01—Abstract
Summary
Summary of the 10-Q filed June 26, 2026. Cited figures are marked; the original filing is the authoritative source.
Carnival Corporation reported solid revenue growth for the six months ended May 31, 2026, with total revenues reaching $12.83 billiona, an increase of 5.7% compared to the prior year period.
This growth was primarily driven by a 4.5% rise in passenger ticket revenues and a 7.8% increase in onboard and other revenues, reflecting both capacity expansion and higher guest spending. Net income for the six months was $801 millionb, a significant improvement from $494 million in the same period last year, largely due to an increase in operating income and a reduction in interest expense. The company's balance sheet shows a healthy liquidity position with $2.26 billion in cash and cash equivalents and $4.5 billion available under its revolving credit facility as of May 31, 2026.
Customer deposits also saw a substantial increase to $8.46 billionc, indicating strong future booking trends. Despite a notable increase in operating expenses, primarily due to higher fuel prices, the nonrecurrence of ship sale gains from the prior year, and increased payroll costs, the company managed to improve its overall profitability. The company also completed a significant DLC unification and redomiciliation in May 2026, streamlining its corporate structure.
02—Key points
Key Highlights
- Total revenues increased by 5.7% to $12.83 billion for the six months ended May 31, 2026, compared to $12.14 billion in the prior year.
- Net income significantly improved to $801 million for the six months ended May 31, 2026, from $494 million in the prior year.
- Operating income for the six months decreased slightly by $19 million to $1.46 billion, impacted by higher operating expenses.
- Interest expense, net decreased by 20% to $577 million for the six months ended May 31, 2026, due to lower debt levels and interest rates.
- Liquidity remains strong with $2.26 billion in cash and cash equivalents and $4.5 billion available under the revolving credit facility as of May 31, 2026.
- Customer deposits increased to $8.46 billion, signaling robust future booking demand.
- The company completed its DLC unification and redomiciliation in May 2026, simplifying its corporate structure.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed June 26, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $6.66B$6.33B | +5.3% |
| SG&A Expenses | $863.00M$816.00M | +5.8% |
| Operating Income | $851.00M$934.00M | −8.9% |
| Net Income | $537.00M$565.00M | −5.0% |
| EPS (Basic) | $0.39$0.43 | −9.3% |
| EPS (Diluted) | $0.39$0.42 | −7.1% |
| Shares Outstanding (Basic) | 1.38B1.31B | +5.3% |
| Shares Outstanding (Diluted) | 1.39B1.40B | −0.9% |
05—Questions
Frequently Asked Questions
What was the primary driver for the increase in revenue?
The increase in revenue was primarily driven by a 4.5% rise in passenger ticket revenues and a 7.8% increase in onboard and other revenues for the six months ended May 31, 2026. This was supported by a 1.2% capacity increase (ALBDs) and higher onboard spending by guests.
How did operating expenses change, and what were the main contributing factors?
Consolidated operating expenses increased by 6.7% to $8.2 billion for the six months ended May 31, 2026. Key factors contributing to this increase included net unfavorable foreign currency translation impacts, the nonrecurrence of gains from ship sales in the prior year, higher fuel prices, increased payroll and related expenses (partially due to crew travel costs from the Middle East conflict), and higher emission allowance costs.
What is the company's current liquidity position?
As of May 31, 2026, Carnival Corporation reported strong liquidity with $2.26 billion in cash and cash equivalents. Additionally, the company had $4.5 billion available for borrowing under its multicurrency revolving credit facility, and $10.8 billion in undrawn export credit facilities for future ship deliveries.
Were there any significant corporate structure changes during the period?
Yes, Carnival Corporation completed a significant DLC (Dual Listed Company) unification and redomiciliation in May 2026. This involved unifying the dual listed company structure under a single entity, Carnival Corporation Ltd., listed solely on the NYSE, and migrating its legal incorporation from Panama to Bermuda. This is expected to streamline the corporate structure.
06—Continue