Announces initial $2.5 billion share buyback program
MIAMI, March 27, 2026 /PRNewswire/ -- Carnival Corporation & plc ((NYSE/LSE: CCL, NYSE:CUK) announced financial results for the first quarter 2026 and provided an updated outlook.
Diluted EPS of $0.19 and adjusted EPS1 of $0.20, up 50 percent compared to the prior year.
Record revenues2 of $6.2 billion, gross margin yields up nearly 10 percent and record net yields1,2 (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 EBITDA1 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 income3 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 EBITDA2 of $1.3 billion.
Gross margin yields increased nearly 10 percent. Record net yields2 (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 ALBD1 (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.
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1 See "Non-GAAP Financial Measures" and "Constant Currency."
2 First quarter record.
3 Net income (loss) attributable to Carnival Corporation & plc.
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.
See "Guidance" for additional information on the company's 2026 outlook, "Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and "Constant Currency."
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 ALBD1 in 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 capital1
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 EBITDA1 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.
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1 See "Non-GAAP Financial Measures" and "Constant Currency."
Share Buyback Program
Today, the Boards of Directors approved an initial $2.5 billion share buyback program1.
"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.
Other Recent Highlights
AIDAluna completed its upgrade as part of AIDA Evolution (learn more here) and will begin sailing to Celebration Key in November 2027, joining Carnival Cruise Line and Princess Cruises in sailing to the exclusive destination (learn more here).
Carnival Cruise Line returned to New York's Times Square for the lighting of the iconic New Year's Eve Ball as the official cruise line sponsor for the fifth consecutive year (learn more here).
Holland America Line co-sponsored "Cruise Week" on the "Wheel of Fortune," America's longest-running syndicated game show (learn more here), featuring its Alaska itineraries and contributing to record January bookings made on the cruise line's site.
Cunard was named the headline sponsor for the 2026 Olivier Awards, the UK's most prestigious stage honors (learn more here).
Awards and Recognitions:
Princess Cruises was recognized for 'Best Big-Ship Itineraries' at the 2026 The Points Guy Awards (learn more here).
Seabourn Venture earned a spot in Condé Nast Traveler's 2026 Gold List (learn more here).
Celebration Key was recognized with the Leading Edge Award from the World Waterpark Association for its innovation, design and guest experience (learn more here).
The company was recognized as one of the World's Most Admired Companies by Fortune for the second consecutive year (learn more here) and America's Most Trusted Companies by Forbes (learn more here).
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1
The program covers shares of Carnival Corporation and/or Carnival plc. Repurchases under the program may be made from time to time in amounts and at prices the company deems appropriate. The timing, volume and structure of any share buyback will be subject to market and general economic conditions, the prevailing share price(s), applicable legal requirements and the receipt of any required shareholder authority for Carnival plc.
Guidance
(See "Non-GAAP Financial Measures," "Reconciliation of Forecasted Data" and "Constant Currency")
2Q 2026
Full Year 2026
Year over year change
CurrentDollars
Constant Currency
Current Dollars
Constant Currency
Net yields
Approx. 3.7%
Approx. 2.0%
Approx. 4.1%
Approx. 2.75%
Adjusted cruise costs excluding fuel per ALBD
Approx. 4.0%
Approx. 2.6%
Approx. 4.4%
Approx. 3.1%
2Q 2026
Full Year 2026
ALBDs (in millions) (a)
24.7
97.4
Capacity growth compared to prior year
1.9 %
0.9 %
Fuel consumption in metric tons (in millions)
0.7
2.8
Fuel cost per metric ton consumed (excluding emission allowances) (b)
$ 795
$ 718
Fuel expense (including emission allowances expense) (in billions)
$ 0.61
$ 2.15
Depreciation and amortization expense (in billions)
$ 0.73
$ 2.97
Interest expense, net of capitalized interest and interest income (in billions)
$ 0.27
$ 1.09
Adjusted EBITDA (in billions)
Approx. $1.48
Approx. $7.19
Adjusted net income (in millions)
Approx. $470
Approx. $3,070
Adjusted earnings per share - diluted
Approx. $0.34
Approx. $2.21
Weighted-average shares outstanding - basic
1,386
1,385
Adjusted weighted-average shares outstanding - diluted
1,392
1,392
(a)
See "Notes to Statistical Information."
(b)
Given the recent spike and volatility in fuel prices, we believe it is reasonable to forecast fuel based on 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 rather than use the spot price for our guidance. See sensitivities for fuel costs included below.
Currencies (USD to 1)
2Q 2026
Full Year 2026
AUD
$ 0.71
$ 0.70
CAD
$ 0.73
$ 0.73
EUR
$ 1.15
$ 1.16
GBP
$ 1.34
$ 1.34
Sensitivities (impact to adjusted net income in millions)
2Q 2026
Remainder of 2026
1% change in net yields
$ 48
$ 160
1% change in adjusted cruise costs excluding fuel per ALBD
$ 28
$ 87
10% change in fuel cost per metric ton (excluding emission allowances)
$ 56
$ 160
100 basis point change in variable rate debt
—
$ 31
1% change in currency exchange rates
$ 6
$ 23
Capital Expenditures
For the remainder of 2026, newbuild capital expenditures are $0.6 billion and non-newbuild capital expenditures are $1.8 billion. These future capital expenditures will fluctuate with foreign currency movements relative to the U.S. Dollar. In addition, these figures do not include potential stage payments for ship orders that the company may place in the future.
Conference Call
The company has scheduled a conference call with analysts at 10:00 a.m. EDT (2:00 p.m. GMT) today to discuss its earnings release. This call can be listened to live, and additional information including the company's earnings presentation and debt maturities schedule, can be obtained via Carnival Corporation & plc's website at www.carnivalcorp.com and www.carnivalplc.com.
Carnival Corporation & plc is the largest global cruise company, and among the largest leisure travel companies, with a portfolio of world-class cruise lines, AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn.
Additional information can be found on www.carnivalcorp.com, www.aida.de, www.carnival.com, www.costacruises.com, www.cunard.com, www.hollandamerica.com, www.pocruises.com, www.princess.com and www.seabourn.com.
Cautionary Note Concerning Factors That May Affect Future Results
Some of the statements, estimates or projections contained in this document are "forward-looking statements" that involve risks, uncertainties and assumptions with respect to us, including statements concerning future results, operations, strategy, outlooks, plans, goals, reputation, cash flows, liquidity and other events which have not yet occurred. These statements are intended to qualify for the safe harbors from liability provided by Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements other than statements of historical facts are statements that could be deemed forward-looking. These statements are based on current expectations, estimates, forecasts and projections about our business and the industry in which we operate and the beliefs and assumptions of our management. We have tried, whenever possible, to identify these statements by using words like "will," "may," "could," "should," "would," "believe," "depends," "expect," "goal," "aspiration," "anticipate," "forecast," "project," "future," "intend," "plan," "estimate," "target," "indicate," "outlook," and similar expressions of future intent or the negative of such terms.
Forward-looking statements include, but are not limited to, statements that relate to our outlook and financial position, as well as, statements regarding:
• Pricing
• Adjusted net income
• Booking levels
• Adjusted EBITDA
• Occupancy
• Adjusted EBITDA per ALBD
• Interest, tax and fuel expenses
• Adjusted EBITDA margin
• Currency exchange rates
• Adjusted earnings per share
• Goodwill, ship and trademark fair values
• Net debt to adjusted EBITDA
• Liquidity and credit ratings
• Net yields
• Investment grade leverage metrics
• Adjusted cruise costs per ALBD
• Shareholder returns
• Adjusted cruise costs excluding fuel per ALBD
• Estimates of ship depreciable lives and residual values
• Adjusted ROIC
Because forward-looking statements involve risks and uncertainties, there are many factors that could cause our ...
