Carnival stock rises 12% on earnings beat and raised guidance

Carnival Corp. (NYSE:CCL) experienced a 12% increase in its stock price after surpassing earnings expectations and raising guidance for fiscal year 2026. Despite inflation and high fuel costs affecting consumer discretionary spending, the cruise operator showed strong performance driven by close-in demand, increased onboard spending, and effective cost management.

Trading at a P/E ratio of 11.4 on $27.3 billion in revenue, the stock is considered undervalued according to InvestingPro analysis. Carnival reported strong forward bookings through 2027 and 2028, and remains focused on optimizing returns through fleet and product investments. Six analysts have recently raised their earnings forecasts for the upcoming period, supporting the positive outlook.

The company aims to achieve parity in Europe deployment with the Caribbean by 2027, with non-newbuild capital expenditures expected to rise to $2.4 billion. Melius maintained a Buy rating on the stock, noting that some investors had already accounted for a guidance revision. Earnings will be announced on September 29, with options data forecasting a potential 6.2% stock movement.

Analysts at TD Cowen, Goldman Sachs, and Stifel have adjusted their price targets for Carnival, citing fuel cost concerns, yield issues, and capacity challenges in the Caribbean, while retaining a Buy rating.