EarningsQ3 2026 Earnings Report
MX:CCL1N Q3 2026 EPS Results
Actual EPS$26.33
Consensus EPS$24.93
Beat/MissBeat by +$1.40
One Year Ago EPS$26.33
MX:CCL1N Q3 2026 Revenue Results
Actual Revenue$155.32B
Expected Revenue$154.44B
Beat/MissBeat by +$885.22M
YoY Revenue Growth+3.46%
Earnings Announcement Details
QuarterQ3 2026
Date09/29/2026
TimeBefore Open
Conference CallTuesday, September 29, 2026
MX:CCL1N Upcoming Earnings
Carnival's next earnings date is estimated for December 18, 2026, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:CCL1N Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was strongly positive. Carnival reported record revenues, yields, net income and deposits; raised full-year EPS guidance; delivered better-than-expected cost and fuel-consumption performance; described forward bookings and onboard spending as robust; and highlighted improving returns, capital returns and an investment-grade credit rating. The main challenges were higher fuel prices, residual first-quarter 2027 booking disruption, temporary loyalty-program accounting headwinds, Caribbean capacity pressure and higher expected capital expenditures.Company Guidance
Record Quarterly Financial Results
Third quarter revenues, yields and reported net income all reached new highs, while customer deposits also set a record. Net income exceeded June guidance by more than $100 million, or $0.08 per share.
Yield Growth Outperformed Expectations
Third quarter yields increased nearly 2.5% year-over-year, on top of almost 5% growth in the prior-year third quarter, and were 1.2 percentage points above June guidance due to strong close-in demand and robust onboard spending.
Cost Discipline and Operational Improvement
Cruise costs excluding fuel per ALBD increased only 1.8% year-over-year, 100 basis points better than June guidance. The company said it has improved full-year expectations by more than 1 point despite continued pressure from higher-than-expected inflation.
Fuel Consumption Efficiency Gains
Third quarter fuel consumption declined nearly 4% year-over-year, following a reduction of more than 5% in the prior-year third quarter. Fuel consumption was 3 points better than expected for the quarter, and consumption per ALBD is down 26% since 2019, representing nearly $750 million of savings at September guidance fuel prices.
Higher Full-Year 2026 Guidance
The company expects more than $150 million of net-income operational improvement compared with June guidance, fully offsetting the stated $150 million impact from higher fuel prices. Full-year EPS guidance increased to $2.24, up $0.02 from the previous guidance, with expected yield growth of approximately 2.3%.
Strong Fourth-Quarter Outlook
Fourth-quarter yield growth is expected to be approximately 1.7% year-over-year, more than 0.75 points above implied June guidance. On a normalized basis, fourth-quarter yields are expected to increase approximately 2.3%, consistent with third-quarter year-over-year growth.
Robust Forward Bookings and Deposits
For full-year 2027, the company is already half booked, with occupancy and pricing at record levels; management clarified that both are higher year-over-year. Bookings increased healthily compared with last year's levels, and 2028 started with higher occupancy, higher prices year-over-year and the company's booking curve further out than ever at this point in the year. Third-quarter customer deposits reached approximately $7.6 billion, up about 7% despite flat capacity growth over the next 12 months.
Broad-Based Consumer Demand and Onboard Spending
Booking momentum improved from June and accelerated in July and August. Management said onboard spending accelerated, with no observed slowdown in consumer strength. Third-quarter onboard and other revenue grew 7%, was broad-based across categories and brands on both sides of the Atlantic, and more than 50% of revenue was prebooked.
Celebration Key Growth and Guest Response
Celebration Key welcomed almost 2.5 million guests in its first year, with management describing guest response as exceptional. With its second pier open, the destination is expected to welcome approximately 3.5 million guests next year, with 31 ships calling versus 26 this year. Princess will begin calling next month, followed by select AIDA and Costa calls late next year.
Expansion of Destination Portfolio
Expanded experiences at RelaxAway, Half Moon Cay and Isla Tropicale Roatán have each welcomed approximately 250,000 guests with very positive guest response. Next year, 35% of Carnival Cruise Line's Caribbean capacity will feature itineraries visiting both RelaxAway and Celebration Key.
Loyalty Program and Credit Card Momentum
In the year following Carnival Cruise Line's June 2025 loyalty-program announcement, co-branded credit card issuances increased 20% before the new benefits took effect. Since Carnival Rewards launched on September 1, issuances have accelerated significantly, more than tripling from pre-announcement levels. Thousands of members have already redeemed tens of millions of points.
Selective Fleet Investment and Modernization
Carnival Festivale is scheduled to enter Caribbean service in May and begin contributing to results in the second half of the year. Mid-life modernization programs continue, with additional AIDA and Holland America vessels planned for next year, along with a major upgrade of Cunard's Queen Mary 2.
Deployment Shift Toward Europe and Alaska
The company is increasing its emphasis on Northern European deployments, including cooler-weather destinations, fjords and the Northern Lights. In 2027, Europe will tie the Caribbean as the largest deployment region, with each representing 34% of the mix. Carnival also highlighted its integrated Alaska land-and-sea offering, including thousands of hotel and lodge rooms, 20 glass-domed railcars and the largest motor-coach fleet in Alaska.
Improving Returns and PROPEL Execution
Despite the significant fuel-price headwind, the company expects to finish 2026 with more brands generating mid-teens or higher returns on invested capital than last year. Management said it is beginning to capture opportunities embedded in its PROPEL targets sooner than expected through scale, commercial execution, technology, AI-enabled decision-making, shoreside automation and vessel-management efficiencies.
Capital Returns and Balance-Sheet Improvement
The company has repurchased approximately $1.2 billion of stock, representing 45 million shares, in the first six months of its repurchase program. Including the expected fiscal-year dividend payout, Carnival expects to return nearly $2 billion to shareholders. Total debt is below $24 billion versus a $36 billion peak in 2023, and the company redeemed $500 million of 7% notes during the quarter.
Investment-Grade Credit Profile
S&P upgraded Carnival's credit rating, making it the second rating agency to assign the company an investment-grade rating. Following the upgrade and release of collateral, the company stated that it has no remaining secured debt.
MX:CCL1N Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed