Carnival Corporation & plc (CCL) Delivers Record Results, Restores Dividend, and Gains Analyst Confidence Despite Industry Headwinds"

Carnival Corporation & plc (NYSE:CCL) is one of the best cheap stocks to buy for 2026. On January 13, TD Cowen raised its price target for Carnival Corporation & plc (NYSE:CCL) from $35 to $38 while maintaining a Buy rating on the stock. In explaining its view, TD Cowen acknowledged near-term challenges in the cruise market, noting that Caribbean yield pressures will make a tough earnings season for Royal and Norwegian. This refers to pricing pressures in the Caribbean cruise segment affecting industry peers Royal Caribbean and Norwegian Cruise Line.

And despite these short-term headwinds, TD Cowen emphasized that fundamental demand for cruises remains strong. Also, capacity trends look constructive through fiscal year 2029, the firm added.

Meanwhile, in December, Carnival Corporation & plc released the annual report for the fiscal year ended November 30, 2025, in which it reported record annual operating income of $4.5 billion. This figure is about 25% higher than FY2024.

Management detailed that strong demand and higher passenger pricing enabled their full-year revenues to also touch a record peak of $26.6 billion. Net income for the year came in at $2.8 billion, and adjusted net income reached about $3.1 billion. Both figures are new highs. Another record figure was the adjusted EBITDA, which touched $7.2 billion, more than $1 billion above 2024 levels. And because of these blowout figures, Carnival’s board reinstated a quarterly dividend, declaring an initial payment of $0.15 per share payable February 27, 2026. Also, management raised its earnings outlook well above prior expectations. They project adjusted net income of approximately $3.5 billion for the coming year, and expect return on invested capital to exceed 13.5% and approach 20-year highs.

Carnival Corporation & plc (NYSE:CCL) operates cruise lines under brands including Carnival Cruise Line, Princess Cruises, Holland America Line, and Costa Cruises. Its fleet provides vacation packages that combine lodging, dining, entertainment, and global destinations.

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Disclosure: None. This article is originally published at Insider Monkey.