Carnival Corporation posted better-than-expected fiscal second-quarter 2026 results, but the stock's low valuation reflects ongoing cost and debt concerns. Revenue rose 5.3% year over year to $6.66 billion, beating the consensus estimate of $6.64 billion, while adjusted earnings of 41 cents per share topped the 35-cent forecast. The company reduced total debt to $24.89 billion from $26.64 billion and improved its net debt to adjusted EBITDA ratio to 3.1 times. However, management lowered its full-year adjusted EBITDA guidance to about $7.11 billion from $7.19 billion, citing cost inflation, fuel volatility, and currency headwinds. Carnival trades at 1.28 times forward sales, well below the 2.53 times multiple for its Zacks sub-industry, and carries a Zacks Rank #3.
Carnival CorporationQ2 beat and debt reduction positive, but lowered EBITDA guidance and cost inflation concerns weigh.
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