Carnival Target Raised to $34 as Booking Stabilizes; Q4 Net Income Tops $3 Billion
Truist raised its price target on Carnival to $34 from $31, citing stabilized booking patterns and a modest supply-demand imbalance that may limit net yield growth. The company reported record Q4 revenues and EBITDA, net income above $3 billion (up 60% year-over-year), reinstated a $0.15 dividend and cut debt by $10 billion.
1. Price Target Increase
Truist lifted its price target on Carnival to $34 from $31 and maintained a Hold rating after assessing forward booking and pricing data. Analysts noted that supply in the contemporary and mass-market segments remains modestly above demand, suggesting near-term net yield growth may be tempered despite signs of booking stabilization.
2. Q4 2025 Financial Results
Carnival delivered record fourth-quarter and full-year revenues, yields, operating income and EBITDA in its Q4 2025 report. Net income exceeded $3 billion, rising 60% year-over-year, and the company reinstated its quarterly dividend at $0.15 per share.
3. Balance Sheet and Outlook
The operator reduced total debt by over $10 billion from peak levels and achieved a net debt-to-adjusted EBITDA ratio of 3.4×, reflecting investment-grade metrics. Strengthened profitability and disciplined deleveraging enhance financial flexibility as industry fundamentals continue to normalize.