Carnival Reports 50% EPS Gain, $6.2B Revenues and $2.5B Buyback
Carnival Corporation reported Q1 diluted EPS of $0.19 and adjusted EPS of $0.20, up 50% YoY, alongside record revenues of $6.2 billion and a nearly 10% gross margin yield increase. The company launched a $2.5 billion share buyback, unveiled PROPEL targets and recorded double-digit booking growth with $8 billion deposits.
1. Q1 Financial Performance
Carnival reported Q1 diluted EPS of $0.19 and adjusted EPS of $0.20, marking a 50% increase year-over-year. Revenues reached $6.2 billion with gross margin yields up nearly 10%, record adjusted EBITDA of $1.3 billion, and net yields increasing 2.7% in constant currency.
2. Shareholder Distributions and Outlook
The board approved an initial $2.5 billion share buyback and raised full-year operational outlook by $150 million, targeting $7 billion in adjusted EBITDA. Guidance assumes net yields up about 2.75% constant currency and adjusted cruise costs ex-fuel rising roughly 3.1%, mitigating over $500 million in fuel cost pressure.
3. PROPEL Strategy and Bookings Momentum
Carnival introduced PROPEL long-term targets focused on earnings growth, shareholder returns and disciplined capacity through 2029. Advance bookings for 2026 climbed double-digits, with nearly 85% of sailings sold and customer deposits at $8 billion, up about 10% year-over-year at historically high prices.