Carnival Corporation — Q3 2026 Earnings Summary

Financial Performance

• Reported all-time high net income of $1.9 billion and adjusted net income of $2.0 billion for the third quarter of 2026.
• Diluted EPS was $1.40; adjusted diluted EPS was $1.43, remaining flat year-over-year despite a $131 million unfavorable net impact from fuel prices and currency rates.
• Adjusted EBITDA reached $3.0 billion, matching last year's historic high and exceeding June guidance by $110 million.
• Total revenues for the quarter were $8.435 billion, up from $8.153 billion in the prior year period.
• Gross margin yields decreased 1.3% year-over-year due to higher fuel prices, while all-time high net yields (in constant currency) increased 2.4%, surpassing June guidance by over one percentage point.
• Cruise costs per available lower berth day (ALBD) increased 4.2% year-over-year, driven by fuel; adjusted cruise costs excluding fuel per ALBD (in constant currency) increased 1.8%, one point better than June guidance.
• Fuel consumption per ALBD improved 3.8% compared to the prior year.
• Cash from operations for the quarter was $1.410 billion, compared to $1.383 billion in the prior year.
• Capital expenditures for the quarter were $698 million.
• Total debt decreased to $23.912 billion as of August 31, 2026, from $26.640 billion as of November 30, 2025.
• Customer deposits reached a record $7.6 billion for the quarter, up nearly 7% year-over-year.

Guidance and Future Outlook

• Full-year 2026 operational improvement in adjusted net income is expected to exceed $150 million compared to June guidance, overcoming a $150 million impact from increased fuel prices.
• Full-year 2026 net yields (in constant currency) are expected to increase approximately 2.3% compared to record 2025 levels, 0.5 percentage points better than June guidance.
• Full-year 2026 adjusted cruise costs excluding fuel per ALBD (in constant currency) are expected to increase approximately 2.2%, better than June guidance.
• Fourth quarter 2026 net yields (in constant currency) are expected to increase approximately 1.7% compared to 2025 record levels.
• 2027 booked occupancy and pricing are at record levels, providing a strong foundation for yield growth.
• 2028 bookings are off to an excellent start with higher occupancy and prices than the prior year.
• Fourth quarter 2026 newbuild capital expenditures are projected at $0.3 billion, with non-newbuild capital expenditures at $0.9 billion.

Business Segments and Product Lines

• Carnival Cruise Line launched the new Carnival Rewards loyalty program on September 1, 2026, with co-branded credit card issuances increasing over 300% in the weeks following the launch.
• Carnival Cruise Line unveiled "Carnival Destiny," the first ship in its next-generation Ace class, arriving in 2029.
• Holland America Line announced the "Zuiderdam" as the second ship set for major transformation under its Evolution program.
• Princess Cruises launched a native app in ChatGPT, enabling travelers to discover and plan cruises using real-time pricing and availability.
• Celebration Key welcomed almost 2.5 million guests during its first year of operation.
• RelaxAway, Half Moon Cay, and Isla Tropicale each welcomed more than 250,000 guests following recent enhancements.

Market and Competitive Landscape

• Booking volumes are meaningfully ahead of last year and far outpacing capacity growth, indicating strong demand generation.
• The company is the largest global cruise company and among the largest leisure travel companies, with a portfolio including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn.
• S&P upgraded the company's credit rating to investment grade, making it the second rating agency to do so.
• The company has no remaining secured debt following the upgrade.

Risks and Challenges

• Geopolitical uncertainty, war, pandemics, inflation, and higher interest rates could decline demand and negatively impact financial condition.
• Incidents concerning ships, guests, or the industry may cause reputational damage.
• Adverse weather conditions could materially impact business and results.
• Increases in fuel costs and changes in fuel availability may adversely impact itineraries and costs.
• Loss of key team members or inability to recruit/retain qualified staff could adversely affect operations.
• Fluctuations in foreign currency exchange rates may adversely impact financial results.
• Overcapacity and competition in the cruise and land-based vacation industry may negatively impact sales and pricing.
• Cybersecurity incidents and data privacy breaches may lead to fines, penalties, and reputational damage.

Management Commentary and Tone

• CEO Josh Weinstein stated the company delivered "another quarter of top and bottom-line records" with accelerating demand and stronger cost discipline driving results ahead of expectations.
• Weinstein highlighted the "underlying trajectory of our business" and the "consistency of our commercial execution" evidenced by sustained high-quality same-ship yield growth.
• CFO David Bernstein noted that strong operating cash flow enabled the strengthening of the financial position and advancing commitments to return value to shareholders.
• Management expressed confidence in the durability of demand and the earnings power of the business based on the strength of the record booking curve.

Other Key Points

• Completed approximately $1.2 billion of share repurchases year-to-date, including nearly $800 million since the beginning of the third quarter.
• Distributed $204 million in dividends during the quarter, bringing the year-to-date total to $618 million.
• Used cash on hand to opportunistically redeem $500 million of seven percent coupon notes.
• Named to TIME's World's Best Companies 2026 and America's Best Companies 2026.
• Named to Forbes America's Best Employers for Women for 2026.
• Released its 16th annual sustainability report, "Doing Business Responsibly from Ship to Shore."
• The company is included in the S&P 500.