10-QPeriod: Q1 FY2026

CARNIVAL CORP Quarterly Report for Q1 Ended Feb 28, 2026

Filed March 27, 2026For Securities:CCL

Summary

Carnival Corporation & plc (CCL) reported a return to profitability for the three months ended February 28, 2026, with a net income of $258 million ($0.19 diluted EPS) compared to a net loss of $78 million ($0.06 diluted EPS) in the prior year period. Total revenues increased by 6.1% to $6.17 billion, driven by a 5.0% rise in passenger ticket revenue and an 8.3% increase in onboard and other revenues. This performance was bolstered by favorable foreign currency translation impacts and stronger onboard spending. The company demonstrated solid operational cash flow generation, with net cash provided by operating activities increasing to $1.3 billion from $0.9 billion in the prior year. This improvement was attributed to increased earnings and positive working capital changes, although partially offset by the non-recurrence of gains from debt extinguishment. Despite significant debt repayments ($945 million) and dividend payments ($208 million) in the financing activities section, Carnival maintained a strong liquidity position with $1.4 billion in cash and cash equivalents and $4.5 billion available under its revolving credit facility.

Financial Highlights

48 data points
Beta

Revenue

$6.17B

Net Income

$258.00M

4.2% Net Margin

EPS (Diluted)

$0.19

Total Assets

$51.57B

Cash & Equivalents

$1.42B

Free Cash Flow

$697.00M

Financial Statements
Beta
Revenue$6.17B
SG&A Expenses$924.00M
Operating Income$607.00M
Net Income$258.00M
EPS (Basic)$0.19
EPS (Diluted)$0.19
Shares Outstanding (Basic)1.38B
Shares Outstanding (Diluted)1.39B

Key Highlights

  • 1Net income turned positive at $258 million for the quarter, a significant improvement from a net loss of $78 million in the prior year.
  • 2Total revenues grew 6.1% year-over-year to $6.17 billion, driven by increases in both passenger ticket and onboard/other revenues.
  • 3Operating income rose by $64 million to $607 million, reflecting improved revenue generation and cost management.
  • 4Cash flow from operations strengthened, reaching $1.3 billion, up from $0.9 billion in the prior year period.
  • 5Customer deposits increased significantly to $7.47 billion, indicating strong future booking trends.
  • 6Interest expense decreased by 23% to $291 million due to lower average interest rates and reduced total debt.
  • 7The company reported compliance with all debt covenants as of February 28, 2026.

Frequently Asked Questions

The primary drivers of the revenue increase were a 5.0% rise in passenger ticket revenues, attributed to higher ticket prices and favorable foreign currency translation, and an 8.3% increase in onboard and other revenues, driven by higher onboard spending and favorable foreign currency impacts.

Carnival Corporation & plc made significant principal repayments of long-term debt, totaling $945 million in the quarter. Interest expense decreased by 23% due to lower average interest rates and a reduction in total debt. The company maintained compliance with its debt covenants.

As of February 28, 2026, Carnival Corporation & plc had $5.9 billion in liquidity, comprising $1.4 billion in cash and cash equivalents and $4.5 billion available under its multicurrency revolving credit facility. The company also has $10.9 billion in undrawn export credit facilities.

The company is involved in several legal proceedings, including a Helms-Burton Act case and class-action lawsuits related to COVID-19. However, management believes the ultimate outcome of these matters will not have a material impact on its consolidated financial statements.