Carnival Quietly Puts Pricing Fears To Rest With Standout Quarter

Carnival Corporation (NYSE:CCL) stock rose Monday after the cruise operator reported record fourth-quarter profit and cash flow. Following the results, Goldman Sachs analyst Lizzie Dove raised her price forecast to $34 from $31 and reiterated a Buy rating. Earnings Snapshot The company reported adjusted EPS of 34 cents, which topped the consensus by 9 cents. Revenue hit a fourth-quarter record $6.33 billion, up $400 million, though just shy of the $6.37 billion estimate. Also Read: Stock Of The Day: Is The Carnival Rally About To End? For first-quarter 2026, Carnival expects adjusted earnings of 17 cents per share, compared with an 18-cent estimate. For full-year 2026, Carnival forecasts adjusted earnings of approximately $2.48 per share, ahead of the $2.42 estimate. Analyst View The analyst notes that Carnival Corporation delivered results and guidance that exceeded expectations despite a still-uncertain cruise market. Dove highlighted the strength of its diversified portfolio, brand enhancements, and private island investments. The analyst says that the company’s 110bps beat on the fourth quarter net yield guidance was a key positive, indicating that near-term trends held up better than expected, with same-ship pricing rising over 4% (excluding Celebration Key). The analyst notes that the strong fourth-quarter net yield alleviated concerns about Caribbean demand and pricing pressure, establishing a solid foundation for 2026 guidance. While first-quarter fiscal 2026 guidance was in line with expectations, CCL’s net yield growth outlook for the year appears measured, adds the analyst. The analyst notes that the growth outlook is benefiting from Celebration Key and RelaxAway, and factoring in a conservative deceleration versus fourth-quarter exit rates. Dove anticipates CCL’s underlying net yield growth to accelerate throughout the year, expecting growth of 1.8% in the first quarter, 2.9% in the second quarter, 3.2% in the third quarter, and 2.6% in the fourth quarter of fiscal 2026. CCL Price Action: Carnival shares were up 3.08% at $32.08 at the time of publication on Monday. The stock is trading near its 52-week high of $32.79, according to Benzinga Pro data. Read Next: Rivian, Sandisk, And Moderna Are Among the Top 10 Large-Cap Gainers Last Week (Dec. 15-Dec. 19): Are the Others in Your Portfolio? Photo via Shutterstock