Carnival Corporation Stock Soars 10.37% in Four Days as Earnings Surpass Estimates and Revenue Hits 6.33 Billion

On June 24, 2025, Carnival Corporation & plc (CCL) saw a significant surge in its stock price, rising by 6.88% and marking its fourth consecutive day of gains, with a total increase of 10.37% over the past four days. This upward trend was driven by a series of positive developments reported in the company's second-quarter earnings release.

Carnival's second-quarter earnings and revenue surpassed estimates, with earnings per share (EPS) of $0.35, exceeding the predicted $0.24, and revenue reaching $6.33 billion. The company's net income for the quarter was $470 million, or 35 cents per share, driven by strong cruise demand and effective cost management. Operating income hit a record $934 million, up 66.8% from the previous year, while adjusted EBITDA of $1.508 billion marked a 26% increase. These financial results were bolstered by a 6.4% growth in yields, driven by higher ticket prices and strong onboard spending.

Carnival also announced an increase in its full-year 2025 net income guidance by $200 million to approximately $2.7 billion, and raised its net yield growth guidance to 5% for the year. The company's strategic investments in new destinations and fleet enhancements are expected to further drive growth. For instance, the upcoming opening of Celebration Key in July 2025 is anticipated to attract premium pricing and sustained marketing investment. Additionally, upgrades to Relax Away Half Moon Cay and Mahogany Bay are set to enhance revenue opportunities through improved beach destinations.

Carnival's balance sheet actions, including the prepayment of $350 million of notes due in 2026 and refinancing the remainder to 2031, have reduced net interest expenses by $20 million through early 2026. The company's net debt to EBITDA ratio improved from 4.1x to 3.7x sequentially from Q1 to Q2, with continued deleveraging expected. Carnival Corporation & plc is now one rating notch below investment grade with S&P and Fitch, following recent upgrades.