Carnival Beats Q2 with $6.7B Revenue, Guides Lower on EPS Outlook

CCL

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2026-06-23

Carnival reported Q2 adjusted EPS of $0.41, record revenue of $6.7 billion and adjusted net income of $569 million, up over 20% despite nearly 30% higher fuel costs. Q3 EPS guidance of $1.35 and full-year EPS outlook of $2.22 both trail analyst estimates, sending shares down 9%.

1. Q2 Financial Results

Carnival posted adjusted EPS of $0.41, surpassing forecasts by $0.08, and recorded revenue of $6.7 billion. Adjusted net income reached $569 million, a 20% increase year-on-year, despite nearly 30% higher fuel expenses and a $73 million adverse impact from fuel and currency shifts.

2. Guidance and Outlook

For Q3 2026, Carnival forecast adjusted EPS of $1.35, below the $1.42 consensus, and full-year EPS of $2.22 versus $2.23 expected. The lowered guidance drove a 9% share decline as investors weighed potential demand slowdowns and margin pressures from sustained cost headwinds.

3. Operational Drivers and Returns

Customer deposits climbed to a record $9.0 billion, up over $450 million year-over-year, underpinning demand resilience. The company repurchased over $450 million of stock and distributed $414 million in dividends, while net debt to adjusted EBITDA improved to 3.1x as management works to mitigate geopolitical volatility impacting Mediterranean bookings.