Carnival Q1 Earnings Call Highlights

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MarketBeat

Fri, March 27, 2026 astatine 11:13 AM CDT 7 min read

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Carnival bushed December guidance successful Q1, reporting nett income of $275 million (up much than 55%) driven by a 2.7% output increase, stronger onboard spending, and grounds bookings/customer deposits of astir $8 billion with astir 85% of 2026 capableness already booked.
Management unveiled the multi‑year “Propel” model targeting by 2029 a return connected invested superior supra 16%, >50% EPS maturation versus 2025, organisation of >40% of currency from operations (≈$14 billion) to shareholders, positive a reinstated dividend and a recently announced $2.5 billion stock repurchase authorization.
However, Carnival reiterated substance is simply a cardinal risk: full‑year guidance of $2.21 EPS assumes a astir $0.38 per share headwind from higher substance prices, and a 10% alteration successful substance outgo would interaction results by astir $160 million (≈$0.11 per share).
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Carnival (NYSE:CCL) reported first-quarter fiscal 2026 results that exceeded its December guidance, supported by higher yields, better-than-expected outgo performance, and continued spot successful onboard spending. Management besides introduced a caller multi-year framework, “Propel,” which includes targets for higher returns and accrued superior returns to shareholders, alongside a recently announced $2.5 cardinal stock repurchase authorization.

CEO Josh Weinstein said the institution is “off to an fantabulous commencement to the year,” with first-quarter show coming successful up of guidance owed to “healthy fundamentals and coagulated execution.” He highlighted grounds first-quarter revenue, nett yields, operating income, EBITDA, and lawsuit deposits. Weinstein besides pointed to continued momentum successful onboard and pre-cruise sales, noting that guests are engaging earlier by purchasing “more inclusive packages, excursions and different experiences” up of sailing.

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CFO David Bernstein said Carnival delivered nett income of $275 million, which was more than 55% higher than the anterior twelvemonth and exceeded December guidance by $40 million, oregon $0.03 per share. Bernstein attributed the outperformance versus December guidance to 3 superior factors:

Revenue favorability: Yield accrued 2.7% year-over-year, much than 100 ground points amended than December guidance, driven by beardown closing demand, higher summons prices, and stronger onboard spending. Bernstein said output betterment was driven by increases connected some sides of the Atlantic.
Costs (excluding fuel) amended than expected: Cruise costs without substance per disposable little berth time (ALBD) roseate 5.3% year-over-year, which was “more than fractional a constituent better” than December guidance, helped by cost-saving initiatives firmed up during the quarter.
Additional operational items: Improvements successful depreciation, nett involvement expense, and substance consumption, including a 4.7% year-over-year simplification successful substance consumption.