Carnival Corporation & plc

Q3 2026 delivered record performance; beat guidance - Company reported record revenues and yields; Q3 net income exceeded June guidance by >$100M (≈$0.08/share). - Yield strength: yields +~2.5% YoY, and management said close-in demand and onboard spending drove ~1.2 pts above June guidance. - Cost execution: cruise costs excluding fuel per ALBD up only +1.8% YoY, 100 bps better than June guidance; fuel consumption improved ~nearly 4% YoY (on top of prior reductions).

Updated 2026 full-year outlook raised slightly; EPS guidance increased - Operational improvement >$150M net income vs June guidance, offsetting ~$150M headwind from higher fuel prices. - 2026 yield forecast: ~+2.3% (about 0.5 pt better than June). - Q4 2026 outlook: yields ~+1.7% YoY (about 0.75 pts better than implied June); cruise costs ex-fuel ~+2.2% YoY. - Fuel consumption mitigation: fuel consumption per ALBD -26% since 2019, and at guidance fuel price assumptions the lower consumption offsets ~nearly $750M. - Final 2026 EPS: $2.24, up $0.02 from prior guidance.

2027 demand/positioning looks strong (but Q1 has residual booking disruption) - Management emphasized 2027 already ~half booked with occupancy and pricing at record levels. - Capacity growth in 2027: ~+0.5% vs 2026 (flat-ish), supporting disciplined pricing/“booking curve” management. - Booking disruption impact: spring disruption carried into Q1 2027; management expects Q1 remains pressured due to residual effects, but said bookings rebounded meaningfully over the past ~3 months. - On Europe vs Caribbean: Europe becomes tied with Caribbean as #1 deployment region in 2027 (~34% each), reflecting growth in Northern Europe cool-weather deployments.