Carnival Corp. Achieves Record Performance in 2025
Written by Emily J. Thompson, Senior Investment Analyst
Source: Fool
- Record Performance: Carnival Corp. set new records in 2025, achieving historical highs in revenue, net yields, operating income, customer deposits, and adjusted EBITDA, indicating strong market performance and future growth potential.
- Strong Quarterly Results: In the fourth fiscal quarter ending November 30, Carnival exceeded guidance across metrics, suggesting continued strong profitability in 2026, with bookings and occupancy at historical highs, reflecting sustained consumer demand.
- Debt Management Strategy: Despite incurring significant debt during the pandemic, Carnival successfully refinanced $19 billion in 2025, reducing its debt by $10 billion from its 2023 peak, which lowers financial risk and enhances future repayment capacity.
- Attractive Stock Valuation: With a forward P/E ratio below 11, Carnival's stock appears undervalued, and the management's decision to restart dividends signals confidence in future prospects; if interest rates continue to decline, Carnival is poised to outperform the market again.
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Analyst Views on CCL
Wall Street analysts forecast CCL stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for CCL is 37.59 USD with a low forecast of 33.00 USD and a high forecast of 45.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
19 Analyst Rating
15 Buy
4 Hold
0 Sell
Strong Buy
Current: 31.150
Low
33.00
Averages
37.59
High
45.00
Current: 31.150
Low
33.00
Averages
37.59
High
45.00
About CCL
Carnival Corporation is a global cruise and leisure travel company. The Company has a portfolio of cruise lines, including AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises (Australia), P&O Cruises (UK), Princess Cruises, and Seabourn. The Company's segment includes NAA cruise operations, Europe cruise operations (Europe), Cruise Support and Tour and Other. Its Cruise Support segment includes its portfolio of port destinations and exclusive islands as well as other services, all of which are operated for the benefit of its cruise brands. In addition to its cruise operations, it owns Holland America Princess Alaska Tours, a tour company in Alaska and the Canadian Yukon, which complements its Alaska cruise operations. Its Tour and Other segment represents the hotel and transportation operations of Holland America Princess Alaska Tours and other operations. Its tour company owns and operates hotels, lodges, glass-domed railcars and motorcoaches.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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Carnival Reports Record Performance in 2025
- Record Performance: Carnival achieved record revenue, net yields, and adjusted EBITDA in 2025, reflecting strong market demand and profitability, although high debt remains a challenge.
- Debt Management: The company successfully refinanced $19 billion in debt in 2025, reducing it by $10 billion from its 2023 peak, with lower interest rates aiding faster debt repayment and enhancing future financial flexibility.
- Market Performance: Carnival's stock outperformed the S&P 500 with a 23% increase over the past year, although investors remain cautious due to its high debt, raising questions about its ability to sustain market outperformance.
- Dividend Restart: The company has restarted its dividend payments, indicating management's confidence in future profitability, and with a low forward P/E ratio of less than 11, it presents an attractive opportunity in a diversified portfolio.
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