Carnival Q1 EPS Beats by $0.02, Revenue at $6.2B, Outlook Up $150M
Adjusted Q1 EPS of $0.20 topped forecasts by $0.02, while revenue hit a record $6.2 billion, exceeding estimates by $70 million. The company lifted full-year adjusted net income outlook by $150 million, announced a $2.5 billion buyback, but flagged more than $500 million in fuel cost pressure.
1. Record First-Quarter Performance
Carnival delivered adjusted Q1 EPS of $0.20, beating the $0.18 forecast, with revenue at a record $6.2 billion versus $6.13 billion expected. Adjusted net income reached $275 million and constant-currency net yields rose 2.7%, supported by double-digit 2026 bookings and a record $8 billion in customer deposits.
2. Fuel Cost Impact and Outlook
A $54 million unfavorable impact from fuel and currency weighed on results, with more than $500 million in net fuel cost increases factored into guidance. Carnival's fuel forecast assumes Brent averages $90 per barrel in April and May, $85 in Q3 and $80 in Q4.
3. Full-Year Guidance and Q2 Forecast
The company raised its full-year adjusted net income outlook by $150 million and expects fiscal 2026 EPS of about $2.21 with net income near $3.07 billion. For Q2, Carnival forecasts adjusted EPS around $0.34 and constant-currency net yields up approximately 2.0%.
4. Long-Term Targets and Buyback Program
As part of its PROPEL plan through 2029, Carnival targets over 16% return on invested capital and more than 50% EPS growth from 2025. The board also approved a $2.5 billion share repurchase program, set to begin after shareholder meetings on April 17, 2026.