $2.71B | – | – |
| Diluted earnings per share, nine months ended August 31, 2026GAAP | $ 1.96 | – | – |
| Adjusted net income, nine months ended August 31, 2026non-GAAP | $2.81B | – | – |
| Adjusted EBITDA, nine months ended August 31, 2026non-GAAP | $5.84B | – | – |
| Adjusted earnings per share - diluted, nine months ended August 31, 2026non-GAAP | $ 2.03 | – | – |
| Cash from operations, nine months ended August 31, 2026GAAP | $5.30B | – | – |
| Capital expenditures, nine months ended August 31, 2026GAAP | $2.14B | – | – |
| Cash and cash equivalents, August 31, 2026GAAP | $1.22B | – | – |
| Debt (current and long-term), August 31, 2026other | $23.91B | – | – |
| Customer deposits (current and long-term), August 31, 2026other | $7.64B | – | – |
| Customer deposits, third quarter 2026other | $7.6B | – | up nearly seven percent compared to the prior year record |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Passenger ticket revenue, three months ended August 31, 2026Not specified. | $5.53B | – | – |
| Onboard and other revenue, three months ended August 31, 2026Not specified. | $2.91B | – | – |
| Passenger ticket revenue, nine months ended August 31, 2026Not specified. | $13.82B | – | – |
| Onboard and other revenue, nine months ended August 31, 2026Not specified. | $7.44B | – | – |
4Q 2026 and Full Year 2026 outlook
- Note4Q 2026 net yields: Approx. 2.3% year over year change in current dollars; Approx. 1.7% in constant currency.
- NoteFull Year 2026 net yields: Approx. 3.8% year over year change in current dollars; Approx. 2.3% in constant currency.
- Note4Q 2026 adjusted cruise costs excluding fuel per ALBD: Approx. 1.9% year over year change in current dollars; Approx. 1.7% in constant currency.
- NoteFull Year 2026 adjusted cruise costs excluding fuel per ALBD: Approx. 3.5% year over year change in current dollars; Approx. 2.2% in constant currency.
- Note4Q 2026 ALBDs (in millions): 24.1.
- NoteFull Year 2026 ALBDs (in millions): 97.4.
- Note4Q 2026 capacity growth compared to prior year: (0.1) %.
- NoteFull Year 2026 capacity growth compared to prior year: 1.0 %.
- Note4Q 2026 fuel consumption in metric tons (in millions): 0.7.
- NoteFull Year 2026 fuel consumption in metric tons (in millions): 2.7.
- Note4Q 2026 fuel cost per metric ton consumed (excluding emission allowances): $ 896.
- NoteFull Year 2026 fuel cost per metric ton consumed (excluding emission allowances): $ 768.
- Note4Q 2026 fuel expense (including emission allowances expense) (in billions): $ 0.64.
- NoteFull Year 2026 fuel expense (including emission allowances expense) (in billions): $ 2.25.
- Note4Q 2026 depreciation and amortization expense (in billions): $ 0.75.
- NoteFull Year 2026 depreciation and amortization expense (in billions): $ 2.92.
- Note4Q 2026 interest expense, net of capitalized interest and interest income (in billions): $ 0.26.
- NoteFull Year 2026 interest expense, net of capitalized interest and interest income (in billions): $ 1.08.
- Note4Q 2026 adjusted EBITDA (in billions): Approx. $1.30.
- NoteFull Year 2026 adjusted EBITDA (in billions): Approx. $7.14.
- Note4Q 2026 adjusted net income (in millions): Approx. $274.
- NoteFull Year 2026 adjusted net income (in millions): Approx. $3,080.
- Note4Q 2026 adjusted earnings per share - diluted: Approx. $0.20.
- NoteFull Year 2026 adjusted earnings per share - diluted: Approx. $2.24.
- Note4Q 2026 weighted-average shares outstanding - basic: 1,352.
- NoteFull Year 2026 weighted-average shares outstanding - basic: 1,369.
- Note4Q 2026 adjusted weighted-average shares outstanding - diluted: 1,358.
- NoteFull Year 2026 adjusted weighted-average shares outstanding - diluted: 1,376.
- NoteFourth-quarter 2026 newbuild capital expenditures: $0.3 billion.
- NoteFourth-quarter 2026 non-newbuild capital expenditures: $0.9 billion.
Capital returns
- Completed approximately $1.2 billion of share repurchases year to date.
- Nearly $800 million of share repurchases occurred since the beginning of the third quarter.
- Distributed $204 million in dividends during the quarter.
- Distributed $618 million in dividends year to date.
- Used cash on hand to redeem $500 million of seven percent coupon notes during the third quarter.
What drove it
- All-time high revenues and net yields in constant currency reflected continued demand strength.
- Booking volumes were meaningfully ahead of last year and far outpaced capacity growth.
- Full-year 2027 booked occupancy and pricing in constant currency were at record levels.
- Third-quarter customer deposits reached a record of $7.6 billion, surpassing the prior-year record by $0.5 billion despite flat capacity growth over the next twelve months.
- Fuel consumption per ALBD improved 3.8 percent compared to the prior year.
- Adjusted cruise costs excluding fuel per ALBD in constant currency increased 1.8 percent, one point better than June guidance.
Concerns
- Gross margin yields declined 1.3 percent compared with the prior year, driven by higher fuel prices.
- Cruise costs per ALBD increased 4.2 percent compared with the prior year, driven by higher fuel prices.
- Fuel prices and currency rates had a $0.10 ($131 million) unfavorable net impact on third-quarter diluted EPS.
- The full-year outlook incorporates a $150 million impact from increased fuel prices.
- The full-year adjusted cruise costs excluding fuel per ALBD outlook reflects the timing of certain expenses between years, partial-year operating expenses from two exclusive destinations and elevated logistics costs resulting from disruption from the Middle East conflict.
What to watch
- Fourth-quarter 2026 net yields are expected to increase approximately 1.7 percent in constant currency compared to 2025 record levels.
- Full-year 2026 adjusted net income is expected to show operational improvement of more than $150 million compared with June guidance.
- Fourth-quarter 2026 adjusted EBITDA is expected to be Approx. $1.30 billion and adjusted diluted EPS is expected to be Approx. $0.20.
- The company expects year-over-year improvement in its balance sheet and leverage metrics despite capital returned to shareholders.
- Record 2027 booked occupancy and pricing and the early 2028 booking curve are leading indicators of future yield performance.
Balance sheet and cash flow
- Cash and cash equivalents were $ 1,220 million at August 31, 2026, compared with $ 1,928 million at November 30, 2025.
- Debt (current and long-term) was $ 23,912 million at August 31, 2026, compared with $ 26,640 million at November 30, 2025.
- Customer deposits (current and long-term) were $ 7,639 million at August 31, 2026, compared with $ 7,246 million at November 30, 2025.
- Cash from operations was $ 1,410 million for the three months ended August 31, 2026 and $ 5,303 million for the nine months ended August 31, 2026.
- Capital expenditures were $ 698 million for the three months ended August 31, 2026 and $ 2,139 million for the nine months ended August 31, 2026.
- During the quarter, S&P upgraded the company's credit rating, making it the second rating agency to award the company an investment grade rating.
- Following the upgrade, the company did not have any remaining secured debt.
Analysis
Carnival reported record third-quarter revenue of $ 8,435 million and net income attributable to Carnival Corporation Ltd. of $ 1,920 million. Adjusted EBITDA was $ 2,993 million, matching the prior-year amount, while adjusted diluted EPS was $ 1.43, also matching the prior year. The company characterized the revenue and constant-currency net-yield results as all-time highs, with net yields up 2.4 percent in constant currency.
Demand indicators remained strong. Booking volumes were meaningfully ahead of last year and outpaced capacity growth, while customer deposits reached a third-quarter record of $7.6 billion. Management said full-year 2027 booked occupancy and pricing were at record levels, and 2028 began at higher occupancy and prices than last year. Third-quarter ALBDs were 24.9 million against 24.6 million a year earlier, while occupancy was 111.8 % against 111.7 %.
Fuel was the principal offset to operating performance. Gross margin yields declined 1.3 percent year over year and cruise costs per ALBD increased 4.2 percent, both driven by higher fuel prices. Fuel prices and currency rates created a $0.10 ($131 million) unfavorable net impact on diluted EPS. Against that pressure, adjusted cruise costs excluding fuel per ALBD in constant currency increased 1.8 percent, one point better than June guidance, and fuel consumption per ALBD improved 3.8 percent.
Cash generation supported both debt reduction and shareholder distributions. Cash from operations was $ 1,410 million in the quarter and $ 5,303 million for the nine months. The company completed approximately $1.2 billion of year-to-date share repurchases, paid $204 million in quarterly dividends, and redeemed $500 million of seven percent coupon notes. Debt was $ 23,912 million at August 31, 2026, compared with $ 26,640 million at November 30, 2025.
The full-year outlook calls for operational improvement of more than $150 million in adjusted net income versus June guidance despite a $150 million impact from increased fuel prices. Full-year constant-currency net yields are expected to rise approximately 2.3 percent and adjusted cruise costs excluding fuel per ALBD are expected to rise approximately 2.2 percent. For the fourth quarter, the company guides to approximately 1.7 percent constant-currency net-yield growth, Approx. $1.30 billion of adjusted EBITDA and Approx. $0.20 of adjusted diluted EPS.
Management, verbatim
We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations. This performance reinforces the underlying trajectory of our business and the consistency of our commercial execution, as evidenced by our sustained track record of high-quality same-ship yield growth.
Josh Weinstein, Chief Executive Officer
For full-year 2027, both booked occupancy and pricing 3 are at record levels, providing a strong foundation for another year of solid yield growth. Looking further ahead, 2028 is also off to an excellent start at higher occupancy and prices than last year.
Josh Weinstein, Chief Executive Officer
With nearly $1.2 billion of share repurchases so far this year — nearly $800 million since the beginning of the third quarter — and our ongoing dividend program, we are making meaningful progress toward our PROPEL target of distributing cash to our shareholders, responsibly.
David Bernstein, Chief Financial Officer
Not in the filing
stated, not guessed- Previous outlook section was not provided, so no comparison of actual results with prior guidance is available.
- Forward revenue guidance was not provided.
- Forward gross margin guidance was not provided.
- Forward operating-expense guidance was not provided.
- Forward tax-rate guidance was not provided.
- Free cash flow was not reported.
- Quarterly segment reporting by cruise line or geographic segment was not provided.
- Prior-quarter comparative figures for income-statement metrics were not provided.
- Percentage changes were not printed for most financial-statement line items, including total revenues, operating income, net income, and cash from operations.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Carnival Corp filed a Form 8‑K reporting its third‑quarter 2026 financial results and an updated outlook for 2027.
Ticker impact
Carnival Corp reported Q3 2026 results beating guidance with record revenues, net income and updated outlook.
likely upward pressure as market prices in the earnings beat and updated guidance
All‑time high net income, revenue and net yields plus an updated full‑year outlook provide fresh, material information for investors.
Market effects
Positive earnings may lift the broader cruise and travel sector.
U.S. travel stocks could see buying interest.
Improved cruise demand supports global leisure travel outlook.
Counterpoint
Higher fuel costs could pressure margins if price gains stall.
Key entities
- companyCarnival Corp
U.S.-listed cruise operator (NYSE: CCL).
