Carnival Corporation & plc (NYSE:CCL) (NYSE:CUK) reported first-quarter 2026 results on Friday that beat analyst expectations on both adjusted earnings and revenue, though the stock traded lower following the release.

Earnings Beat And Revenue Growth

Adjusted EPS was 20 cents, topping the 18-cent estimate, while revenue rose 6.1% to $6.165 billion from $5.810 billion and beat the $6.134 billion estimate. Diluted GAAP EPS was 19 cents.

Net income attributable to Carnival was $258 million, compared with a loss of $78 million a year earlier. Adjusted net income was $275 million, and adjusted EBITDA reached a first-quarter record $1.267 billion.

The company said results exceeded guidance despite a $54 million, or 4 cents per-share, unfavorable impact from fuel prices and currency rates.

Operational Performance And Costs

Operating performance remained strong. Gross margin yields increased nearly 10%, while net yields in constant currency rose 2.7%, beating guidance by more than 1 point.

Cruise costs per available lower berth day increased 4.9%, while adjusted cruise costs excluding fuel rose 5.3%, better than guidance. Fuel consumption per ALBD declined 4.7%.

Demand And Booking Trends

Demand trends were robust. Bookings for 2026 rose by double digits, with nearly 85% of inventory already booked. Customer deposits reached a first-quarter record of nearly $8 billion, up nearly 10% year over year.

Liquidity, Outlook And Capital Allocation

Liquidity and cash flow improved. Operating cash flow was $1.263 billion, capital expenditures were $566 million, cash and equivalents totaled $1.424 billion, and total debt stood at $25.290 billion.

“We delivered a strong start to the year, with record first-quarter operating results that exceeded our guidance, driven by healthy fundamentals and solid execution across the business. This performance supported an increase to our full year operational outlook of nearly $150 million, helping to mitigate the impact of higher fuel prices,” commented Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein.

For the second quarter, Carnival expects adjusted EPS of about 34 cents, below the 42 cents estimate. For full-year 2026, it lowered adjusted EPS guidance to about $2.21 from $2.48, below the $2.36 estimate.

The company also announced a $2.5 billion share buyback program and introduced its PROPEL 2029 targets.

CCL Price Action: Carnival shares were down 3.82% at $24.31 at the time of publication on Friday, according to Benzinga Pro data.

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