Carnival Posts Higher Revenue but Mixed Profit Picture, with Quarter Net Income Down and Half-Year Net Income Up Year-Over-Year

Bottom line

- Carnival Corporation Ltd. (the "Company" or "we") reported that Revenue from Contract with Customer, Excluding Assessed Tax was $6,663,000,000 USD for the three-month reporting period, compared with $6,328,000,000 USD for the prior-year comparative period — an authorized increase from a positive prior-year figure to a higher positive current-period figure. - Revenue from Contract with Customer, Excluding Assessed Tax was $12,828,000,000 USD for the six-month year-to-date period, compared with $12,139,000,000 USD for the prior-year comparative — an authorized increase on a higher base.

- Operating Income (Loss) was $851,000,000 USD for the three-month reporting period, compared with $934,000,000 USD for the prior-year comparative — an authorized decrease, with the current period remaining a profit and the prior period a profit; transition is profit to profit. - Operating Income (Loss) was $1,458,000,000 USD for the six-month year-to-date period, compared with $1,477,000,000 USD for the prior-year comparative — an authorized decrease, also profit to profit. - Net Income (Loss) Attributable to Parent was $537,000,000 USD for the three-month reporting period, compared with $565,000,000 USD for the prior-year comparative — an authorized decrease, with both periods a profit; transition is profit to profit.

- Net Income (Loss) Attributable to Parent was $795,000,000 USD for the six-month year-to-date period, compared with $486,000,000 USD for the prior-year comparative — an authorized increase, profit to profit. 42 per diluted share USD/SHARES for the prior-year comparative — an authorized decrease, profit to profit. 37 per diluted share USD/SHARES for the prior-year comparative — an authorized increase, profit to profit.

- This section's reporting covers the three-month reporting period and the six-month year-to-date period of period-ended-2026-05-31, filed on Form 10-Q by Carnival Corp Ltd. (ticker CCL, CIK 0000815097, accession 0000815097-26-000096). The filing evidence contains no peer or industry comparison.

The filing evidence does not attribute this change to any single cause.

Financial performance

For the three-month reporting period and the six-month year-to-date period, Carnival Corp Ltd. reported the following in its 10-Q for period-ended-2026-05-31 filed under accession 0000815097-26-000096. The comparisons below are presented as qualitative relations only; the exact numbers are inserted by the machine from the catalog and cannot be inferred from prose.

- Revenue from Contract with Customer, Excluding Assessed Tax was $6,663,000,000 USD for the three months ended May 31, 2026, compared with $6,328,000,000 USD for the three months ended May 31, 2025, and was $12,828,000,000 USD for the six months ended May 31, 2026, compared with $12,139,000,000 USD for the six months ended May 31, 2025. The authorized direction on both views is an increase against the prior-year period, with revenue higher year over year on the quarter and on the six-month view. - Operating Income (Loss) was $851,000,000 USD for the three months ended May 31, 2026, compared with $934,000,000 USD for the three months ended May 31, 2025, and was $1,458,000,000 USD for the six months ended May 31, 2026, compared with $1,477,000,000 USD for the six months ended May 31, 2025. The authorized direction on both views is a decrease against the prior-year period, with operating income lower year over year while remaining a profit on both sides of the comparison. - Net Income (Loss) Attributable to Parent was $537,000,000 USD for the three months ended May 31, 2026, compared with $565,000,000 USD for the three months ended May 31, 2025, and was $795,000,000 USD for the six months ended May 31, 2026, compared with $486,000,000 USD for the six months ended May 31, 2025. On the three-month view the authorized direction is a decrease, with net income lower than the prior-year quarter but still a profit; on the six-month view the authorized direction is an increase, with net income higher than the prior-year half year while remaining a profit on both sides. - Earnings Per Share, Diluted was $0.39 per diluted share USD/SHARES for the three months ended May 31, 2026, compared with $0.42 per diluted share USD/SHARES for the three months ended May 31, 2025, and was $0.57 per diluted share USD/SHARES for the six months ended May 31, 2026, compared with $0.37 per diluted share USD/SHARES for the six months ended May 31, 2025. The authorized direction is a decrease on the quarter and an increase on the half year, with diluted EPS remaining a profit on both sides of each comparison.

On accounting context, management explains that for the prior comparative period it reclassified certain immaterial amounts within the Consolidated Statements of Cash Flows to conform to the current year presentation, and it reclassified certain immaterial amounts across the income, comprehensive income, balance sheet, cash flow, and shareholders' equity statements to separately present amounts attributable to noncontrolling interests primarily associated with the Isla Tropicale and Amber Cove subsidiaries. Management also completed its periodic review of ship useful lives and residual values in December of the cited note, increasing the estimated useful life and reducing the estimated residual value of each ship, applying the change prospectively and noting no material impact on the consolidated financial statements. Several recent FASB pronouncements covering income tax disclosures, segment reporting disaggregation, credit-loss measurement for receivables and contract assets, internal-use software capitalization, and environmental credits are described as under evaluation. The cited revenue and expense recognition note describes how guest cruise deposits, advance onboard purchases, bundled product allocations, future travel discount vouchers, cancellation fees, air and transportation sales, third-party shore excursions, and onboard concessionaire amounts are recognized.

The filing evidence does not attribute this change to any single cause.

The filing evidence contains no peer or industry comparison, so any read-across to other filings such as the SMITH A O CORP (AOS) Reports Softer Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views in Form 10-Q the reporting period insight cannot be drawn from this filing. No forward guidance, outlook, or expectation is provided in the filing evidence for this section, so guidance and expectations are not stated here.

Operating drivers and segments

- The filing reports a single Revenue from Contract with Customer, Excluding Assessed Tax figure at the consolidated level for the three-month reporting period, while the cited note states that "Revenues and expenses from our hotel and transportation operations, which are included in our Tour and Other segment, are recognized at the time the services are performed," leaving the disclosed segment-level revenue and margin split to that Tour and Other grouping only. - Management frames current-period performance as a continuation of completed strategic moves rather than a new operating story.

" - On the cost base, management extended the economic life of ships: "In connection with the increase in estimated useful life, we reduced our estimated residual value of each ship" toward the lower end of the stated salvage band for LNG-powered ships and a specific dollar band for all other ships. " - Management also flags non-operating technical items: a recent accounting pronouncement on income-tax disclosures, one on expense disaggregation, one on credit losses for receivables, one on internal-use software, and an environmental-credits standard, each described as still under evaluation with no quantified impact yet.

Cash flow and capital

- For the six months ended May 31, 2026, Net Cash Provided by (Used in) Operating Activities was $3,893,000,000 USD, higher than the prior-year comparative figure of $3,317,000,000 USD for the six months ended May 31, 2025. - For the six months ended May 31, 2026, Net Cash Provided by (Used in) Investing Activities was -$1,481,000,000 USD, decreasing in absolute outflow versus the prior-year comparative of -$1,191,000,000 USD for the six months ended May 31, 2025. - For the six months ended May 31, 2026, Net Cash Provided by (Used in) Financing Activities was -$2,104,000,000 USD, decreasing in absolute outflow versus the prior-year comparative of -$1,211,000,000 USD for the six months ended May 31, 2025. - Within those investing outflows, Payments to Acquire Property, Plant, and Equipment were $1,441,000,000 USD for the six months ended May 31, 2026, decreasing versus the prior-year comparative of $1,458,000,000 USD for the six months ended May 31, 2025. - Within those financing outflows, Payments for Repurchase of Common Stock were $381,000,000 USD for the six months ended May 31, 2026, an increase versus the prior-year comparative of $0 USD for the six months ended May 31, 2025. - Payments of Dividends were $414,000,000 USD for the six months ended May 31, 2026, an increase versus the prior-year comparative of $0 USD for the six months ended May 31, 2025. - On the balance sheet, Cash and Cash Equivalents, at Carrying Value was $2,243,000,000 USD as of the balance sheet date of May 31, 2026, while Long-term Debt, Excluding Current Maturities was $23,418,000,000 USD on the same date. - The filing evidence does not attribute this change to any single cause. - The filing evidence contains no peer or industry comparison. - The filing also discloses that, as of the balance-sheet date of May (omitted), the net book value of ships and ship improvements, excluding ships under construction, was (omitted) billion, with combined first-priority collateral of approximately (omitted) billion, providing context for the carrying value of the secured debt stack backing $23,418,000,000 USD.

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Peer and historical context

- The filing covers only the single reporting entity identified by Carnival Corp Ltd. (CCL) and does not provide a roster of named peer issuers, sector indices, or third-party benchmark data, so any cross-company benchmarking must be left to external sources rather than asserted from this document. - Within the issuer's own history, both the three-month period (the three months ended May 31, 2026 versus the three months ended May 31, 2025) and the six-month year-to-date view (the six months ended May 31, 2026 versus the six months ended May 31, 2025) can be compared on revenue, operating income, net income, and operating cash flow using the catalogued values.

- The authorized directional movements are not uniform across the same issuer: revenue moves higher on both the quarter and the half-year views, operating income moves lower on both views, net income moves lower on the quarter but higher on the half-year, and operating cash flow moves higher on the half-year view. That mix means a single "stronger than last year" or "weaker than last year" label would misrepresent the historical comparison. - The transition labels confirm that all three profit-side measures remain in profit on both sides of each comparison, so the year-over-year change is one of magnitude rather than a swing into or out of profit or loss; nothing in the catalog indicates that any of these line items crossed into negative territory relative to the prior period. The filing evidence contains no peer or industry comparison. The filing evidence does not attribute this change to any single cause.

On a historical basis, revenue expanded on both the three-month and six-month year-to-date views when compared with the prior-year periods, so the top-line trajectory was consistently higher year over year. Operating income moved lower on both views relative to the three months ended May 31, 2025 and the six months ended May 31, 2025, which is the opposite direction from revenue for the same comparisons. Net income presents a split picture: it was lower on the three-month comparison but higher on the six-month year-to-date comparison, so the cumulative effect of the first half differs from the most recent quarter's effect. Operating cash flow for the six-month period was higher than in the prior-year half. All four comparisons remain within the same profit-versus-profit frame, so the historical read is about direction and magnitude rather than a change in sign. The filing evidence does not attribute this change to any single cause. The filing does not isolate any single driver for these movements, and it does not provide segment-level detail that would let a reader decompose the revenue and operating income changes by geography, brand, or ship class. Readers who want a peer-relative view of how Carnival Corp Ltd.'s quarter and half-year results stack up against other cruise operators or against broader leisure and hospitality benchmarks would need to consult filings outside this document, because the filing evidence does not contain peer or industry comparison data of its own. Related cross-issuer reads such as SMITH A O CORP (AOS) Reports Softer Revenue, Operating Income, Net Income, and Diluted EPS on Both the Quarter and Six-Month Year-to-Date Views in Form (Accession cover a different issuer and cannot be used to benchmark CCL without external comparison data of its own.

Scenario analysis

Carnival Corporation & plc's reported figures for the three-month reporting period and the six-month year-to-date period, filed under 10-Q for period-ended-2026-05-31 (accession 0000815097-26-000096, CIK 0000815097, ticker CCL), frame three conditional paths for the remainder of the operating year, anchored only in the directional moves the filing authorizes.

In the BASE SCENARIO, the trajectory already disclosed continues unchanged. Revenue from Contract with Customer, Excluding Assessed Tax is positive in both the three-month reporting period and the six-month year-to-date period and is authorized to have increased relative to the prior-year comparative periods, with $6,663,000,000 running higher than $6,328,000,000 and $12,828,000,000 running higher than $12,139,000,000. Net Income (Loss) Attributable to Parent is a profit in both the six-month year-to-date and three-month reporting periods, reflecting $795,000,000 and $537,000,000; on the half-year view, the filing authorizes an increase from a prior-year profit of $486,000,000, while on the three-month view it authorizes a decrease from a prior-year profit of $565,000,000. The filing evidence does not attribute this change to any single cause.

In the UPSIDE SCENARIO, the half-year revenue lift persists and the gap between $12,828,000,000 and $12,139,000,000 widens, while the year-to-date net income line continues the authorized increase from $486,000,000 to $795,000,000, deepening the profit-to-profit transition on the half-year view. The three-month net income comparison remains profit on both sides, comparing $537,000,000 with $565,000,000, and the authorized decrease narrows as later quarters are layered in. Readers benchmarking a directional base case against peer reports can compare it with Broadcom Posts Higher Revenue, Operating Income, and Diluted EPS Year-Over-Year in the reporting period Filing to gauge the directional mix. The filing evidence does not attribute this change to any single cause.

In the DOWNSIDE SCENARIO, the quarterly revenue lift against $6,328,000,000 slows, the authorized three-month decrease in Net Income (Loss) Attributable to Parent widens between $565,000,000 and $537,000,000, and the authorized half-year increase between $486,000,000 and $795,000,000 still holds but compresses. The half-year revenue gap between $12,139,000,000 and $12,828,000,000 remains positive but narrows as well. The cited note on contingencies, covering the Helms-Burton matter, the Italian passenger matter, the consolidated data-security actions and the Vessel General Permit matter, together with the cautionary language around indemnification provisions and cyber incidents, leaves an unresolved overhang that could surface in any of the three scenarios. The filing evidence does not attribute this change to any single cause.

Counter-evidence within the filing is the divergent quarterly net income direction relative to the half-year direction, which is why the three scenarios cannot collapse into one. Unknowns remain: The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension.

Risks and what to watch

- Looking through the cited note covering Legal Proceedings and Risk Factors, the most prominent forward-looking risk is the consolidated data-security class action pending in the District Court for the Southern District of Florida. Management believes the ultimate outcome will not have a material impact on the consolidated financial statements, but the matter is still active and could surprise in either direction if discovery or settlement discussions move. - A parallel cybersecurity disclosure risk appears in the same section: the company notes that past incidents over the prior three-year window were not material, yet cautions that future attacks, incidents, or litigation could have a material adverse effect.

That asymmetric framing is itself a watch item, because it concedes the absence of any hard cap on potential exposure. - An Environmental Protection Agency matter is disclosed in connection with alleged Clean Water Act violations tied to the Vessel General Permit. Management again states the expected outcome is not material, but a potential civil penalty and injunctive relief component is flagged, which is a different shape of risk than a pure monetary claim because injunctive relief can change operating practice.

- Other Contingent Obligations include indemnification provisions embedded in certain debt contracts tied to changes in tax law or other laws that raise lender costs. No stated or notional amount is disclosed, and the maximum potential payment cannot be estimated, which is itself a transparency gap that readers should monitor in future filings. - Counter-evidence to the cybersecurity concerns is the company's stated experience that costs over the prior three-year window were not material and prior incidents did not have a material adverse effect on business, results of operations, financial position, or liquidity.

Management explicitly notes that past performance is not assurance about future incidents. - The filing evidence does not disclose segment-level detail for either revenue or net income, so any read on which geography, brand, or ship class is driving the reported moves is unavailable. - The filing evidence contains no peer or industry comparison, so it is not possible from this filing alone to gauge whether the trajectory shown by Revenue from Contract with Customer, Excluding Assessed Tax for the three months ended May 31, 2026 and the six months ended May 31, 2026, or by Net Income (Loss) Attributable to Parent across the same windows, is in line with the cruise or broader travel-leisure cohort.

- The cited note on Fair Value Measurements and Financial Risks is truncated in the available extract, so the specific fair-value tier that matters most for mark-to-market exposure next period cannot be evaluated here. - Metrics to watch next period include: whether the consolidated Florida data-security matter advances beyond the consolidation stage, since that is the first inflection point that could convert a non-material belief into a quantified exposure; any update on the Environmental Protection Agency matter, particularly whether the matter resolves with a stated penalty or escalates into an injunction; Revenue from Contract with Customer, Excluding Assessed Tax for both the three months ended May 31, 2026 and the six months ended May 31, 2026 in the next filing, to confirm whether the prior-period direction continues, given that both windows show an authorized direction increase against the three months ended May 31, 2025 and the six months ended May 31, 2025; Net Income (Loss) Attributable to Parent for both windows, given the authorized direction decrease on the the three months ended May 31, 2026 comparison against the three months ended May 31, 2025 and the authorized direction increase on the the six months ended May 31, 2026 comparison against the six months ended May 31, 2025, both within a profit-to-profit authorized transition; and any emergence of a stated or notional amount under the debt-contract indemnification clauses, which would convert a currently unquantifiable exposure into a measurable one.

The filing evidence does not attribute this change to any single cause. The filing evidence contains no peer or industry comparison. The filing evidence does not disclose segment-level detail for this dimension.