Carnival Corporation has announced financial results for the first quarter 2026 and provided an updated outlook.

• Diluted EPS of $0.19 and adjusted EPS of $0.20, up 50 percent compared to the prior year.
• Record revenues of $6.2 billion, gross margin yields up nearly 10 percent and record net yields (in constant currency), outperforming guidance on strong close-in demand.
• Bookings for 2026 up double digits, further strengthening the company’s record booked position at historically high prices (in constant currency).
• Expects operational improvement of nearly $150 million in full year 2026 adjusted net income¹ compared to December guidance, partially mitigating the impact from recent changes in fuel prices.
• Announces PROPEL, a new set of long-term targets designed to reflect continued earnings growth momentum, outsized shareholder distributions and even higher returns to be achieved by 2029.

 

“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,” said Carnival Corporation & plc’s Chief Executive Officer Josh Weinstein.

“We remain on track to deliver solid yield growth, continued cost discipline and $7 billion in adjusted EBITDA this year, underscoring the strength of demand across our portfolio, progress on our long-term strategy, and the advancements we have made positioning the business to perform across a range of environments.”

“With this strong foundation in place, we are focused on the next chapter of value creation for Carnival. Today, we are introducing PROPEL: Powering Growth and Returns, Responsibly — our new set of long-term targets. At its core, PROPEL is about converting strong demand into higher returns, earnings growth and cash flow while maintaining disciplined capacity growth and a strong balance sheet,” Weinstein added.

First Quarter 2026 Results

• Net income of $258 million and adjusted net income of $275 million, outperformed guidance despite a $54 million ($0.04 adjusted EPS) unfavorable impact from fuel prices and currency rates compared to guidance.
• Record adjusted EBITDA of $1.3 billion.
• Gross margin yields increased nearly 10 percent. Record net yields (in constant currency) increased 2.7 percent, which outperformed guidance by over 1 point.
• Cruise costs per available lower berth day (“ALBD”) increased 4.9 percent. Adjusted cruise costs excluding fuel per ALBD (in constant currency) increased 5.3 percent, better than guidance.
• Fuel consumption per ALBD decreased 4.7 percent due to the company’s efforts and investments to continuously reduce fuel consumption in its operations.

 

Advance Sales

“We delivered an incredibly strong start to the year, achieving our highest level of bookings ever on strong demand that extended well into 2028 sailings,” Weinstein said.

“Bookings for 2026 were up double digits, which further pulled forward our already record booked position for the remainder of the year at historically high prices (in constant currency),” he continued.

“With nearly 85 percent of 2026 already on the books and an even smaller amount of inventory available compared to this time last year, we are well positioned to deliver yield improvement in the back half of the year. Continued demand strength is also clearly reflected in higher first quarter onboard revenues and an acceleration in pre-cruise onboard sales.”

Customer deposits reached a first quarter record of nearly $8 billion, surpassing the prior year’s high by nearly 10 percent, reflecting the demand momentum and reinforcing the company’s strong cash flow profile.

2026 Outlook

For the full year 2026, the company expects:

• Net yields (in constant currency) up approximately 2.75 percent compared to record 2025 levels and 0.25 percentage points better than December guidance. Net yields (in constant currency) up approximately 3.25 percent after normalizing for the impact of the summer 2025 close-in decision to redeploy away from the previously planned first quarter 2026 Arabian Gulf voyages and the impacts of loyalty program accounting for Carnival Cruise Line.
• Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 3.1 percent compared to 2025 and better than December guidance. Adjusted cruise costs excluding fuel per ALBD (in constant currency) up approximately 2.3 percent after normalizing for the partial year of operating expenses from Celebration Key, Grand Bahama and RelaxAway, Half Moon Cay as well as the timing of certain expenses between the years.
• Operational improvement of nearly $150 million in adjusted net income compared to December guidance, driven by improvements in both net yields and adjusted cruise costs excluding fuel per ALBD, which partially mitigates the impact from recent changes in fuel prices of more than $500 million.
• The company’s guidance reflects the purchased price of fuel for the month of March and early April, Brent averaging $90 per barrel for the remainder of April and May, Brent averaging $85 per barrel for the third quarter, and Brent averaging $80 for the fourth quarter. See sensitivities for fuel costs included below.

 

PROPEL: Powering Growth & Returns, Responsibly

“We surpassed our SEA Change targets in nearly half the expected time, more than doubling return on invested capital and delivering our highest adjusted EBITDA per ALBD¹in almost two decades alongside a meaningful reduction in greenhouse gas emissions. PROPEL builds on that foundation and reflects our confidence in the durability and earnings power of our business,” Weinstein noted.

The company is introducing PROPEL, a new set of long-term targets designed to reflect continued earnings growth momentum, outsized shareholder distributions and even higher returns to be achieved by 2029.

PROPEL Targets:

• Greater than 16 percent return on invested capital
• More than 50 percent adjusted EPS growth from 2025
• More than 40 percent of cash from operations distributed to shareholders (approximately $14 billion)

 

These targets will be accomplished responsibly, as the company also intends to achieve a 2.75x net debt to adjusted EBITDA ratio and a reduction of the company’s greenhouse gas emissions rate by more than 25 percent compared to 2019 levels.

The keys to achieving PROPEL are grounded in:

• The strategic advantage of the company’s industry leading portfolio of world-class cruise lines
• Continued focus on commercial excellence and disciplined execution, driving demand that outpaces intentionally measured capacity growth
• Investing in return-generating midlife ship refurbishment programs for the company’s existing fleet and in its exclusive differentiated destinations in the Caribbean region and Alaska
• Building on industry-leading cost structure by further leveraging scale and best practices, and improving productivity
• Aggressively leveraging technology to enhance revenue and reduce cost

 

PROPEL, and all of the keys to its success, is powered by the best team in all of travel and leisure, aligned on delivering the company’s purpose, mission and long-term goals.

Share Buyback Program

Today, the Boards of Directors approved an initial $2.5 billion share buyback program.

“Initiating an opportunistic buyback program reflects our strong and growing free cash flow generation and ongoing commitment to return value to our shareholders,” commented Carnival Corporation & plc’s Chief Financial Officer David Bernstein.

“With more than $800 million in total dividend distributions expected this year, our newly authorized share buyback program, and a roadmap to delivering approximately $14 billion to our shareholders through 2029, we continue to demonstrate confidence in our operating performance, our focus on disciplined capital allocation and our commitment to accelerating shareholder returns.”

Due to legal requirements associated with the current open voting period for the unification of the dual listed company (“DLC”) structure, the program will commence following the meetings of shareholders expected to be held on April 17, 2026 and does not have an expiration date.