Carnival Corporation delivered a record-breaking fiscal 2025, posting full-year revenue of $26.6 billion and adjusted EPS of $2.25, surpassing expectations for the fourth consecutive quarter. Q4 adjusted EPS of $0.34 beat analyst forecasts by 36%. Shares surged 9.4% in pre-market trading following the December 19, 2025 announcement.
About Carnival Corporation
Carnival Corporation and plc(NYSE/LSE: CCL; NYSE: CUK) is the world’s largest global cruise company and among the largest leisure travel companies on the planet. Founded in 1972 by Ted Arison as Carnival Cruise Line, the company adopted the name Carnival Corporation in 1993 to distinguish the parent from its flagship brand.
Headquartered in Miami, Florida (with Carnival plc based in Southampton, England), the company operates a fleet of 94 ships across eight iconic brands – AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises, and Seabourn – visiting more than 800 ports worldwide. As of fiscal year 2025, Carnival employs approximately 160,000 team members from 150 countries. The company holds a market capitalization of approximately $36.96 billion as of the December 2025 earnings announcement.
Carnival accounts for nearly 40% of the global cruise market and generated record revenues of $26.6 billion in fiscal 2025, while achieving an operating margin of 11.6% and a profit margin of approximately 10.37%. The company reinstated a quarterly dividend of $0.15 per share in December 2025 – its first dividend since the COVID-19 pandemic – following its achievement of investment-grade leverage metrics.
Top Financial Highlights
Fourth Quarter 2025 (Three Months Ended November 30, 2025)
- Total revenues reached $6.33 billion, up 6.6% year over year from $5.94 billion in Q4 2024
- Net income of $422 million ($0.31 diluted EPS), up nearly 40% versus Q4 2024
- Adjusted net income of $454 million ($0.34 adjusted EPS), surging over 140% year over year and outperforming September 2025 guidance by over $150 million
- Record adjusted EBITDA of $1.48 billion for Q4, with adjusted EBITDA margins up nearly 300 basis points year over year
- Gross margin yields were 16% higher than Q4 2024; record net yields (constant currency) were 5.4% higher than 2024
- Adjusted cruise costs excluding fuel per ALBD (constant currency) rose only 0.5%, beating guidance by 2.7 points
- Fuel consumption per ALBD decreased 5.6% year over year due to ongoing efficiency investments
- Record customer deposits of $7.2 billion surpassed the previous Q4 record
Full Year 2025 (Twelve Months Ended November 30, 2025)
- Full year record revenues of $26.6 billion, up from $25.0 billion in fiscal 2024
- Full year net income of $2.76 billion ($2.02 diluted EPS), versus $1.92 billion ($1.44 diluted EPS) in 2024
- Record adjusted net income of $3.1 billion ($2.25 adjusted EPS), up over 60% year over year
- All-time high full year operating income of $4.5 billion, up 25% compared to fiscal 2024
- Record adjusted EBITDA of $7.2 billion, up over $1 billion versus the prior year
- Cash from operations of $6.2 billion; cash and cash equivalents of $1.93 billion at year-end
- Net debt to adjusted EBITDA ratio improved to 3.4x (approximately one turn improvement from 2024); recognized as investment grade by Fitch
- Adjusted ROIC exceeded 13%
2026 Full Year Guidance
- Adjusted net income of approximately $3.5 billion (up ~12%), with adjusted EPS of approximately $2.48
- Adjusted EBITDA of approximately $7.63 billion
- Net yields (constant currency) expected up approximately 2.5% compared to record 2025 levels
- Less than 1% capacity growth planned for fiscal 2026
Beat or Miss?
| Metric | Reported | Estimated | Difference / Analysis |
| Q4 Adjusted EPS | $0.34 | $0.25 | +36% beat – the largest EPS surprise of the year |
| Q4 Revenue | $6.33 billion | $6.37 billion | -0.6% miss – slight shortfall on topline despite record yields |
| Q4 Adjusted EBITDA | $1.48 billion | $1.37 billion | +8.1% beat – driven by cost discipline |
| Full Year Adjusted EPS | $2.25 | ~$1.59 (Carnival plc estimate) | Significant beat reflecting multiple guidance upgrades |
| Full Year Revenue | $26.6 billion | ~$25.0 billion (prior year base) | Fourth consecutive quarter outperforming management guidance |
| FY2026 Adjusted EPS Guidance | $2.48 (midpoint) | $2.42 (consensus) | +2.5% beat on forward guidance |
| FY2026 EBITDA Guidance | $7.63 billion | $7.53 billion (consensus) | Above consensus |
What Leadership Is Saying?
“2025 was a truly phenomenal year. We set new records across our business, achieved investment grade leverage metrics and, as announced just today, reinstated our dividend. These milestones reflect the collective strength of our cruise line portfolio and confidence in our long-term future. The momentum is carrying into 2026, which is shaping up to surpass even these remarkable results with another year of double-digit earnings growth and return on invested capital expected to exceed 13.5%, closing in on our 20-year high.”– Josh Weinstein, Chief Executive Officer, Carnival Corporation
“We have reached a meaningful turning point, surpassing the investment grade leverage metric threshold with a net debt to adjusted EBITDA ratio of 3.4x for 2025, representing a nearly one turn improvement from 2024 and successfully completing our $19 billion refinancing plan in less than a year. These efforts strengthened our balance sheet by simplifying our capital structure, reducing interest expense and debt, optimizing our future debt maturities and enhancing our financial flexibility. In total, we have reduced our debt by over $10 billion since our peak less than three years ago.” – David Bernstein, Chief Financial Officer, Carnival Corporation
Historical Performance
Carnival Corporation YoY
| Category | Q4 FY2025 | Q4 FY2024 | Change (%) |
| Total Revenue | $6,330 million | $5,938 million | 6.60% |
| Passenger Ticket Revenue | $4,053 million | $3,854 million | 5.20% |
| Onboard and Other Revenue | $2,277 million | $2,084 million | 9.30% |
| Net Income | $422 million | $303 million | 39.30% |
| Adjusted Net Income | $454 million | $186 million | 144.10% |
| Operating Income | $735 million | $561 million | 31.00% |
| Adjusted EBITDA | $1,477 million | $1,220 million | 21.10% |
| Total Cruise Operating Expenses | $3,910 million | $3,833 million | 2.00% |
| Diluted EPS | $0.31 | $0.23 | 34.80% |
| Adjusted Diluted EPS | $0.34 | $0.14 | 142.90% |
| Cash from Operations | $1,518 million | $911 million | +66.6% |
Competitor Comparison
Q4 and Full Year 2025
| Category | Carnival CCL (FY2025) | Royal Caribbean RCL (FY2025) | Norwegian NCLH (FY2025) |
| Full Year Total Revenue | $26.6 billion | $17.9 billion | $9.83 billion |
| Full Year Revenue YoY Change | 6.40% | 8.80% | 3.70% |
| Full Year Net Income | $2.76 billion | $4.3 billion | $423.2 million |
| Full Year Adjusted Net Income | $3.1 billion | $4.3 billion | $1.045 billion |
| Full Year Adjusted EBITDA | $7.2 billion | $7.0 billion | $2.73 billion |
| Q4 Revenue | $6.33 billion | $4.3 billion | $2.24 billion |
| Q4 Net Income | $422 million | $754 million | Declined YoY |
| Q4 Adjusted EBITDA | $1.48 billion | $1.5 billion | $564 million |
| Dividend Reinstated | Yes — $0.15/share | Ongoing buybacks | N/A |
| Market Cap (at earnings) | ~$36.96 billion | ~$77.25 billion | N/A |
Royal Caribbean posted stronger net income growth for the year, driven by higher margin yields and more premium pricing. Norwegian reported modest 3.7% revenue growth and faced headwinds in Q4 from macroeconomic concerns and deployment challenges, with its stock declining 7.3% after its Q4 earnings announcement. Carnival’s scale advantages and reinstatement of the dividend signal a more robust recovery relative to Norwegian, while Royal Caribbean leads on absolute profitability.
How the Market Reacted?
Following the December 19, 2025 earnings announcement, Carnival’s stock surged approximately 9.4% to 9.8% in pre-market trading, reaching $28.56 to $31.12. The powerful market reaction reflected investor enthusiasm over multiple simultaneous milestones – including the dividend reinstatement, investment-grade rating from Fitch, a fourth consecutive guidance beat, and an optimistic double-digit earnings growth outlook for 2026.
The stock was approaching its 52-week high of $32.80 at the time, with analysts maintaining a largely bullish stance and a consensus price target of approximately $35.67. Sentiment across the market was firmly bullish, with the strong close-in demand environment, record customer deposit levels of $7.2 billion, and approximately two-thirds of 2026 capacity already booked at historical high prices reinforcing confidence in the company’s ongoing yield improvement trajectory.
