Guidance
New Propel plan targets ROIC above 16%, EPS growth >50% by 2029
Guidance tone
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AI
Demand
Capex
CCL
FY2026 Q1
IMPROVING
Carnival Corporation Ltd. Common Shares earnings call
Buzzberg read
New Propel plan targets ROIC above 16%, EPS growth >50% by 2029
Carnival reported record Q1 2026 results ahead of guidance, driven by higher yields and cost control. Management introduced the Propel long-term plan targeting ROIC above 16% and $14B in shareholder returns by 2029. Guidance for full-year EPS is $2.21, absorbing a significant fuel price headwind. Q1 net income $275M, 55% higher YoY, beating guidance by $40M (3 cents).
Buzzberg read New Propel plan targets ROIC above 16%, EPS growth >50% by 2029 Carnival reported record Q1 2026 results ahead of guidance, driven by higher yields and cost control. Management introduced the Propel long-term plan targeting ROIC above 16% and $14B in shareholder returns by 2029. Guidance for full-year EPS is $2.21, absorbing a significant fuel price headwind. Q1 net income $275M, 55% higher YoY, beating guidance by $40M (3 cents). Read full analysisCollapse analysis
Carnival reported record Q1 2026 results ahead of guidance, driven by higher yields and cost control. Management introduced the Propel long-term plan targeting ROIC above 16% and $14B in shareholder returns by 2029. Guidance for full-year EPS is $2.21, absorbing a significant fuel price headwind. Q1 net income $275M, 55% higher YoY, beating guidance by $40M (3 cents).
- Record Q1 revenues, net yields, customer deposits (~$8B, up 10% YoY).
- Full-year 2026 EPS guided to $2.21, with $500M fuel headwind partially offset by $150M operational improvement.
- Propel plan: ROIC >16% by 2029, >50% EPS growth vs 2025, $14B+ capital returns (dividend + $2.5B buyback authorized).
Revenue
$6.165B
-3% QoQ
EPS
$0.20
-41% QoQ
Gross margin
36.11%
reported
Op margin
9.85%
reported
What changed this quarter
Demand
Record bookings: current-year up 10%, 85% of 2026 already on books
Management expressed strong confidence in long-term targets and resilience despite geopolitical volatility, emphasizing record bookings, strategic agility, and a proven track record.
Macro
Fuel price spike creates $500M headwind, partially absorbed by operational gains
Record Q1 revenues, net yields, customer deposits (~$8B, up 10% YoY).
Buybacks
Share repurchase program of $2.5 billion announced
Full-year 2026 EPS guided to $2.21, with $500M fuel headwind partially offset by $150M operational improvement.
AI, capex & demand read
Platform & monetization
Management sees AI as a growing factor in how consumers discover and book cruises, with efforts to optimize their presence in AI engines, though full adoption for complex cruise purchases is expected to lag other retail experiences.
Bookings & conversion
Record bookings: current-year up 10%, 85% of 2026 already on books. Management expressed strong confidence in long-term targets and resilience despite geopolitical volatility, emphasizing record bookings, strategic agility, and a proven track record.
Investment and capacity
Capital allocation through 2029 includes reinvesting over $15 billion into the business, funding disciplined capacity growth (only three ships during 2026-2029) and modernization programs like IEDL Evolution, while returning more than 40% of cash from operations to shareholders.
Tone · Confident
Management expressed strong confidence in long-term targets and resilience despite geopolitical volatility, emphasizing record bookings, strategic agility, and a proven track record.
Forward guidance
ImprovingGuidance tone · was IN LINE last Q
| Metric | Period | Range | Midpoint | Status |
|---|---|---|---|---|
| EPS | FY2026 | $2.21 | $2.21 | GUIDED |