By Emily Bary
The cruise operator’s earnings report spotlighted strong pricing and bookings trends
Carnival has improved its leverage positioning, allowing for the resumption of payouts.
Carnival will return to the ranks of dividend payers for the first time in more than five years.
The cruise operator announced on Friday that it will be bringing back its quarterly payout, with CFO David Bernstein citing “a meaningful turning point” in the company’s leverage positioning. Carnival (CCL) intends to pay a 15-cent quarterly dividend per share starting on Feb. 27, 2026, and the payout will have a record date of Feb. 13, 2026.
The company last paid a dividend on March 13, 2020, according to Dow Jones Market Data, before suspending that payout early in the COVID-19 pandemic. Since then, Carnival has completed a $19 billion refinancing plan and cut its interest expense, according to the company.
“This decision highlights confidence in our future performance and continued commitment to delivering value to shareholders,” the CFO added in a release.
Bernstein analyst Richard Clarke noted that the dividend translates to a 2.1% yield and marks an earlier-than-expected resumption of capital returns, which, at the same time, have been “long awaited” by investors.
See also: Cruise and other travel stocks keep climbing, with a little help from the Fed
The company also said it is looking to simplify its corporate structure, including by moving to a single listing on the New York Stock Exchange from its current dual-listing framework that saw shares trading on the London Stock Exchange as well.
Carnival’s stock was up 7% in morning action Friday.
Results for the latest quarter were somewhat mixed, with adjusted earnings per share of 34 cents easily topping the 25-cent consensus view. Revenue amounted to a record $6.33 billion. Analysts tracked by FactSet were looking for $6.37 billion.
Clarke noted “some top-line softness” but also “strong performance on costs.”
Read: Norwegian Cruise Line sets a revenue record, but Wall Street wanted even more
The company forecast a 3% net yield for the full year ahead, after normalizing for accounting matters involving a new loyalty program and other factors. The guidance on that metric, which measures revenue per available cruise day, “is likely just enough to keep the buy-side happy,” Clarke wrote. Meanwhile, Carnival’s full-year earnings outlook was upbeat, he noted.
Josh Weinstein, the company’s CEO, said in the release that the company is “at historical high prices,” after currency adjustments, in the North American and European markets.
He called out “record booking volumes for 2026 and 2027 sailings” that rolled in over the past three months. “In addition, strong booking volumes continued from Black Friday through Cyber Monday, even outpacing prior year’s robust levels, which is a favorable indicator for wave season,” Weinstein added.
Carnival’s results are lifting other cruise stocks, with Royal Caribbean shares (RCL) up about 4% and Norwegian Cruise Line Holdings shares (NCLH) ahead about 5%.
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-Emily Bary
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12-19-25 1029ET
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