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Cruise Demand Surges as Carnival Corp Achieves 20-Year High in Profits and Raises Outlook
In its second-quarter earnings report, Carnival Corporation announced a net income of $565 million (GAAP), equivalent to $0.42 per diluted share, representing a nearly $475 million increase from the same period last year. Adjusted net income reached $470 million, or $0.35 per share, more than tripling compared to the prior year and outperforming March guidance by approximately $185 million. Total revenue rose nearly 9.5 percent year-over-year to a record $6.33 billion, exceeding analyst forecasts of $6.21 billion.
CEO Josh Weinstein described the quarter as “another phenomenal quarter” and noted that the cruise line had delivered its highest margins in almost two decades. He highlighted strong close-in booking demand, premium onboard spending, and consistent record-setting net yields growth as key contributors to the performance. Operational efficiency gains were notable: cruise costs per available lower berth day (ALBD) declined by 0.3 percent, and fuel consumption per ALBD fell more than 6 percent.
Carnival also revealed that advances in its “SEA Change” initiative were achieved 18 months ahead of schedule. Adjusted EBITDA per ALBD and return on invested capital (ROIC) reached their highest levels in nearly two decades. Customer trust remains strong, with deposits hitting a new high of $8.5 billion and advanced bookings for 2026 aligning with 2025’s record-setting levels, coupled with historically strong pricing in constant currency.
Reflecting this strength, Carnival increased its full-year outlook. The company now expects adjusted net income to grow by over 40 percent year-over-year, raising EPS guidance from $1.83 to $1.97, while adjusted EBITDA is projected to reach $6.9 billion—$200 million ahead of prior estimates. The positive outlook was accompanied by a sharp rise in shareholder value: shares climbed nearly 9–10 percent following the earnings release, further buoyed by favourable global oil market dynamics.
Analysts have viewed the results as a strong indicator of cruise industry resilience, refuting concerns about weakening demand amid macroeconomic and geopolitical uncertainties. Critically, last-minute bookings and onboard expenditures remain high across various income segments, ensuring sustained profitability. While the company is still navigating pandemic-era debt, CFO David Bernstein noted ongoing efforts to refinance nearly $7 billion of debt, improving liquidity, and nearing investment-grade status.
Market response was uniformly positive. Rival cruise operators such as Royal Caribbean and Norwegian Cruise Line also saw share gains, reinforcing the sector-wide recovery narrative.
Carnival’s latest results signal enduring strength in cruise demand, underpinned by strategic pricing, onboard revenue, and effective cost management. The advance of its SEA Change targets, combined with a raised outlook and record bookings, suggests that cruise operators can continue expanding while investing in fleet modernisation and sustainability initiatives. The strong shareholder reaction further underscores improved industry sentiment and investor confidence.
