Banking on higher ticket prices and demand for cruise
itineraries and recreational experiences, Carnival
Corporation has forecast a strong annual profit after beating quarterly earnings estimates.
Carnival shares were up as much as 10.2 percent and the
company reinstated its dividend payouts after suspending them following the pandemic
impact. Initial dividends of 15 cents per share were declared, with a record
date of February 13, 2026.
In September 2025, the company targeted investment efforts from
land-based activities such as resorts and hotels and has been utilizing AI to
improve in areas such as marketing.
Carnival is also investing in private islands, such as the
recently opened Celebration
Key, with more destinations such as RelaxAway and Half Moon Cay planned for
2026.
Affluent consumers appear to have shrugged off macroeconomic
challenges and maintained discretionary spending, fueling growth across
entertainment, hotels and leisure travel.
"CCL's winning combination of affordable packages to
popular destinations has withstood consumer health and economic uncertainty
over the past few months," said Kim Noland, analyst with Gimme Credit in a
statement.
Carnival’s booking trends rose over the last three months,
hinting at a strong momentum heading into the wave season as cruise promotions begin
after winter holidays and last until the end of March 2026.
"Strong booking volumes continued from Black Friday
through Cyber Monday, even outpacing prior year's robust levels, which is a
favorable indicator for wave season," said Carnival CEO Josh Weinstein.
The company says it expects full-year adjusted earnings per
share to be up to $2.48, compared with analysts' estimates of $2.43 according
to data compiled by LSEG with fourth quarter adjusted profit at 34 cents per
share, above analysts' estimates of 25 cents.
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