Carnival Corp. outperformed on most metrics in its fiscal third quarter, defying Wall Street expectations that fuel costs and Middle East conflict would weigh heavily on results. Analysts at Morgan Stanley, Jefferies and Citi Research all highlighted the operational beat, with Morgan Stanley's Jamie Rollo maintaining an Overweight rating and raising his price target 5% to $32.50. Carnival's revised guidance incorporates more than $150M of operational improvement, overcoming a $150M hit from higher fuel prices, and the company raised its FY26 net yield guidance to +3.8% year-over-year from +3.2% prior. Carnival also plans to increase its European deployment to 34% in 2027 from 31% prior, and expects to cut fuel consumption by 13% from FY23 and 26% from FY19. Jefferies' David Katz said Q4 guidance will likely prove conservative given Carnival has beaten net yield, NCC ex fuel, adjusted EBITDA and adjusted EPS expectations in each of the past seven quarters.
Carnival CorporationCarnival beat Q3 expectations, raised FY26 net yield guidance to +3.8%, and Morgan Stanley raised its price target 5% to $32.50.
Norwegian Cruise Line Holdings Ltd
Royal Caribbean Cruises Ltd
Jefferies Financial Group Inc
Morgan Stanley