Carnival Corp. gets S&P investment grade, shares in focus after record quarter

Carnival Corp. has been upgraded to investment grade by S&P Global Ratings on the back of strong bookings into 2027 and a record fiscal second quarter, while the New York-listed shares remain under scrutiny after recent post-earnings volatility.

By Anna Wagner, Analysts & Consensus desk. Reviewed prior to publication on 2026-06-26, 11:52.

Carnival Corp. (US1436583006) is back at investment grade after S&P Global Ratings lifted its issuer rating to BBB-, while the New York-listed shares trade against a backdrop of record second-quarter earnings and volatile recent price moves on the NYSE.

S&P lifts Carnival back to BBB-

S&P Global raised Carnival's long-term issuer credit rating from BB+ to BBB-, restoring the cruise operator to investment-grade status based on robust advance bookings and improving leverage metrics. The agency cites that roughly 93 percent of 2026 capacity is already booked, with 2027 reservations running ahead of last year's levels at higher prices.

According to S&P, funds from operations to debt are projected to approach about 25 percent in 2026 and surpass that mark in 2027, while adjusted debt to EBITDA is expected to be around 3.3 times by the end of fiscal 2026, below the 3.75 times threshold used for the upgrade decision. The move follows Carnival's record second quarter and puts the company alongside peers such as Royal Caribbean and Norwegian Cruise Line in attracting institutional investors constrained to investment-grade credit.

Record Q2, cautious yield guidance

For its fiscal second quarter ended May 31, 2026, Carnival reported record levels of revenue, adjusted net income, net yields and customer deposits, extending a robust post-pandemic recovery in global cruise demand. Revenue reached about 6.66 billion dollars, an increase of roughly 5 percent year on year, while adjusted EBITDA climbed to a record 1.58 billion dollars.

Adjusted net income came in at approximately 569 million dollars, more than 20 percent above the prior-year period, according to earnings call highlights. Customer deposits, which represent cash paid in advance by guests, hit an all-time high of about 9 billion dollars, underscoring the strength of the booking pipeline for future sailings.

Despite the strong quarter, management trimmed its full-year constant-currency net yield growth guidance, reducing the outlook by about 100 basis points to roughly 1.75 percent from a previous estimate of 2.75 percent, reflecting softer last-minute demand for Mediterranean itineraries amid tensions in the Middle East. Higher fuel costs and elevated airfares for North American guests traveling to Europe also weighed on the updated outlook.

Analysts adjust price targets after earnings

Following the June 23 earnings release, a broad group of Wall Street and European research houses updated their models for Carnival, with several lifting price targets while keeping broadly positive ratings. Goldman Sachs, Stifel and Barclays each maintained Buy or Overweight recommendations, while adjusting their targets in a range roughly between 35 and 37 dollars per share.

Deutsche Bank reiterated a Hold stance but raised its target to about 34 dollars, while BNP Paribas and Susquehanna maintained Outperform or Positive ratings with targets around 33 dollars. MarketScreener data indicates a cluster of targets in the mid-30 dollar range, although commentary from UBS highlighted that Carnival may struggle to benefit fully from any improvement in booking trends in 2026 due to capacity deployment and geopolitical headwinds. A recent analysis on Investing.com describes the consensus as a Moderate Buy with an average 12-month target price in the mid-30 dollar area, implying double-digit upside versus current levels.

How Carnival makes its money

Carnival generates the bulk of its revenue by selling cruise vacations across its portfolio of brands, including Carnival Cruise Line, Princess Cruises, Holland America Line and Costa Cruises, with ticket sales complemented by onboard spending on excursions, dining, casinos and retail. The company also earns income from its private island destinations and associated port operations, which support itineraries in the Caribbean and other popular regions.

Where the shares trade today

The Carnival Corp. shares (US1436583006) last traded on the NYSE at about 28.90 US dollars on 2026-06-26, 09:45, according to recent quote data.

Key data on the Carnival Corp. shares

• Company: Carnival Corporation & plc
• ISIN: US1436583006
• WKN: 120100
• Ticker: CCL
• Trading venue: NYSE
• Price (as of 2026-06-26, 09:45): 28.90 USD
• Market cap: approximately 32 billion USD (as of 2026-06-26)
• Sector / industry: Consumer Discretionary / Hotels, Resorts & Cruise Lines
• Index membership: S&P 500
• Next earnings date: 2026-09-24

Disclaimer: This article is for informational purposes only and does not constitute investment advice, a recommendation to buy or sell securities, or any other form of financial guidance. All data are based on sources considered reliable; accuracy and completeness cannot be guaranteed.