Carnival Corporation (CCL) stock trades at 11.5 times its earnings over the past twelve months. That valuation sits at about half the S&P 500’s 22.7 times. Investors are assigning this multiple to a company that just hit new highs in revenue and net income, according to a September 29 update from management. However, executives also cautioned that day that a booking setback earlier in 2026 has reached into bookings for 2027. So can Carnival keep earning more while it pays its debt down, and can it hold its prices in 2027?
Carnival Is Earning More, But Its Debt Is Heavy
Carnival generated $1.92 billion in net income during fiscal Q3 2026, which ended in August. That figure is up from $1.85 billion a year earlier. Over the full twelve months, net income reached $3.14 billion, compared to $2.64 billion in the twelve months prior.
The company’s stock went the other direction. Shares lost 6.5% over the past year, while the S&P 500 gained 18.0%. With profit up and the share price down, Carnival’s multiple fell over the past year.
Carnival’s profitability trails the broader market. Its operating margin over the past twelve months was 16.0%, below the 18.5% for the S&P 500 taken as one company.
Where the cruise operator differs most from the broader market is its debt. Carnival’s debt equals 69.8% of its market value, against 20.2% for the S&P 500. Management noted on September 29 that total debt, excluding leases, is now below $24 billion, down from a peak of $36 billion in 2023.
Can Carnival Keep Raising Prices In 2027?
The company is currently booking 2027 sailings at higher prices. During the September 29 call, management stated that Carnival is already half booked for the year, achieving record levels for both occupancy and pricing. Carnival forecasts only 0.5% more capacity in 2027 than in 2026. With few extra cabins to sell, any rise in sales would have to come mostly from what each guest pays.
The lingering setback appears in the first months of 2027. Management said earlier disruptions carried heavily into bookings for the first quarter of 2027. Executives added that those bookings had rebounded meaningfully in the three months before the call, and that the company sees the impact as temporary.
Carnival Reports Again In December
The company’s next report, expected on or around December 18, 2026, will close out its fiscal year. Management’s guidance for full-year adjusted earnings is now $2.24 per share, up two cents from its previous guidance. Customer deposits, a third-quarter record of about $7.6 billion, up about 7%, are the number to watch in that upcoming report.
