Key insights
- Carnival Corp. (CCL) reported better-than-expected third-quarter earnings and revenue, alongside a positive outlook for fiscal 2026 with projected net yield growth exceeding consensus. The company also noted record booking occupancy and pricing for 2027. This strong performance led to significant stock price increases for Carnival and its rivals, Royal Caribbean Cruises (RCL) and Norwegian Cruise Line Holdings (NCLH), signaling a potential turnaround for the cruise sector after earlier declines.
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Cruise stocks are surging after results from an industry leader topped Wall Street’s estimates.
Shares of Carnival Corp. (CCL) were up 12% in recent trading, among the biggest gainers in the S&P 500, after the cruise operator posted better-than-expected earnings and issued a rosy outlook.1 Shares of rivals Royal Caribbean Cruises (RCL) and Norwegian Cruise Line Holdings (NCLH) also climbed.
Despite dealing with rising fuel prices, Carnival reported adjusted earnings of $1.43 per share on a 3.5% year-over-year rise in revenue to $8.44 billion for the fiscal third quarter. Analysts polled by Visible Alpha had expected $1.35 per share and $8.35 billion, respectively.
Carnival sees net yields up 3.8% in fiscal 2026, well above the 3.2% consensus, and said booked occupancy and pricing for 2027 are at record levels.
“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,” CEO Josh Weinstein said in a release.
Even with today’s gains, Carnival shares have dropped nearly 20% this year amid worries about macroeconomic headwinds. Norwegian shares have lost a third of their value in 2026, while Royal Caribbean stock has fallen 8%.