Carnival's Cruise Comeback Is Real: Record Earnings, Dividend's Back, And 2026 Looks Even Bigger

Carnival Corporation & plc (NYSE:CCL) (NYSE:CUK) delivered a decisive earnings beat and reinstated its dividend after posting record fourth-quarter profit and cash flow.

Carnival reported fourth-quarter net income of $422 million, or 31 cents per share, up nearly 40% from a year ago. Adjusted net income was $454 million, or 34 cents per share, up 140% and exceeding guidance by more than $150 million on strong demand and cost controls.

Adjusted EPS of 34 cents topped the consensus by 9 cents. Revenue hit a fourth-quarter record $6.33 billion, up $400 million, though just shy of the $6.37 billion estimate. Adjusted EBITDA was a record $1.5 billion, with margins up nearly 300 basis points.

Also Read: Carnival Q4 Preview: Choppy Results; Analyst Expects 2026 To Be Catalyst-Driven

Gross margin yields rose 16%, and net yields in constant currency climbed 5.4%, both ahead of guidance.

Cruise costs per available lower berth day rose 2.2%. Adjusted cruise costs excluding fuel rose just 0.5%, 2.7 points better than guidance, helped by cost controls and timing of expenses.

Fuel consumption per available lower berth day fell 5.6%. Customer deposits hit a fourth-quarter record $7.2 billion.

For 2025, net income was $2.8 billion, and adjusted net income was a record $3.1 billion, both representing increases of more than 60%. Revenue was a record $26.6 billion, driven by record net yields.

Operating income reached a record $4.5 billion, up 25%, and adjusted EBITDA rose to $7.2 billion, up over $1 billion. Adjusted return on invested capital topped 13%, net debt to EBITDA was 3.4 times, and Fitch upgraded Carnival to investment grade.

Dividend

Carnival’s board reinstated the quarterly dividend, declaring 15 cents per share payable Feb. 27, 2026, to shareholders of record Feb. 13, 2026.

“We had record full-year net yields (in constant currency) and adjusted net income increased more than 60% driven by strong demand that outpaced unit cost increases. The momentum is carrying into 2026, which is shaping up to surpass even these remarkable results with another year of double-digit earnings growth and return on invested capital expected to exceed 13.5 percent, closing in on our 20-year high,” said Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein.

Outlook

For first-quarter 2026, Carnival expects adjusted earnings of 17 cents per share, compared with an 18-cent estimate. Net yields in constant currency are expected to increase by 1.6%, with adjusted cruise costs excluding fuel rising by 5.9% due to the timing of expenses.

For full-year 2026, Carnival forecasts adjusted earnings of approximately $2.48 per share, ahead of the $2.42 estimate, and adjusted net income of $3.5 billion, representing a 12% increase on less than 1% capacity growth. Net yields in constant currency are expected to rise 2.5%.

Carnival’s board recommended unifying its dual-listed structure into a single, NYSE-listed company, with incorporation shifting to Bermuda, subject to approval.

Price Action: CUK shares were up 16.72% at $30.72 at the time of publication on Friday. The stock is trading at a new 52-week high, according to Benzinga Pro data. CCL was up 9.07%.

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