Carnival posted its sixth straight earnings beat and twelfth consecutive quarter of record net yields, yet its stock trades at roughly half the valuation multiple of rival Royal Caribbean. Carnival reported adjusted earnings per share of $0.41 on revenue of $6.66 billion, while Royal Caribbean delivered adjusted EPS of $3.60 on revenue of $4.45 billion. Carnival’s customer deposits reached a record $9.0 billion and its fleet is 93% booked for 2026, but the company is still working down a $24.9 billion debt load. Royal Caribbean, with a forward EPS guide of $17.10 to $17.50 and an adjusted EBITDA margin of 38.2%, trades at a trailing price-to-earnings ratio of 19 compared with Carnival’s 13. The divergence hinges partly on inflation risks, as headline PCE re-accelerated to 4.07% in May 2026 and energy costs surged over 24%, testing Carnival’s early 2027 booking strength.
Carnival CorporationCarnival posted earnings beat and record yields but trades at half Royal Caribbean's valuation due to debt and inflation risks.
Royal Caribbean Cruises LtdRoyal Caribbean has higher valuation multiple, stronger EPS, and better margins compared to Carnival.
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