CCL

V.F. Corporation VFC is likely to register year-over-year top-line decline when it posts second-quarter fiscal 2027 earnings on Oct. 28, before the opening bell. The Zacks Consensus Estimate for quarterly revenues is pegged at $2.7 billion, indicating a 3.9% dip from the prior-year quarter's figure. The consensus estimate for earnings is pegged at 54 cents per share, which indicates a rise of 3.9% from the year-ago quarter's figure. However, the metric has been stable in the past 30 days. V.F. Corp. delivered a negative earnings surprise of 22.7% in the last reported quarter. In the trailing four quarters, the company's earnings beat the Zacks Consensus Estimate by 34%. V.F. Corporation price-eps-surprise | V.F. Corporation Quote V.F. Corp.'s second-quarter fiscal 2027 results are likely to reflect strength in its outdoor segment and gains from The North Face, Timberland and Altra brands. The North Face has been benefiting from transitional outerwear, shells, equipment and the Altamesa V2 launch, while Timberland continued to build around the six-inch boot and boat shoe. Management expects these brands to benefit from sustained investments in product innovation, marketing and direct-to-consumer (DTC) initiatives. Altra is also likely to remain a growth driver, supported by product launches and increasing brand awareness. In its last earnings call, management expected The North Face to deliver flat to slightly higher revenues in the fiscal second quarter. Our model expects Outdoor revenues to rise 2.6% year over year, and revenues at The North Face to grow 3.7% and Timberland to increase 7.5% in the fiscal second quarter. The company continues to redirect resources toward DTC, marketing, technology and supply-chain capabilities. Such initiatives are likely to have boosted consumer engagement and strengthened brand relevance. The combination of direct-channel investment, inventory discipline and a diversified sourcing base offers VFC additional operating levers. VFC's lower cost base remains a source of reinvestment and margin support. Management had also anticipated gross margin to increase year over year in the quarter under review. However, the fiscal second quarter is expected to remain pressured by continued softness at Vans. Management projects second-quarter revenues at Vans to decline approximately 9% year over year. Weakness in Vans wholesale, foreign-exchange headwinds and muted demand in Asia-Pacific remain key risks. Macroeconomic challenges are also expected to have remained a headwind during the quarter. The ongoing geopolitical disruptions in the Middle East, softer demand in Europe and uncertainty surrounding tariffs are likely to have pressured the revenue trends. Such limitations are likely to have pressured the top-line performance in the fiscal second quarter. VFC has implemented sourcing diversification, pricing actions and supply-chain mitigation initiatives to lessen the tariff impact. We had anticipated Vans constant-currency revenues to drop 8.9% year over year for the quarter under review. Our proven model conclusively predicts an earnings beat for V.F. Corp. this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chance of an earnings beat. You can uncover the best stocks before they're reported with our Earnings ESP Filter. V.F. Corp. currently has an Earnings ESP of +0.80% and a Zacks Rank of 3. Going by the price/earnings ratio, VFC stock is currently trading at 13.86 on a forward 12-month basis, lower than 15.93 of the Textile - Apparel industry. Also, it is trading lower than its median of 15.43. Image Source: Zacks Investment Research The recent market movements show that VFC's shares have gained 3.3% in the past three months against the industry's 2.2% drop. Image Source: Zacks Investment Research Here are some more companies, which according to our model, also have the right combination of elements to post an earnings beat: Ralph Lauren Corporation RL currently has an Earnings ESP of +0.56% and a Zacks Rank of 2. RL is likely to register top and bottom-line growth when it reports second-quarter fiscal 2027 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.1 billion, indicating 6.1% growth from the figure reported in the year-ago quarter. You can see the complete list of today's Zacks #1 Rank stocks here. The consensus estimate for Ralph Lauren's fiscal second-quarter earnings is pegged at $4.22 a share, implying 11.4% growth from the year-earlier quarter. The consensus mark has moved up a penny in the past seven days. RL has a trailing four-quarter earnings surprise of 8.7%, on average. Carnival Corp. CCL currently has an Earnings ESP of +1.05% and a Zacks Rank of 3. CCL is likely to register top-line growth when it reports fourth-quarter fiscal 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $6.5 billion, indicating a 1.9% increase from the figure reported in the year-ago quarter. The consensus estimate for CCL's fiscal fourth-quarter earnings is pegged at 22 cents per share, implying a 35.3% plunge from the year-ago quarter's actual. The consensus mark has dropped a couple of cents in the past 30 days. CCL has a trailing four-quarter earnings surprise of 17.4%, on average. Mohawk Industries, Inc. MHK currently has an Earnings ESP of +0.04% and a Zacks Rank of 3. MHK is likely to register top-line growth when it reports third-quarter 2026 results. The Zacks Consensus Estimate for its quarterly revenues is pegged at $2.9 billion, indicating 3.4% growth from the figure reported in the year-ago quarter. The consensus estimate for MHK's earnings has increased a penny to $2.57 per share in the past 30 days. The consensus estimate indicates a decline of 3.8% from the year-ago quarter's actual. MHK has a trailing four-quarter earnings surprise of 12.3%, on average. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report V.F. Corporation (VFC) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report Ralph Lauren Corporation (RL) : Free Stock Analysis Report Mohawk Industries, Inc. (MHK) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

SpaceX SPCX shares have surged as much as 12% in Wednesday's trading session after Elon Musk's aerospace and artificial intelligence company delivered blowout Q3 results Tuesday evening, driven by soaring demand for AI infrastructure and continued growth in its Starlink satellite business. Adding to investor enthusiasm, Musk discussed a potential merger with Tesla TSLA) while outlining extraordinarily ambitious revenue projections that could help SpaceX justify its premium valuation and a rally that has seen SPCX surge 40% in the last three months. Image Source: Zacks Investment Research SpaceX reported Q3 earnings of $0.35 per share, crushing the Zacks Consensus Estimate of $0.10 by 250%. Revenue soared 161% year over year to $14.57 billion, easily surpassing expectations of $12.53 billion by more than 16%. Notably, SpaceX generated $4.4 billion in net income, reversing a $1.1 billion loss in the prior-year quarter. Growth was particularly impressive in the company's Super Intelligence (SI) segment, where revenue reached $7.56 billion, supported by accelerating demand for AI computing infrastructure. Additionally, SpaceX's Connectivity division, which includes Starlink, its satellite-internet network, generated $5.25 billion in revenue as consumer subscribers climbed to 13.6 million. Image Source: Zacks Investment Research Perhaps most encouraging, SpaceX reiterated its goal of reaching $100 billion in annual recurring revenue (ARR) by the end of 2026, with Musk projecting an extraordinary $500 billion to $1 trillion in ARR by the end of 2027. Furthermore, SpaceX issued bullish Q1 2027 revenue guidance of $33 billion to $37 billion, far exceeding Wall Street expectations of roughly $22 billion. These ambitious projections reflect growing confidence in the company's ability to monetize AI infrastructure investments. Much of this projected growth is expected to come from expanding AI cloud infrastructure agreements with enterprise customers, along with increasing adoption of SpaceX's Grok AI applications and the recently acquired Cursor coding platform. Meanwhile, Starlink provides another recurring revenue stream through its 13.6 million consumer subscribers and growing enterprise and government partnerships, including customers such as United Airlines UAL), Carnival Corporation CCL), Maersk AMKBY), and Deere and Company DE). Investor enthusiasm was further bolstered by Musk's acknowledgment that SpaceX and Tesla have established special committees to explore a potential merger. Although a deal remains uncertain, combining the two companies could create unprecedented synergies across AI, robotics, satellite communications, and autonomous technologies. SpaceX has already demonstrated its technological synergies with Tesla, helping the EV leader develop the rocket-inspired thrusters featured in Tesla's recently unveiled Roadster, which showcased the car's ability to briefly fly and perform midair stunts. Although SPCX is still more than 25% from its all-time high of $225 a share, the recent move above its 50-day simple moving average of roughly $147 a share suggests improving technical momentum and the potential for a continued breakout. More intriguingly, the Average Zacks Price Target for SPCX is currently at $227 a share based on short-term price targets offered by 36 analysts. It's also noteworthy that SpaceX currently has a favorable average brokerage recommendation (ABR) of 1.78 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the recommendations given by 41 brokerage firms. Image Source: Zacks Investment Research Despite its lofty valuation and aggressive capital spending, SpaceX's remarkable growth trajectory is becoming increasingly difficult to ignore. With revenue accelerating, profitability improving, and an expanding AI infrastructure business, the company appears increasingly capable of growing into its premium valuation. SpaceX currently sports a Zacks Rank #2 (Buy), making SPCX an attractive growth stock to consider even after its post-earnings surge, although investors should remain mindful of the substantial execution risks surrounding its ambitious growth projections. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Space Exploration Technologies Corp. (SPCX) : Free Stock Analysis Report Carnival Corporation (CCL) : Free Stock Analysis Report United Airlines Holdings Inc (UAL) : Free Stock Analysis Report Deere & Company (DE) : Free Stock Analysis Report Tesla, Inc. (TSLA) : Free Stock Analysis Report A.P. Moller-Maersk (AMKBY) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For questions about this article or underlying research, email [email protected]. Carnival Corporation (CCL) reported record revenue and net income for its fiscal third quarter, management said on its September 29, 2026 call. Alongside those records, the cruise company held $25.2 billion of debt and lease obligations at the end of August, nearly matching the $27.6 billion of revenue it took in over the past twelve months. While records are welcome, a business carrying almost a full year of sales in debt and leases gives investors a different metric to track. So is Carnival's debt at least getting smaller? Carnival Has Cut Its Debt Three Years Running Yes, and the reduction has been steady. Carnival held $32.6 billion in total debt and lease obligations at the end of August 2023, and that balance was lower at the end of each August since. Management said on the call that total debt, excluding leases, has fallen below $24 billion, compared to a peak of $36 billion in 2023. During the fiscal third quarter, Carnival used cash on hand to redeem $500 million of 7% notes, which management called among its highest-cost debt. These cuts have not closed the gap with the broader market. Carnival's $25.2 billion of debt and leases equals 68.2% of its market value, against 19.7% for the S&P 500. One worrying number matters most when Carnival Corporation is a large share of what you own. See how to protect a concentrated position. What Carnival's Debt Means For Shareholders Carrying this debt means Carnival must divide its cash three ways: among lenders, ships, and the shareholders themselves. Management said spending on its existing fleet, outside new ships, is $2.4 billion for 2026, and the company expects those costs to run somewhat higher for the next few years. For fiscal 2026, Carnival also expects to return nearly $2 billion to shareholders through buybacks and its dividend. Management said Carnival expects to earn enough to invest in the business, lower its debt and return capital at the same time. The share price likely reflects some of that risk already. Carnival trades at 11.8 times earnings, against 23.0 for the S&P 500. Historically, the stock has also experienced steeper declines than the index during past market shocks. Amid the 2022 inflation shock, Carnival dropped 70% from peak to low, while the S&P 500 fell 24%. Carnival Is Already Half Booked For 2027 On the call, management said 2027 is already half booked, with both occupancy and pricing reaching record levels. Customer deposits, the money guests pay before they sail, reached a third-quarter record of about $7.6 billion, up about 7%, management said. Meanwhile, Carnival's free cash flow, the cash remaining after ship expenditures, rose to $3.18 billion over the past twelve months from $2.91 billion a year earlier. Bookings did encounter a challenge. Management said booking disruptions earlier in 2026 weighed heavily on bookings for the first quarter of 2027, though it added that those bookings have rebounded meaningfully over the past three months. This positions the debt as a risk to monitor rather than an alarm: the balance is shrinking, and bookings for 2027 are strong so far. A slower pace of repayment while fleet spending rises would make it more worrying. Carnival's total debt is the figure to watch when the company reports its fiscal fourth quarter, expected on or around December 18, 2026. Is Too Much Of Your Wealth Riding On One Stock? One number was enough to change how Carnival Corporation looks to its holders. When one position grows into a large part of your wealth, a sharp fall can hurt your whole plan, and selling to spread the money out can bring a large tax bill. Our partner advisory firm offers a free strategy review of ways to protect a concentrated position and unwind it with less tax. Request A Free Strategy Review Spot an error or want more like this? Tell us in 10 seconds.

- Carnival Corporation reported its fiscal third-quarter 2026 results, with revenue rising to US$8.44 billion and net income reaching a record US$1.92 billion, alongside continued share repurchases totaling US$1.20 billion since March. - Record customer deposits and management's comments about booked occupancy and pricing at record levels point to particularly strong underlying demand for Carnival's cruises. - Next, we'll examine how Carnival's record quarterly earnings and robust forward bookings shape the investment narrative analysts outlined earlier. Outshine the giants: these 19 early-stage AI stocks could fund your retirement. To own Carnival, you need to believe that cruising can keep attracting strong demand while the company manages its heavy debt and ongoing fleet investment needs. The latest quarter's record US$8.44 billion in revenue and US$1.92 billion in net income support the demand side, but they do not remove the near term risk that high leverage and refinancing obligations could weigh on flexibility if conditions turn less favorable. The most relevant recent development here is Carnival's completion of a US$1.20 billion share buyback since March, retiring about 3.27% of its share count. This capital return comes alongside record deposits and strong forward bookings, and it ties directly into the key catalyst of improving earnings power per share, while also highlighting the trade off between rewarding shareholders today and preserving cash for debt reduction and fleet renewal. Yet despite these strong headlines, investors should be aware that Carnival's sizeable debt still leaves it exposed if... Read the full narrative on Carnival (it's free!) Carnival's narrative projects $30.6 billion revenue and $4.0 billion earnings by 2029. This requires 3.5% yearly revenue growth and about a $0.9 billion earnings increase from $3.1 billion today. Uncover how Carnival's forecasts yield a $33.89 fair value, a 28% upside to its current price. While consensus focuses on strong bookings, the most cautious analysts were assuming only about 3 percent annual revenue growth and US$3.7 billion in 2029 earnings, so this latest quarter could eventually shift how you and they weigh climate regulation, debt and future demand for cruising. Explore 7 other fair value estimates on Carnival - why the stock might be worth just $28.70! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. - A great starting point for your Carnival research is our analysis highlighting 5 key rewards and 2 important warning signs that could impact your investment decision. - Our free Carnival research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Carnival's overall financial health at a glance. Don't miss your shot at the next 10-bagger. Our latest stock picks just dropped: - The future of work is here. Discover the 91 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. - We've uncovered the 8 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. - Capitalize on the AI infrastructure supercycle with our selection of the 92 best 'picks and shovels' of the AI gold rush converting record-breaking demand into massive cash flow. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include CCL. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Carnival Corporation Ltd. CCL reported better-than-expected third-quarter fiscal 2026 results on Sept. 29, with adjusted earnings and revenues surpassing the Zacks Consensus Estimate by 5.1% and 0.9%, respectively. Revenues increased year over year, while adjusted earnings remained flat. Shares of Carnival have gained 18.1% since the earnings release, following the better-than-expected results and an increase in fiscal 2026 adjusted earnings guidance. Carnival reported adjusted earnings per share (EPS) of $1.43, unchanged from the prior-year quarter, while revenues of $8.44 billion increased 3.5% year over year. Passenger ticket revenues rose 1.8%, while onboard and other revenues increased 6.7%. Constant-currency net yields grew 2.4%, supported by strong close-in demand and onboard spending. Adjusted EBITDA totaled $2.99 billion, unchanged year over year but $110 million above June guidance. Furthermore, Carnival raised its fiscal 2026 adjusted EPS guidance to $2.24 (compared with the prior expectation of $2.22) and expects adjusted EBITDA of approximately $7.14 billion (compared with the earlier projection of $7.11 billion). The company also increased its constant-currency net yield growth outlook to approximately 2.3%. (Read more: Carnival Q3 Earnings Beat Estimates on Record Revenues & Net Yields) Shares of Carnival have declined 14.4% year to date (YTD), underperforming the Zacks Leisure and Recreation Services industry, the broader Zacks Consumer Discretionary sector and the S&P 500 Index, as shown in the chart below. Image Source: Zacks Investment Research With record bookings, destination expansion and operating efficiencies supporting its outlook, does CCL offer further upside following its post-earnings rally? Let's assess whether investors should buy, sell or hold the stock. Approximately half of fiscal 2027 is already booked, with advance occupancy and pricing at record levels. Customer deposits reached a fiscal third-quarter record of $7.64 billion, increasing approximately 7% year over year despite broadly flat capacity over the next 12 months. Booking momentum extends into fiscal 2028, with occupancy and pricing ahead of the comparable prior-year position. Reservations are also being secured further ahead of departure. With fiscal 2027 capacity expected to increase 0.5% year over year, Carnival is focused on generating higher revenues and returns from its existing fleet through pricing, onboard spending and disciplined booking management. Celebration Key welcomed nearly 2.5 million guests during its first year and is expected to receive approximately 3.5 million in fiscal 2027 following the opening of its second pier. The number of ships calling at the destination is expected to rise to 31 from 26, with access expanding across additional Carnival brands. Carnival is also pairing Celebration Key with RelaxAway, Half Moon Cay on more itineraries. In fiscal 2027, 35% of Carnival Cruise Line's Caribbean capacity is expected to feature both destinations on the same cruise. These investments broaden its exclusive destination offering and support efforts to differentiate itineraries and increase returns from existing ships. Carnival's fuel consumption per available lower berth day has declined 26% since 2019, representing nearly $750 million in savings at the fuel prices used in September guidance. Sourcing initiatives, technology investments and operating efficiencies are also supporting cost discipline. Total debt declined to $23.91 billion at Aug. 31, 2026, from $26.64 billion at the end of fiscal 2025. During the quarter, Carnival redeemed $500 million of 7% notes and received an investment-grade rating from a second credit-rating agency, marking further progress in strengthening its financial position. Carnival repurchased approximately 45 million shares for nearly $1.2 billion and paid $618 million in year-to-date dividends. Repurchases and expected full-year dividend payments together represent nearly $2 billion in shareholder returns. The company continues to expect year-over-year improvement in its balance sheet and leverage metrics while funding business investments and returning capital to its shareholders. Although Carnival, Royal Caribbean Cruises Ltd. RCL and Norwegian Cruise Line Holdings Ltd. NCLH compete in the cruise industry, their growth priorities differ. Carnival emphasizes higher revenues and returns from its existing fleet through measured capacity growth, booking management and exclusive destinations. Royal Caribbean combines fleet expansion with new destination experiences, loyalty initiatives and digital engagement. Norwegian Cruise is working to rebuild demand and improve advance bookings through sharper marketing and a revised pricing approach at its Norwegian brand. Royal Caribbean reported encouraging fiscal 2027 booking trends and record pricing while projecting 6.6% capacity growth in fiscal 2026. Its expanding vacation offering and cross-brand loyalty programs support a strategy combining additional capacity with greater guest engagement. Norwegian Cruise faces a more challenging near-term revenue outlook, with advance bookings below its optimal level and constant-currency net yields expected to decline approximately 5% in 2026. Its "baseloading" approach establishes more competitive fares earlier to build reservations and reduce exposure to close-in discounting, while Great Stirrup Cay investments broaden its destination offering. Carnival stock is currently trading at a discount. CCL is currently trading at a forward 12-month price-to-earnings (P/E) multiple of 10.41, well below the industry average of 15.92. Other industry players, such as Royal Caribbean and Norwegian Cruise, have P/E ratios of 14.42 and 10.49, respectively. Image Source: Zacks Investment Research The Zacks Consensus Estimate for CCL's fiscal 2026 and 2027 earnings implies a year-over-year uptick of 0.4% and 13.2%, respectively. The EPS estimates for fiscal 2026 have increased in the past 30 days. Image Source: Zacks Investment Research Fuel costs remain a significant earnings headwind. In the fiscal third quarter, fuel expense increased to $615 million from $451 million a year earlier, while fuel cost per metric ton consumed, excluding emission allowances, rose to $826 from $607. Higher fuel prices reduced the updated full-year earnings outlook by 11 cents per share relative to June assumptions, absorbing much of the benefit from stronger operations. Carnival continues to favor lower fuel consumption over financial hedging, leaving profitability exposed to price swings. The fiscal 2027 booking outlook is expected to vary across quarters. Record booked occupancy and pricing are concentrated in the second through fourth quarters. Although first-quarter fiscal 2027 bookings have recovered meaningfully, Carnival expects residual effects from the spring booking disruption to affect those sailings. Competitive capacity additions in the Caribbean present another challenge. Carnival acknowledged that the region faces pressure from substantial industry supply growth. Meanwhile, its new loyalty program creates temporary revenue-recognition headwinds. The program is expected to be cash-flow positive from launch, but revenue deferrals are expected to reduce fourth-quarter fiscal 2026 yields by 0.6 percentage points, with an additional 0.4-point impact for fiscal 2027. Carnival's record advance bookings, strong pricing and expanding private destinations support a constructive fundamental outlook. Higher fiscal 2026 guidance, upward earnings estimate revisions, continued debt reduction and a valuation discount to the industry further strengthen its investment appeal. However, CCL's 18.1% post-earnings rally warrants a measured approach to new positions. Elevated fuel costs, residual booking pressure on early-2027 sailings and substantial Caribbean capacity additions likely temper the near-term earnings outlook. Against this backdrop, existing shareholders may prefer to retain this Zacks Rank #3 (Hold) stock, while new investors could wait for a more attractive entry point. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report Royal Caribbean Cruises Ltd. (RCL) : Free Stock Analysis Report Norwegian Cruise Line Holdings Ltd. (NCLH) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

- Interested in Carnival Corporation? Here are five stocks we like better. - Carnival posted record quarterly revenue and net income as 2027 bookings reached record occupancy and pricing levels. - CarMax beat fiscal second-quarter expectations as vehicle sales rose and profitability improved sharply from a year earlier. - Carnival and CarMax still face company-specific and macroeconomic headwinds, but their results show pockets of resilience in the consumer discretionary sector. It's been a challenging year for consumer discretionary stocks. Through nine months of 2026, they have performed the worst among the S&P 500's 11 sectors, posting a year-to-date (YTD) loss of nearly 9%. But on Tuesday, Sept. 29, strong earnings from two companies at opposite ends of the consumer cyclical spectrum provided investors with a glimmer of hope that a late-year turnaround could be in the cards. → AST SpaceMobile's BlueBird Progress Comes With Several Risks Still Unresolved When purchasing power is eroded, the consumer discretionary sector is among the most likely to feel that fallout. Such is the case this year, as the Trump administration's tariff policies have resulted in some clear winners and losers. With inflation remaining elevated, the Consumer Price Index (CPI) reading remains above the Federal Reserve's 2% target. Much of that has been driven by surging energy prices amid the war in Iran. → McCormick Stock Trades Cheap, Offers Dividend Growth and Unilever Deal Upside But when you drill down into the numbers, it's evident that consumers' budgets are also under pressure when it comes to non-essential purchases, which don't command spending like sectors with inelastic demand, including consumer staples, healthcare, and utilities. According to the U.S. Bureau of Labor Statistics, August's headline inflation was 3.4% year over year. But the CPI report also showed that food away from home increased 3.4%, apparel increased 3.6%, and airfare increased 23.4% from a year earlier. → Target's Holiday Blitz: Slashing Prices to Capture Market Share However, for the following two companies, many of those challenges—which weighed heavily on their respective stock performances earlier in the year—could be in the rearview mirror. Cruise prices have been trending downward amid pockets of softer near-term demand. But while some major cruise lines are offering deals to get passengers on board, such as select $80-per-night fares, those companies are maintaining margins through increased add-ons like shore excursions, beverage and dining packages, WiFi connectivity, and spa and wellness services. That materialized when Carnival (NYSE: CCL) reported strong Q3 earnings on Sept. 29, resulting in shares climbing about 13% on the day. The company—which owns and operates a portfolio including Carnival Cruise Line, Princess Cruises, Holland America Line, Seabourn, Cunard, P&O Cruises, P&O Cruises Australia, AIDA Cruises, and Costa Cruises—beat on the top and bottom lines. Earnings per share (EPS) of $1.43 topped the consensus estimate of $1.35, while revenue of $8.44 billion surpassed analysts' expectations of $8.39 billion. The earnings beat extended Carnival's streak of quarterly EPS beats dating back to Q4 2022, while the revenue beat was its second in three quarters. Quarterly revenue and net income both hit record levels. In his comments on the earnings call, CEO Josh Weinstein highlighted that improved booking trends that began in Q2 continued throughout Q3. Carnival also noted growth opportunities from its destination portfolio—particularly Celebration Key, which is expected to welcome approximately 3.5 million guests next year as more ships and brands begin calling there. The company is also increasing its exposure to Europe, particularly Northern Europe; Europe as a whole will tie the Caribbean as its largest deployment region in 2027. Management expects residual booking disruption to weigh on the first quarter of 2027, while the new Carnival Rewards program will create accounting-related yield headwinds through 2027 before turning positive in 2028. Higher fuel prices also remain a headwind, although Carnival plans to continue relying on reductions in fuel consumption. Weinstein added that Carnival is already turning its attention to next year, with 2027 "already half booked with both occupancy and pricing at record levels." Of the 28 analysts currently covering CCL, 22 assign it a Buy rating. Overall, it receives a consensus Moderate Buy rating alongside an average 12-month price target of $34.14—welcome news after shareholders endured a nearly 36% loss from the stock's YTD high on Feb. 6 through its YTD low on Sept. 24 Shares of used vehicle retailer CarMax (NYSE: KMX) had already been undergoing a resurgence in the lead-up to its Q2 fiscal year 2027 earnings report on Sept. 29. A double beat added fuel to that fire, pushing the stock about 5% higher on the day and bringing its gain to more than 63% after hitting a YTD low on May 19. Used car prices remain historically elevated. But according to data from the Federal Reserve Bank of St. Louis, they have come down 16.56% since their all-time high in February 2022. August's CPI report showed that trend continuing, with used car prices undergoing deflation and having fallen 2.3% year over year (YOY). That, among other factors, has helped CarMax bounce back after losing more than 76% from its five-year high before this year's rally gained traction. The company's vehicle sales accelerated in the quarter, and earnings improved sharply from a year earlier. That resulted in EPS of $1.16, easily topping the consensus estimate of 73 cents, and revenue of $7.88 billion exceeding analysts' expectations of $7.09 billion. The earnings beat was CarMax's sixth in seven quarters. In his comments on the earnings call, CEO Keith Barr highlighted the company's 81% YOY EPS growth and YOY total vehicle sales growth of 15%. But headwinds remain. CarMax still faces pressure from vehicle affordability, interest rates and lower per-unit margins, making continued execution important. Management expects fiscal 2027 retail gross profit per unit to decline by less than previously projected, but still anticipates YOY declines in both Q3 and Q4. That has contributed to a consensus Reduce rating and an average 12-month price target of $56.71, which is roughly in line with the stock's current price. The article "Carnival and CarMax Pop on Strong Earnings, but Challenges Remain" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

- Record Quarter: Q3 net income reached ~$2B, over $100M above June guidance, as yields rose nearly 2.5% YoY and cruise costs ex-fuel per ALBD climbed only 1.8%. - Fuel Offset: A $150M fuel price hit absorbed more than $150M of operating gains, so full-year EPS guidance rose only $0.02 to $2.24. - Forward Book: 2027 is half booked with occupancy and pricing at record levels. - Credit Upgrade: S&P moved Carnival to investment grade as total debt fell below $24B from its $36B 2023 peak, with $1.2B of buybacks done. Carnival Corporation (CCL:NYSE) posted record revenues, yields and net income in Q3 2026, then lifted full-year EPS guidance just $0.02 to $2.24 because a $150 million fuel price hit offset more than $150 million of operating improvement. The quarter itself ran ahead of June guidance on every operating line. Net income reached about $2 billion, beating the guide by more than $100 million, or $0.08 per share, while yields (net revenue per available lower berth day, or ALBD, the industry's capacity unit) rose nearly 2.5% year over year, 1.2 percentage points better than guided. Cruise costs excluding fuel per ALBD climbed only 1.8%, 100 basis points better than the guide. That outperformance did not reach the full-year number intact. Operations added $0.12 per share to the guide, $0.08 of it from yields, and buybacks added $0.01, but higher fuel prices took back $0.11. CEO Josh Weinstein addressed the fuel swing directly on the Q3 earnings call: "Yes, fuel can be a volatile input cost with a track record of prices going up and down. But amidst that noise, let's not lose sight of our underlying operational improvement." The evidence sits in consumption. Fuel use per ALBD has fallen 26% since 2019, which CFO David Bernstein valued at nearly $750 million in savings at September guidance fuel prices, and Carnival still declines to hedge, preferring to burn less over paying counterparties to smooth prices. The forward book gives that case its footing. Carnival is half booked for 2027 with occupancy and pricing both at record levels, and customer deposits hit a third-quarter record of about $7.6 billion, up about 7% on flat capacity over the next 12 months. Two drags sit inside that book. Carnival Rewards, the loyalty program Carnival Cruise Line launched September 1, defers a slice of revenue and weighs on yields until 2028, and the first quarter of 2027 still carries residual damage from this spring's booking disruption. Cash flow runs the other way. Carnival has repurchased $1.2 billion of stock, or 45 million shares, in six months, and cut total debt below $24 billion from a $36 billion peak in 2023. S&P's upgrade made it the second agency to rate Carnival investment grade and released the collateral, leaving no secured debt. Carnival stock closed at $25 on September 30, down 2% on the day, one session after a quarter that beat guidance on yields and costs. The 26 analyst price targets on Carnival stock average $34 as of September 30, or 139% of the $25 close, with a low of $29 and a high of $43. Ratings lean the same way, with 24 Buy or Outperform calls against 5 Holds and no Sells, and TIKR's $43 mid-case target matches the top of the Street's range. TIKR's mid-case model values Carnival stock at $43 by November 2030, implying 76% total return from the current price of $25, or 15% annualized over 4.2 years. A 15% annualized return is a fast clip for a cruise operator adding almost no capacity, so pricing and cost control, not new ships, carry the gain. The Q3 call supports that path: Carnival beat June guidance on yields by 1.2 percentage points and on costs by 100 basis points, and 2027 is already half booked at record occupancy and pricing. TIKR lets you forecast the future price of any stock in less than a minute. Just enter a few assumptions into TIKR's valuation model and see what CCL stock could be worth. Start from Wall Street consensus estimates, or adjust the inputs to reflect your own view of the business. It's free to use. Value Carnival Corporation for free→

Carnival Corporation Ltd. CCL used its third-quarter 2026 earnings call to emphasize strengthening demand, improved operating execution and a firmer booking position for 2027 despite higher fuel costs. Management's focus extended beyond the quarterly beat to pricing, capacity discipline, destination investments and cost control, while flagging a different setup for the first quarter of 2027. CEO and director Josh Weinstein said that booking momentum improved through the quarter, with June marking an inflection point, followed by further acceleration in July and August. For 2027, Carnival is already about half booked, with occupancy and pricing above the prior-year levels and at records. Weinstein said that 2028 is also running at higher occupancy and prices. Customer deposits reached a third-quarter record of $7.6 billion, up roughly 7% despite flat capacity growth over the next 12 months, supporting management's pricing-focused booking strategy. CFO and chief accounting officer David Bernstein said that third-quarter 2026 adjusted net income exceeded the June guidance by more than $100 million, or $0.08 per share, with revenues being the largest contributor. Full-year constant-currency net yield growth is expected to be 2.3%, more than half a percentage point above the June guidance. Fourth-quarter growth is projected at 1.7%. Bernstein said that operational improvements of more than $150 million are offsetting a similar impact from higher fuel prices. Adjusted cruise costs, excluding fuel per ALBD, are expected to rise 2.2% in 2026. Weinstein said that the 2027 capacity is expected to inch up 0.5%, keeping the emphasis on generating more earnings and returns from the existing fleet. A Wells Fargo analyst asked whether the stronger balance sheet could support faster growth. Weinstein said that capacity is largely fixed for the next half decade, though Carnival would consider unique opportunities. He added that longer-term ship additions should remain within the company's one-to-two-ship-per-year framework unless management decides to change that approach. Weinstein said that Europe will tie the Caribbean as Carnival's largest deployment region in 2027, with each representing 34% of capacity. Northern Europe remains a particular area of emphasis. A Citi analyst asked about pressure from Caribbean capacity growth. Weinstein acknowledged the pressure but reiterated Carnival's commitment to the region and its strategy of differentiating through private destinations. Celebration Key is expected to welcome 3.5 million guests next year, with 31 ships calling versus 26 this year. RelaxAway and other upgraded destinations also remain central to deployment strategy. Management repeatedly separated the first quarter of 2027 from the rest of the year. Weinstein said that spring booking disruption carried into early 2027, especially for long-haul and exotic itineraries. A Wells Fargo analyst asked whether late-2026 yield trends should extend into the first quarter. Weinstein declined to provide any quarterly guidance but said that management feels better about 2027 beyond the first quarter. Bernstein added that Carnival Rewards will create a 0.4-percentage-point accounting headwind to 2027 yields before the program's accounting impact turns positive in 2028. Bernstein said that management expects continued sourcing savings and operating efficiencies in 2027, with no unusually significant cost item currently standing out. Carnival has repurchased $1.2 billion in stock and expects combined buybacks and dividends to return $2 billion to shareholders in 2026. Total debt has fallen below $24 billion. For the quarter under review, adjusted earnings per share of $1.43 beat the Zacks Consensus Estimate of $1.36. Revenues of $8.44 billion surpassed the consensus estimate of $8.36 billion, providing the context for management's execution narrative. Carnival Corporation price-consensus-eps-surprise-chart | Carnival Corporation Quote Weinstein emphasized demand generation, disciplined booking management, selective investment and efficiency as the main levers for improving earnings and returns. He also said that some PROPEL opportunities are being captured earlier than expected. Management remained constructive on 2027 overall while withholding detailed guidance until December. The clearest caution centered on the first quarter, with later periods supported by stronger booked pricing and occupancy. CCL currently carries a Zacks Rank #3 (Hold), with a Value Score of A, a Growth Score of C, a Momentum Score of F and a VGM Score of B. Higher Style Scores are more favorable under the Zacks framework. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. The scores point to stronger value characteristics and a favorable composite VGM profile, alongside weaker momentum and middle-range growth characteristics. The Zacks Rank can change as earnings estimates are revised after the newly reported results. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Image source: The Motley Fool. Tue, Sep. 29, 2026 - CEO - Josh Weinstein - CFO - David Bernstein - Chair - Micky Arison - Senior Vice President, Investor Relations - Beth Roberts Operator: Greetings, and welcome to the Carnival Corporation Q3 2026 Earnings Results. [Operator Instructions] As a reminder, this conference is being recorded. It's now my pleasure to introduce your host, Beth Roberts, Senior Vice President, Investor Relations. Thank you, Beth. Please go ahead. Beth Roberts: Thank you. Good morning, and welcome to our third quarter 2026 earnings conference call. I'm joined today by our CEO, Josh Weinstein; our CFO, David Bernstein; and remotely, our Chair, Micky Arison. Before we begin, please note that some of our remarks on this call will be forward-looking. Therefore, I will refer you to today's press release and our filings with the SEC for additional information on factors and risks that could cause actual results to differ from our expectations. We'll be referencing certain non-GAAP financial measures, including yields, cruise costs without fuel, EBITDA, net income and related statistics for all which are on a net basis or adjusted as defined, unless otherwise stated. A reconciliation to U.S. GAAP is included in our earnings press release and our investor presentation. References to ticket prices, yields and cruise costs without fuel are on constant currency unless we note otherwise. Please visit our corporate website where our earnings press release and investor presentation can be found. With that, I'd like to turn the call over to Josh. Josh Weinstein: Thanks, Beth, and good morning, everyone. Once again, we closed out another excellent quarter with revenues, yields and reported net income all reaching new highs, while customer deposits once again set a record. Strong execution delivered approximately $2 billion to the bottom line, exceeding our guidance by $100 million with both revenue and costs contributing to the outperformance. On the revenue side, yields increased nearly 2.5%, more than 1 point better than expected. The improvement in booking trends we highlighted on our last call continued to build throughout the quarter with better closing demand translating into higher revenues. That momentum also enabled us to raise our yield expectations for the fourth quarter. And on the cost side, our teams continued to find opportunities to operate more efficiently. Excluding fuel, unit costs came in 1 point better than guidance for the quarter. And to date, we have improved our full year expectations by more than 1 point even after absorbing continued pressure from higher-than-expected inflation. Fuel consumption also came in 3 points better than expected as our teams continue to find ways to use less, which is better for the environment, better for our bottom line and ultimately, the best way to manage fuel costs. Taken together, we've generated more than $150 million of operational improvement since our June guidance, fully offsetting the impact of higher fuel prices that we now expect. Yes, fuel can be a volatile input cost with a track record of prices going up and down. But amidst that noise, let's not lose sight of our underlying operational improvement. What matters most over the long term is our ability to continually improve the actual performance of the business, generating more demand, managing our booking curve for maximum revenue, operating more efficiently, and ultimately producing more earnings and higher returns. And while it's still early, we are beginning to capture opportunities embedded in our PROPEL targets sooner than expected, leveraging our unmatched scale, sharpening commercial execution, investing where we generate outsized returns, and advancing technology to enhance revenue and control costs. This includes putting AI to work across our commercial systems to help our teams make better decisions and provide more personalized experiences for our guests, automating more of how we operate shoreside and identifying new efficiencies in how we manage our vessels. With 2026 largely on the books, our attention is turning to 2027 and beyond. For full year 2027, we are already half booked with both occupancy and pricing at record levels. Bookings taken over our third quarter solidified this position as we saw very healthy increases compared to last year's levels. And while the booking disruption we experienced this spring extended into the first quarter of 2027, Q1 bookings have also rebounded meaningfully over the past 3 months, reinforcing our view that the impact is temporary. Demand remains broad based, including very healthy demand for our peak summer European deployments. 2028 is also off to an excellent start at higher occupancy and even higher prices year-over-year, and our booking curve is further out than it has ever been at this point in the year. Customer deposits tell a similar story. They reached a third quarter record of approximately $7.6 billion, up about 7% despite flat capacity growth over the next 12 months. With demand continuing to grow well ahead of our intentionally measured capacity growth, we have an opportunity to keep managing the booking curve for price, and that is exactly what our strategy is designed to do, drive more earnings and higher returns from our existing asset base with relentless focus and discipline. One of the most visible examples is our destination strategy. Celebration Key recently marked its first anniversary, having welcomed almost 2.5 million guests in its first year alone. The guest response has been exceptional. Celebration Key is resonating with our loyal guests, giving them another compelling reason to sail with us again while attracting new-to-cruise guests as well. And we are only just beginning to realize its potential. With the second pier now open, Celebration Key is expected to welcome approximately 3.5 million guests next year with 31 ships calling versus 26 this year. Its reach is also expanding beyond Carnival Cruise Line with Princess joining next month, followed by select calls from AIDA and Costa late next year. And Celebration Key is just one part of what is becoming an increasingly differentiated destination portfolio. Our recently expanded experiences at RelaxAway, Half Moon Cay and Isla Tropicale Roatán have already welcomed approximately 250,000 guests each with very positive guest response. We have made these amazing beach experiences even better and available to millions more guests. We can now pair the idyllic natural beauty of RelaxAway, long one of our highest-rated beach experiences, with the high energy experience of Celebration Key, giving our guests 2 completely different beach experiences on the same itinerary and further differentiating what only we can offer. In fact, next year, 35% of Carnival Cruise Line's Caribbean capacity will feature itineraries visiting both of these incredible destinations on the same cruise. And there is more to come as we continue to develop our destination footprint, differentiate the vacation experiences we offer and make our existing fleet even more valuable. We are applying the same return-focused mindset across the rest of the business. We're finding new ways to deepen guest loyalty and increase lifetime value. In the year following Carnival Cruise Line's June 2025 announcement of its new loyalty program, co-branded credit card issuances increased 20% even before the new benefits took effect. And since the program went live September 1, issuances have accelerated significantly, more than tripling from pre-announcement levels. And while the program has only been live for a few weeks, thousands of members have already redeemed tens of millions of points on everything from a drink on board to a suite on Carnival Celebration, exactly the kind of flexibility and choice the new program was designed to provide. We're also continuing to invest selectively in our fleet. Carnival Festivale enters service in the Caribbean in May in time for the summer season and begins contributing to our results in the second half of the year. Our mid-life modernization programs continue to progress with additional vessels planned for AIDA and Holland America next year. We will also complete a major upgrade of Cunard's flagship Queen Mary 2. As the world's only ocean liner providing regular transatlantic service, it is a one-of-a-kind asset, and our investment is designed to ensure it continues to generate attractive returns for decades to come. And we continue to optimize deployment toward markets where we see the greatest opportunity. Next year, for example, we are leaning even further into our successful Northern European deployments where guest interest continues to grow in coolcations, cooler weather destinations and outdoor activities like hiking, exploring the fjords of Norway and enjoying the Northern Lights. Importantly, we are doing this in the context of relatively flat overall capacity growth, meaning that we are actively shifting our deployment mix toward the opportunities we find most attractive. As a result, in 2027, Europe will, for the first time, tie with the Caribbean as our largest deployment region, each representing 34% of our mix. Of course, the Caribbean remains an important part of our strategy and will benefit from the continued expansion of our Paradise Collection portfolio even as we diversify our footprint more globally. And our diversified footprint is further strengthened by our industry-leading presence in Alaska, the ultimate coolcation. Our advantage there extends beyond cruising to our integrated land and sea experiences supported by thousands of hotel and lodge rooms, 20 glass-domed railcars, and the largest fleet of motor coaches in all of Alaska. Together, these assets give our guests unparalleled access to experience the extraordinary natural beauty, culture, and wildlife of the Great Land in ways that are difficult to replicate. Taking a step back, these are all different initiatives across different brands and geographies, but the strategy behind them is consistent, create differentiated demand, improve revenue generation and drive attractive returns on the capital we deploy. And clearly, those efforts are showing up in our financial results. Despite the significant fuel price headwind this year, we expect to finish 2026 with even more brands generating mid-teens or higher returns on invested capital than last year. That is meaningful progress, and we still see considerable runway ahead with each of our brands on a path toward higher returns. The consistency of our performance is also translating into increasingly durable cash flow, giving us the ability to invest in the business, strengthen the balance sheet, and return capital to shareholders at the same time. And yes, we are doing all 3. We continue to invest in the highest return opportunities across our brands and destinations. We continue to reduce debt and strengthen our financial position. And just 6 months into our share repurchase program, we have already bought back about $1.2 billion of stock alongside our ongoing dividend. That balance is important. Our objective is not simply to grow. It is to grow earnings and returns in a disciplined way while increasing the amount of cash we can return to shareholders over time. And importantly, we have the best team in all of Travel and Leisure making it happen. None of what we have accomplished or what lies ahead would be possible without the dedication of our more than 160,000 team members, both ship and shore. I want to thank them for everything they do every day to deliver unforgettable happiness to our guests by providing extraordinary cruise vacations while honoring the integrity of every place we visit, life we touch, and ocean we sail. I also want to thank our loyal guests, our investors, our travel agent partners, our destination and shipbuilding partners, and all of our stakeholders for their continued support. We have tremendous momentum, an incredible team, and significant opportunities still ahead of us. With that, I'll turn the call over to David to walk you through the quarter and our guidance in more detail. David Bernstein: Thank you, Josh. I'll begin with our third quarter results, then cover our updated full year guidance and several considerations for 2027 before closing with capital allocation. We delivered record revenues and yields with third quarter net income exceeding our June guidance by over $100 million or $0.08 per share. The outperformance versus June guidance was driven by 3 factors. Revenue was the primary driver for our outperformance, contributing $0.05 per share. Yields increased nearly 2.5% year-over-year on top of almost 5% growth in last year's third quarter. Strong close-in demand and robust onboard spending drove yields 1.2 percentage points above June guidance. Second, continued cost discipline drove additional upside. Cruise costs, excluding fuel per ALBD, increased only 1.8% year-over-year, 100 basis points better than June guidance, contributing $0.02 per share. Importantly, nearly all the third quarter cruise cost savings flow through to our full year September guidance. Third, the remaining $0.01 per share of favorability came from further improvements in fuel consumption, where we delivered a nearly 4% year-over-year reduction on top of the over 5% reduction in last year's third quarter as well as the full year 2025. Now turning to our full year September guidance. We expect operational improvement of more than $150 million in net income compared to June guidance, driven by improvements in yields, cruise costs, excluding fuel per ALBD and fuel consumption, overcoming $150 million impact from increased fuel prices. Our September guidance forecasts yield growth of approximately 2.3%, which is over 0.5 point better than June guidance. We flowed through the $0.05 per share yield improvement from the third quarter and an additional $0.03 per share expected yield improvement for the fourth quarter for a total of $0.08 per share for the year. For the fourth quarter, we now expect year-over-year growth of approximately 1.7%, over 0.75 points above our implied June guidance. On a normalized basis, adjusting for the impact of the new loyalty program accounting for Carnival Cruise Line, our fourth quarter yields are expected to be up approximately 2.3%, consistent with the year-over-year growth we saw in the third quarter. Cruise costs, excluding fuel per ALBD, are now expected to be up approximately 2.2% year-over-year, better than June guidance, which includes the $0.02 per share cost savings I previously mentioned for the third quarter. On a normalized basis, adjusted cruise costs, excluding fuel per ALBD, are up approximately 1.1% after reflecting the timing of certain expenses between the years, partial year operating expenses from 2 exclusive destinations and the impact of certain elevated logistics costs as a result of the disruption from the Middle East conflict. Putting the full year September guidance together relative to June guidance, improved operating performance adds $0.12 per share, $0.08 from yields, $0.02 from cruise costs excluding fuel and $0.02 from fuel consumption and other items. Share repurchases added $0.01 per share of EPS accretion, while higher fuel prices were an $0.11 per share headwind. However, the 26% reduction in fuel consumption per ALBD since 2019 helps to mitigate the impact of the fuel price increases as we consume less fuel. The lower consumption represents savings of nearly $750 million at September guidance fuel prices. As a result, full year EPS guidance is now $2.24, up $0.02 from our previous guidance. Now a few things for you to consider for 2027. We are forecasting a capacity increase of 0.5% in 2027 compared to 2026. As Josh indicated, we are in a strong position for 2027 with both occupancy and price at record levels. This is weighted to quarters 2 through 4 since the effects of the booking disruptions earlier this year, which impacted the second half of 2026, also carried heavily into bookings for the first quarter of 2027. While booking trends for the first quarter of 2027 have improved meaningfully over the past 3 months, we still expect the first quarter to reflect residual impacts from that disruption. Of course, the team is working hard to increase demand across the board, including first quarter sailings, and this gives us confidence in our ability to continue the momentum of our multiyear yield gains. On September 1, we successfully launched Carnival Cruise Line's new loyalty program, Carnival Rewards. Our guests are already enjoying the enhanced benefits of the new program with more flexibility in how they earn and redeem rewards and more ways to get value from their relationship with Carnival. We are very confident in the benefits this program will bring to our guests and to the company over time. As I previously indicated, Carnival Rewards is expected to be cash flow positive from launch, although the timing effect of revenue recognition creates a temporary yield headwind in the fourth quarter 2026 and fiscal year 2027. Under the accounting treatment, we defer a portion of revenue equal to the value of benefits earned. As redemptions build, revenue recognized upon redemption will eventually exceed new deferrals. Until 2028, when the impact turns positive, we do expect to have accounting-driven yield headwinds. We previously explained a 0.2 point impact for the full year 2026, all of which is from the 0.6 point impact in the fourth quarter of 2026. And for full year 2027, there will be an additional 0.4 point impact. Now I'll finish with some comments on capital allocation. To date, we have opportunistically repurchased nearly $1.2 billion of stock, representing 45 million shares. We are making meaningful progress towards our PROPEL target of distributing cash to our shareholders responsibly. Combining share repurchases with our expected fiscal year dividend payout, we will be returning nearly $2 billion to shareholders. Even with that level of capital return, we expect year-over-year improvement in our balance sheet and leverage metrics, and our total debt is now below $24 billion, a far cry from our $36 billion peak in 2023. During the quarter, we also used cash on hand to redeem $500 million of 7% notes, which were among our highest cost debt instruments. Furthermore, during the quarter, S&P upgraded the company's credit rating, making it the second rating agency to assign the company an investment-grade rating. Following this upgrade, which allowed the collateral to be released, the company does not have any remaining secure debt. Our expected EBITDA of more than $7 billion provides the capacity to invest in the business, improve leverage and return capital to shareholders. Operator, we're now ready to open the call for questions. Operator: [Operator Instructions] Our first question today is coming from Robin Farley from UBS. Robin Farley: Just wanted to ask about something a little bit away from the results today, although my follow-up, I do have a question about the release. Just looking in the market, there's a transaction with an all-inclusive Caribbean resort chain that one would assume others in the industry maybe considered or looked at. I don't know if you have any thoughts you can share. Maybe it's not about that specific portfolio, but just your thoughts about synergies or would something like that make sense for Carnival or just any view on that? And then I do have a follow-up on the release. Josh Weinstein: Robin, wow, first question, not even about us. All right. So I'll just talk about us. I won't talk about somebody else's transaction. I'd say it probably sounds a little bit like a broken record here, but we are just laser-focused on improving our cruise business. We are very proudly a cruise company, and everything we do is to enhance the cruise experience for our guests. And so we -- our portfolio of 8 brands, we feel we're in a great position given the momentum we've got and the things that we've got to come to be able to improve the business on the assets that we've got. Now clearly, I'm not saying we don't have land-based assets in our portfolio. We do, but they're really ancillary to the cruise experience, things like Celebration Key, RelaxAway, Half Moon Cay, and our unmatched position in Alaska. Those are all really bolt-ons to make the cruise product even better, and they're high returning. We're focused on the returns. We're focused on the cruise business. So there you go. Robin Farley: Okay. Great. And then just for my follow-up, just the booking outlook in the release, I'm just curious if you can help clarify. It talked about '27 price and load being at record levels. It didn't say higher, and that may be fine, that may be part of the yield management strategy. But then in talking about '28, it does say higher occupancy and price. So I'm just wondering if I'm interpreting that right about 2027 that it's maybe at the same levels. Josh Weinstein: No, no, 2027 is higher. I'm sorry, yes, we're dancing on a pinhead. So sorry, '27 occupancy and price is higher, yes. Operator: Our next question today is coming from James Hardiman from Citi. James Hardiman: Congrats on a really strong and maybe even surprisingly strong quarter here. I guess my first question, I mean, it sounds like the last -- sure thing. It sounds like the last 3 months of bookings were really good for you guys, which is particularly noteworthy given the fact that the macro and the geopolitical headlines haven't really gotten any better. And I don't think airfare prices have gotten dramatically better. So maybe help us connect those 2 dots. I mean, do we think that some of this is specific to your business model where a lot of your customers are maybe closer to departure ports and so airfare doesn't matter as much, or European customers care less? We've talked about that sort of distinction in the past, Europeans to European destinations and then maybe Americans to European destinations. Or do we think there's just fatigue with all of these headlines and people are saying, "I'm going to go on my vacation, hell or high water," and we're now beginning to see that. Josh Weinstein: Yes. No, I think all of those are pretty fair points, to be honest with you. I mean, taking a step back, June was an inflection point in the booking momentum, and it was positive year-over-year, and then we saw a nice acceleration in both July and August. I think to some extent, there is a normalization of what the world is throwing at people. There is a growing change in the mentality of Americans, which is just catching up to Europeans, as we've talked about before, that vacations are sacrosanct. And they will take them in good times and in bad. If you have a job, you get a break and you need that vacation. And so we are an amazing value for people if the consumer confidence isn't great, if there is pressure from things like price of gasoline, if there's other inflation, if there's concerns about fill-in-the-blank because that's all we hear about nowadays. And we're a great value. We give a great experience, and we make it convenient for people. So we really do feel like our strategy is working. It can work in great times, and it can work in times that aren't so great, and that's what you're seeing now. James Hardiman: Got it. And then, Josh, in your prepared remarks, you talked about the fact that Europe for the first time will tie the Caribbean for the largest deployment region. It sounds like there's a bigger narrative there. I feel like I've been saying for a decade that eventually the pendulum might shift back towards Europe and at least for you guys that, that's happening. So maybe speak to what you're seeing on both sides of the Atlantic. Are you concerned about what's going on with respect to Caribbean capacity into 2027? Josh Weinstein: Well, so I'll answer a Europe question and then a Caribbean question. The Europe question is this isn't new for us. This has been a growing piece of the business and the strategy, particularly in Northern Europe, as I mentioned in my prepared remarks, which is just amazing destinations for both North Americans and Europeans. And so our brands have a great foothold there. We actually have more European sailings outside of the Med than in the Med, and we love that position. It's also longer seasonality. we can push into the shoulders more because that's what guests are looking for, which fits well. With respect to the Caribbean, I've said this in different ways. I'll say it, give me 2 options. Option #1 is no growth in the Caribbean. Option #2 is, if you look at 2027, something like 37% growth over a 3-year period. I'm going to go with option A. Option A would make my life easier, make a lot of people's lives easier. But it's not taking away from the fact that the Caribbean is an amazing part of our portfolio. And we are absolutely committed to it forever. And hence, the investments that we've made in our Paradise Collection. Carnival Cruise Line has been the leader in the Caribbean all-year sailing forever, and we expect that to continue. Does it face pressure when there's that kind of capacity coming at one time? Yes, it does. And we've seen it before, and we get through it. We just got through the third quarter of this year, yields up, I'd say, fairly nicely. We're looking at the full year up almost 3% on a normalized basis, including our Caribbean portfolio against the backdrop of a pretty volatile world. So I'd say all of that's fitting together really nicely. Operator: Next question is coming from Brandt Montour from Barclays. Brandt Montour: So back to 2027, I was just curious, Josh, if you want to kind of paint a picture on how the customer -- how your booking customer feels about booking that far out and specifically related -- relating this year kind of 6 months into Iran looking at 1 year out versus 1 year ago, 6 months into tariffs booking out to '26. Have you seen any differences there? And then which brands or which cohorts are you seeing that differential? Josh Weinstein: Yes. I won't get into specific brands and customer bases of the brands. But what I would say is every crisis is different. And certainly, this crisis was different from last year. We thought we'd have a great opportunity to lap the volatility from last year. But obviously, what happened in the spring was a much longer burn for the consumer and for just the macroeconomic backdrop. And so we did have a lot of different patterns that were coming through in the second quarter, some of which spilled over into the third quarter. And as we've been going through, it's been getting better certainly. But the impact it had on the long-haul flights, the exotic cruises, the things that we talked about that are going to have an impact in the first quarter, they're not insurmountable, but it certainly was more of a challenge than when we were thinking about last year at the same time and what it meant. At the same time, we really saw almost a double down on Europe for next year, particularly in the third quarter, which is the biggest part of the European deployment. So there was certainly a large cohort of people in the spring into the early summer that said, "Right, we're not going this year, but we are going next year." And so that bodes very well for 2027. So the flavors are always going to be different. It's our job to figure that out and the teams pivot really well, adjust their booking strategies, voyage by voyage, deployment by deployment. And like we said, we do believe that coming out of all of that, we'll still be able to experience solid yield next year. Brandt Montour: That's great. And then just a quick follow-up, maybe not so quick. But I think everybody on this call knows how to look through your release and see the core operating KPIs and how well you're doing. Obviously, EPS takes into account fuel and that's much more volatile. So I'll just sort of ask the quarterly kind of question here, but it's 6 months into this conflict and fuel kind of doing what it's doing, any change or update to the philosophy longer term or the conversation internally thinking about potentially looking at hedging at some point in the future? Josh Weinstein: Yes. Thanks for getting that out of the way, Brandt. So only when fuel is up, right? That's the only time people ask. It's a very fair question to ask because it does have the ability to reduce volatility in any given year. As we've looked at our business and we've looked at this financially as well, we do believe that, that's a short-term band-aid that sometimes pays off, sometimes it doesn't. But the reduction in the volatility to us isn't worth paying banks or counterparties to effectuate those types of trades. And that's why we have been maniacally focused on our consumption rates. And you heard some statistics from David in his prepared remarks, but the fact that our consumption rate is down 26% since 2019, 13% than just 3 years ago. That is where our focus is, and that's where we're going to actually save the money because fuel for the medium term, at least, is always going to be an input cost. And the best way you can combat the input cost is to use less of it. And so our teams have done an absolutely remarkable job of continuing to innovate, both on itineraries and the technology to really make that happen. And I couldn't be prouder of that work. It is also good for the planet, and it's tremendous for our bottom line. Operator: Next question is coming from Matthew Boss from JPMorgan. Amanda Douglas: It's Amanda Douglas on for Matt. So Josh, relative to the normalized yield growth of 2.7% expected for this year, could you speak to puts and takes to consider as we look ahead to '27, including if you see any constraints to bookings apart from the first quarter dynamics that you cited and tailwinds to consider from your destination portfolio and modernization initiatives? Josh Weinstein: Thanks for the question, Amanda. We talked about the first quarter because it does just stick out for us a little bit because of the knock-on impact of the spring volatility. I don't actually think that there's too much to talk about. I mean, clearly, we love our deployment strategy. We think the combination of our European base, the Alaska portfolio that we've got, including the land side to help. And then obviously, the Caribbean is going to remain important. And all of those have got to do their part to help us on the yield growth. And so we'll certainly talk more in December about how we think about 2027 and some of the ins and outs. But overall, we feel very good about the trajectory. Amanda Douglas: And just as a follow-up, could you also speak to the strength of onboard spending trends that you're seeing real time or any signs of pause or change in the consumers' behavior relative to 3 months ago? Josh Weinstein: Yes. No, if anything, onboard has just accelerated. So we see continued strength from the consumer. And always with an asterisk because of the way we do packages and bundles and things of that nature, you always should look at the total revenue because of how things might fall between ticket and onboard. But overall, just to reiterate, no, we haven't seen the slowdown. The onboard trajectory has been really quite strong. Operator: Next question is coming from Trey Bowers from Wells Fargo. Raymond Bowers: I'll start with kind of a macro question and pivot a little bit from yields for a second. Now that you guys are investment grade, any thoughts as we think longer term? I know maximizing ROIC investments is the priority. But with the balance sheet in such good shape, is there any thought around just trying to expand kind of the capacity growth slightly? Josh Weinstein: Yes. I mean, look, our capacity growth is pretty fixed for the next half decade. So that's where we are. If there were opportunities that came around that are one-off unique things, I'd always look at it, and that's part of the job, but I think that's where we are. Is there more opportunity as we get further into the 2030s for more ships? Yes. I still think it will fit within our 1 to 2 ship a year construct. And if we were ever going to deviate from that, certainly be something that we share with our stakeholders. Raymond Bowers: Great. And then as a follow-up, just as you guys mentioned again the Q1 cadence, is the exit rate we saw coming out of Q3 and Q4 on kind of a like-for-like yield basis, the right way to think about Q1? Or is it just given the dynamics of the timing of the wave season, is that expected to be a bit of a downtick from where we exit the year? Josh Weinstein: Yes. Sorry, we're not going to -- we're starting to deviate into guidance for 2027, which we're not going to do. I'd just note that we feel good overall about 2027, particularly as you get away from Q1 into the latter part of the year. I'm not foreshadowing anything about Q1 other than it's got a little bit of a different profile. And so we'll talk more about that in December. Operator: Next question is coming from Xian Siew from BNP Paribas. Xian Siew Hew Sam: Maybe following up a little bit on Caribbean. If we look at the capacity deployment mix, it seems like Caribbean capacity might be slightly down next year. But at the same time, you have kind of that growing private destination attendant guest mix. So I guess like maybe those 2 combined, I would think, bode well for pricing, but any thoughts on how we should think about that? Puts and takes for Caribbean? Josh Weinstein: Yes. I think you got to deconstruct it a little bit. I mean some of the decrease in our capacity is Princess is moving out and sending a ship to Japan, which is going to be great for us. But Princess is generally a premium brand. So when you pull a premium brand out, that has a different impact than others in the deployment region. But -- so there's little changes here and there. But generally speaking, for the Caribbean, we're pretty consistent in the actual underlying core capacity. And we are going to be able to flex both Celebration Key and RelaxAway because both now have their full marine infrastructure built out, which means we can maximize the marine side of those assets, which is why the throughput is going to be up nicely year-over-year for those 2 destinations. Xian Siew Hew Sam: And then we talked a little bit about pricing for '27, how bookings have been ahead. But maybe on the cost side, you've done a really good job of controlling costs. Anything we should think about in terms of costs into next year, anything different than maybe your algo or kind of the success you've been having this year? David Bernstein: There's nothing in particular that's notable for 2027. As you can see in '26, we've been working hard to reduce costs and to find ways to save money through sourcing and other means. And our operating companies have been working hard to find efficiencies in their business as well. And we'll continue to step that up and to do more in 2027. But there's nothing in particular too meaningful to drive the cost one way or the other. Operator: Next question today is coming from Patrick Scholes from Truist Securities. Charles Scholes: Could you give us a little bit more color on the 7% onboard and other revenue growth in the quarter? Specifically, within that growth, how much did you see from last year's open Celebration Key and how much was more from the actual onboard itself? And how would we -- within your 4Q net yield guide, how much would you attribute from Celebration Key and how much from the core -- ex-Celebration Key? David Bernstein: So the third quarter onboard and revenue was really broad-based across all categories, and it was also across all brands on both sides of the Atlantic. So as Josh talked about before, we are not seeing any slowdown in the strength of the consumer. I think our bundled packages are helping to contribute to the onboard revenue. We're seeing more than 50% of our revenues prebooked. So we're getting the benefit of the second wallet meaningfully onboard. And so as a result, as Josh said before, onboards have been very strong. And as far as the fourth quarter is concerned, I mean, we give guidance in total and yields. Josh mentioned to judge us on the total because of all the packages and things we offer, breaking down the 2 components isn't as meaningful as it used to be. And we gave you our yield guidance for the fourth quarter, and it's as strong as the third. So we're looking forward to it. Operator: Next question today is coming from Steve Wieczynski from Stifel. Steven Wieczynski: Josh, so as we think about the PROPEL targets, that would indicate you guys are targeting about, let's say, about $3.50 a share in earnings as we go out to 2029. 2026, we kind of know now is going to be what, $2.20 a share in earnings. So that's implying about 20% earnings growth a year through 2029. I mean you've mentioned in the past you guys don't forecast for the world to be perfect, but with oil prices, war, Caribbean pricing, potential headwinds and others. I mean as we sit here today, is that 20% earnings growth still pretty realistic in your view? And I mean, look, I assume so given you signed off on these targets. But just want to get your kind of high-level thoughts around that. Josh Weinstein: Yes. No, fair question. Obviously, from a -- let's start with the operational. And operationally, we are doing -- I would think this was a pretty good year against the backdrop that we were given. And so yields up almost 3% on a normalized basis in a year where there is the biggest geopolitical crisis we've seen in, I would argue, decades. That's a pretty good sign that the demand is robust and our brands are doing a really good job. Fuel prices, we do not know. You're right. We don't know what's going to happen in the future. They're going to go up, they're going to go down. I do know we can control consumption well and continue to drive that down, which is part of how we're going to improve the earnings profile. And our teams, we got to shoot high, right? And we got to think about the different types of things that we can do, not only on the demand generation side, but being innovative on the cost side, especially when our capacity is moderate growth, as you know, to be smarter and more efficient in everything we do. And I think our teams are absolutely capable of figuring those things out. Some of the trajectory that we've got is, frankly us, I think, getting a little bit ahead on the collaborative nature of the things that we can do internally to really leverage our scale on a fuller basis, take advantage of the technologies that are out there now and are continuing to evolve. So I'm not pretending it's not going to be hard work, but it's hard work that I think we're all excited to take on, and we've got pretty good road maps to get there. Now if fuel would cooperate, that would make it a hell of a lot easier. But clearly, we can't count on that. Steven Wieczynski: Understood. Okay. Josh, here's a question I don't think you're going to answer, but I'm going to try it anyway. So... Josh Weinstein: Thank you for the preface. Steven Wieczynski: I know. You can basically just say no comment after I ask this. Look, I know you don't want to give guidance at this point for next year. But if we go back and we think about kind of how you started your guidance ranges for -- I think it was the last 2 years, you kind of started those in a what we would call kind of a negative yield cost spread. David gave us a little bit of help in terms of cost for '27. But as we think about next year, should we be thinking about the way you kind of start '27 and that negative yield cost spread as you sit here today? Again, I don't think you're going to answer that, but I'm going to try it. Josh Weinstein: I won't answer it. Nice try. I won't answer it. I would say I fully expect it to fit into the algorithm that we provided for our PROPEL targets. So -- but let's see how we go. Operator: Our next question today is coming from Ben Chaiken from Mizuho Securities -- from Mizuho. Benjamin Chaiken: I guess, Josh, I want to touch on the European deployment comments. You gave us some interesting commentary about the size of the market relative to the Caribbean. And I could be mistaken, but it also sounds like there's a shift in itinerary as well, leveraging cooler weather experiences versus beach, which I think is new. Maybe you could expand on what you're seeing and the opportunity and then kind of a modeling follow-up. Josh Weinstein: Sure. Yes, talking about deployment here. And I don't think it's new. I think that Europe, particularly Northern Europe, is on the wish list of many North Americans. And frankly, with our European brands, it's the backyard for Germany, for the U.K., for -- even for Italy, which has a very strong presence from Northern Europe. And Northern Europe is -- it could be Baltic states, it could be Sweden, it could be the fjords, it could be actually getting all the way to Iceland and back. I mean there's just a lot of opportunity for things that are on people's list. And one of the things that we have noticed is that if people are looking for a beach vacation, we can satisfy them very well with what we do in the Caribbean. But there's a contingent that is looking particularly in the summer to explore Europe, and they can do it with us all around that European territory. We do believe that Northern Europe has been more beneficial for us over the past couple of years probably, and we expect that to continue. And it's not really a change. I guess probably we're emphasizing it a little bit more, particularly because there was a lot of questions about Europe because of the disruption in the spring. So it is something, though, that we feel very, very committed to for pretty much all of our brands. Even Carnival, when they're going over for refits and they have to get to Europe, that's a great itinerary for them while they're there. Benjamin Chaiken: Okay. And then maybe on another shot on goal regarding costs next year. If I'm not mistaken -- or maybe I can frame it this way. If I'm not mistaken, I think '26 had a few different onetime costs in it. There was some logistics moving crew around. I think you had kind of some Celebration Key overflow from FY '25. Is it fair to say that this year had something in the range of, I don't know, 130 to 150 basis points of one-timers in the number? That may not occur next year. David Bernstein: Probably a little over, yes, a little over 1 point. But keep in mind that this year's Celebration Key operated the full year. Half Moon Cay had a half a year of operation. And so we're also in a situation, but we're talking just a couple of tenths of a point. Next year, we will have 5 Evolution ships in dry dock compared to 2 this year. But overall, that may shift some of the costs around, but we are very confident in next year and our cost structure, given everything we're doing to control costs, find sourcing savings and find efficiencies in our business that will see controlled costs in 2027. Operator: Our next question today is coming from Conor Cunningham from Melius Research. Conor Cunningham: I was hoping you could just level set a little bit about what a normalized CapEx profile looks like for the company for now. I mean, again, new builds are pretty limited. So just on the non-newbuild side, what that could potentially look like? I realize that a lot of it's like high return on investment, but just any building blocks there would be super helpful. David Bernstein: Yes. Well, like the P&L, we're not giving guidance for CapEx for 2027 yet. But we have said this before, our non-newbuild CapEx for 2026 is $2.4 billion. And we do expect to see a little bit of a step-up in that number as we go forward because of -- I mentioned the 5 Evolution ships next year versus 2 this year. So we are expecting to see a step-up in the amount. But we'll give more guidance in December on that as well. Conor Cunningham: But that is a structural -- like we should expect that to be like a structural higher thing through the end of the decade as you have less new builds. Correct? David Bernstein: It's obviously very early to give multiple year guidance, but we do expect to see somewhat higher than the $2.4 billion a year for the next few years. Conor Cunningham: Okay. Super helpful. And then maybe a silly question, but I'm just trying to understand the commentary around the shift in European and whatnot. But I would think that European cruises are just a natural higher ADR versus other areas in some aspects. So as -- like is there just a mix benefit in the commentary that you're talking about from a booked position into '27 and '28? Or is it -- are you talking about it on a like-for-like basis if the itinerary deployments were the same overall? I realize that's a little nuanced, but yes. David Bernstein: It's a difficult question to answer because you've got different shifts. I mean, different times of the year, we get very different yields in different places. But overall, what we're always trying to do is optimize our revenue as well as our profit or operating income. And so we have shifted ships around in order to do that. Josh Weinstein: Yes. And I'd say that the 2 guiding principles we have when we're making our deployment decisions is, one, where ultimately do these guests want to go and what's the most accretive for the business. And so we trust -- I'd say, trust us, we're doing it for the right reasons for both guest satisfaction and the bottom line for the company. Conor Cunningham: I would hope so, but thank you. Operator: Next question today is coming from Lizzie Dove from Goldman Sachs. Elizabeth Dove: Congrats on great results. I wanted to ask about your private destination strategy. I think in the presentation, it looks like your Celebration Key visits will be up about 30% next year, RelaxAway and Isla Tropicale almost 50%. And so I know you've already made a lot of great investments there, already a great offering and amenities. But is there a desire over the longer term to kind of do more and expand further with any of those destinations? Josh Weinstein: I think there might be some little things we can do here and there for Isla Tropicale. Might be some more improvements we can make over time for RelaxAway. But that's -- we feel very comfortable about those positions. Celebration Key, we are certainly maxed out in the current build that we've got on the land side, and we have the ability to build more, and we've talked about that in a pretty theoretical way with you all before. I do hope and expect that we'll be able to talk about what's Phase 2 for Celebration Key to be able to provide even more to even more guests over time, but it's premature to talk about that. Elizabeth Dove: Got it. Okay. And then I guess kind of maybe final shot on goal at this, but I was going back to look at your PROPEL guidance back on what you talked about on the Q1 call. And something I found interesting then was, obviously, you said yield growth would outpace cost growth, but you made a comment that as you drive operational efficiencies and realize scale benefits and whatnot, that there'll be decelerating cost growth throughout the period. Now I know that's through 2029. But could you maybe just talk about that and when you kind of gave that guidance at the time for decelerating cost growth, if there's kind of a turning point for that or just how to think about some of those savings, appreciating you've already kind of outperformed on costs, but yes. Josh Weinstein: Yes. I mean I was going to start with, well, we're already pulling some of that forward, right? And I think the team is doing a really good job of not sticking to the algorithm for the sake of the algorithm, but really trying to do what we can and so pulling some of that forward. So we'll talk more about specific cost guidance when we get into 2027. But from a trajectory standpoint and what we think we can achieve for PROPEL, that still holds, but we'll talk about specifics in any particular year when we give guidance, and we're not there yet. Operator, I think we have time for one more call. Operator: Certainly. Our final question today is coming from Assia Georgieva from Infinity Research. Assia Georgieva: Congratulations on a great quarter. I understand that there might be still some issues with Q1 because of the summer events and because the winter quarters can be sloppier as we like to call them. But it does seem that '27 might be an above -- how should I put it, historical track of about 2% yield improvement. Is that fair to say? I know in the press release, you were saying it will be a record year, but even a 10 basis point yield improvement will technically be a record yield. So I just wondered relative to the 2% historical benchmark, is that what you're thinking at this point? Or could we be higher because of that Europe shift in demand? Josh Weinstein: Thank you for the question. I appreciate you giving it one last shot for the team on trying to get us to give more guidance, but we're not going to. And so we'll talk more about 2027 in 3 months when we get on the call. Assia Georgieva: I appreciate that. I had to try. Josh Weinstein: Yes, yes. Well done. Well done. Well, thank you, everybody, for participating, and we will talk to you again in 3 months. And before we get off, I'd just like to shout out again to the team for doing a remarkable job against a very complicated backdrop. So thank you very much for a job well done. Take care. Operator: Thank you. That does conclude today's teleconference. You may disconnect your lines at this time, and have a wonderful day. We thank you for your participation today. 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Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - Performance outperformance was driven by robust close-in demand and strong onboard spending, which pushed yields 1.2 percentage points above previous guidance. - Management attributed a 26% reduction in fuel consumption per ALBD since 2019 to aggressive itinerary optimization and new vessel technologies, effectively mitigating $750 million in potential fuel costs. - The 'Paradise Collection' destination strategy is a core differentiator, with Celebration Key welcoming 2.5 million guests in its first year and expanding to 3.5 million next year. - Strategic deployment shifts are leaning into 'coolcations' in Europe will tie with the Caribbean as the company's largest deployment region in 2027, with each representing 34% of the mix. - The new Carnival Rewards loyalty program is designed to increase lifetime value, with credit card issuances tripling since the program's launch on September 1. - Operational efficiency gains of 100 basis points in unit costs were achieved despite persistent inflationary pressures, reflecting scaled procurement and shoreside automation. - 2027 is already half booked with occupancy and pricing at record levels, though Q1 2027 reflects residual impacts from spring 2026 booking disruptions. - Capacity growth is intentionally constrained at 0.5% for 2027, allowing management to prioritize price over volume to drive higher returns on the existing asset base. - The company expects to finish 2026 with more brands generating mid-teens or higher returns on invested capital (ROIC) compared to the prior year. - Management is pulling forward opportunities embedded in 'PROPEL' targets by leveraging AI for commercial decision-making and personalized guest experiences. - Capital allocation will remain balanced between high-return investments, debt reduction, and returning capital to shareholders via dividends and the $1.2 billion share repurchase program. - A new accounting treatment for the Carnival Rewards program will create a temporary yield headwind of 0.6 points in Q4 2026 and 0.4 points in 2027 due to revenue deferrals. - Total debt has been reduced to below $24 billion from a $36 billion peak, with the release of all remaining collateral following an S&P credit rating upgrade to investment grade. - Elevated logistics costs resulting from the Middle East conflict continue to impact unit costs, though these are being partially offset by broader efficiency initiatives. - Modernization programs will accelerate in 2027 with 5 Evolution-class ships scheduled for dry dock, compared to only 2 in 2026. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management reiterated they are 'proudly a cruise company' and view land-based assets like Celebration Key and RelaxAway as high-return 'bolt-ons' rather than a shift in core business. - The focus remains on improving the cruise experience and driving ROIC through existing assets rather than pursuing large-scale all-inclusive resort transactions. - Management acknowledged significant industry-wide capacity growth in the Caribbean but emphasized that their 'Paradise Collection' portfolio provides a differentiated competitive advantage. - Yields remained up nearly 3% on a normalized basis despite the volatile macro environment and increased regional supply. - Onboard spending has accelerated rather than slowed, with over 50% of revenue now pre-booked, which management believes unlocks a 'second wallet' once guests are on board. - Management has seen no signs of a consumer pause, noting that vacations have become 'sacrosanct' for both North American and European travelers. - The company continues to avoid financial hedging, viewing it as a 'short-term band-aid' that involves paying fees to counterparties without guaranteed long-term benefit. - The primary strategy for managing fuel volatility remains the permanent reduction of consumption through operational and technical innovation.

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. Carnival Corporation Ltd. (NYSE:CCL) reports fiscal third-quarter earnings before the bell Tuesday, with Wall Street expecting adjusted EPS of $1.35 on roughly $8.39 billion in revenue. Carnival has topped earnings estimates for 12 straight quarters and Polymarket traders give it a 92% chance of reporting non-GAAP EPS above the market's $1.37 threshold. The more interesting action is on Kalshi, where nearly $330,000 has been traded on the exact words CEO Josh Weinstein and his team will use on the 10 a.m. ET call. "Holland America" leads at 82%, "Dry Dock" sits at 73% and "Modernization" at 58%. Carnival will begin upgrading six Holland America ships in 2027, adding cabins and refreshing guest areas. Weinstein said the extra cabins could pay for themselves within a couple of years, while the broader upgrades should generate returns in the high teens. "Dividend" is at 77% and "PROPEL" at 70%. Carnival distributed $207 million in dividends last quarter and has repurchased more than $450 million of stock. Its PROPEL plan targets more than 50% EPS growth from 2025, return on invested capital above 16% and roughly $14 billion returned to shareholders through 2029. "Middle East" sits at 73%, "Headwind" at 67% and "Tailwind" at 51%. The Middle East conflict weighed on European bookings last quarter, leading Carnival to trim its full-year net-yield outlook. Weinstein said June "seems to have turned a corner," while describing Carnival's growing Caribbean destination portfolio as providing "a lot of tailwinds." "AI" sits at 53%. CFO David Bernstein said suppliers adopting AI should become more efficient, giving Carnival room to push for lower fees. View more earnings on CCL "Princess" is a coin flip at 50%. Carnival ordered three new Princess ships for delivery in 2035, 2038 and 2039. "Consumer Sentiment" sits at 41%. Both Weinstein and Bernstein used the exact phrase on last quarter's call, each describing sentiment as historically low before pointing to demand that held up anyway. "Inflation" is at 30%, while "Oil" sits at just 19%. Fuel prices jumped nearly 30% last quarter, but Carnival consistently called it "fuel," and the word "oil" did not appear on the previous earnings call. "Tariff" sits at 10%. On last quarter's call, Weinstein mentioned tariffs while discussing the Middle East hit to bookings. He said tariff-related volatility caused a similar disruption in 2025 before consumers adjusted and bookings recovered. "Iran" is last at 7%. Carnival repeatedly discussed the Middle East conflict without naming Iran on its previous call. Traders expect Weinstein to focus on fleet investment, shareholder returns and whether the Middle East hit to bookings is fading. Carnival heads into Tuesday's report with a strong booked position. It posted record revenue, net yields and adjusted net income last quarter, while customer deposits reached an all-time high of $9 billion. The company was also 93% booked for 2026, with 2027 bookings running ahead of the prior year at higher prices. The question is whether Carnival can keep that momentum while absorbing higher fuel costs and softer European demand. Kalshi and Benzinga have an existing data collaboration agreement. Image: Shutterstock Read Also:Jensen Huang Says Runaway AI Is an Engineering Problem: 'We All Need to Hope' This article Carnival Earnings Prediction Market Preview: What Will Josh Weinstein Say? originally appeared on Benzinga.com © 2026 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

Carnival Corporation CCL) stock surged 13% on Tuesday after the cruise giant delivered better-than-expected fiscal third-quarter results and provided an encouraging demand outlook. The rally is particularly notable as CCL entered its Q3 report near 52-week lows of $21 a share, with investors concerned about higher fuel costs, geopolitical disruptions, and the durability of consumer travel spending. Image Source: Zacks Investment Research Carnival posted adjusted Q3 earnings of $1.43 per share, topping the Zacks EPS Consensus of $1.36 by 5% and matching the year-ago period despite a $131 million unfavorable impact from higher fuel prices and currency movements. Quarterly revenue rose 3.5% year over year to a record $8.44 billion, also exceeding Q3 expectations of $8.36 billion. Net yields increased 2.4% in constant currency and came in more than one percentage point above Carnival's previous guidance. Notably, Carnival has now exceeded earnings expectations for 16 consecutive quarters and has surpassed sales estimates in three of its last four quarterly reports. Most importantly, strong demand appears to be carrying into next year. Carnival's 2027 booked occupancy and pricing are both at record levels, while third-quarter customer deposits reached a record $7.6 billion despite essentially flat capacity growth. Image Source: Zacks Investment Research Carnival now expects full-year fiscal 2026 adjusted EPS of approximately $2.24, with adjusted net income of roughly $3.08 billion. Management said operational improvements have added more than $150 million to its adjusted net income outlook compared with June guidance, enough to offset roughly $150 million of higher fuel costs. There is one modest caution: Carnival expects Q4 adjusted EPS of about $0.20, slightly below the current consensus expectation of $0.24. Still, record 2027 bookings provide a much stronger indication that underlying cruise demand remains resilient. The combination of record revenue, improving yields, strong 2027 bookings, and a raised full-year outlook helps validate the bullish case for Carnival despite persistent fuel-cost pressures. Still, following a 13% one-day surge, investors may not need to aggressively chase CCL shares even at an attractive sub-12X forward earnings multiple. That said, Carnival stock currently lands a Zacks Rank #3 (Hold), making further upward earnings-estimate revisions for FY27 especially important following today's sharp post-earnings rally. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Carnival Corporation (CCL) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research