While many are fixated on artificial intelligence (AI) stocks, few other growth stocks like Carnival Corporation (CCL) appear to be quietly defying expectations. Carnival closed 2025 with one of the strongest performances in its history, yet the stock remains widely overlooked heading into 2026.
Let’s find out if Carnival stock is a good buy now.
About Carnival Corp
Carnival Corporation is the world’s largest cruise company. It owns and operates a diversified portfolio of well-known cruise brands that offer vacation experiences across the globe. Carnival's core business involves selling cruise vacations with its major cruise lines like Carnival Cruise Line, Princess Cruises, Holland America Line, Costa Cruises, and others.
A Breakout Year That Flew Under the Radar
In the fourth quarter, Carnival reported revenue of $6.3 billion, up nearly $400 million compared to the prior-year quarter. Adjusted net income of $0.34 per share, jumping more than 140% year-over-year (YoY). The company ended 2025 with an adjusted net income of $3.1 billion, representing more than 60% growth YoY. Revenue hit an all-time high of $26.6 billion, boosted by record net yields and continuous close-in demand that exceeded expectations for the fourth time this year.
One of the most important achievements was Carnival’s balance sheet turnaround. The company has reduced total debt by more than $10 billion from peak levels and completed a $19 billion refinancing plan in less than a year, significantly lowering interest expense and improving financial flexibility. With debt reducing and cash flow strengthening, Carnival reinstated its quarterly dividend, declaring an initial payout of $0.15 per share beginning in early 2026. Management framed the move as a reflection of sustainable cash generation and confidence in long-term earnings power, an essential shift for a company that suspended dividends during the pandemic-era downturn.
Booking trends in 2025 suggest that the annual success was not a one-off. Carnival ended the year with record customer deposits of $7.2 billion. Management also emphasized that the company remains two-thirds booked for 2026 at a high price in Europe and North America. Management reported record booking volumes for both 2026 and 2027 sailings, highlighting resilient consumer demand despite broader macro uncertainty.
Looking ahead, Carnival expects adjusted net income of roughly $3.5 billion in 2026, representing approximately 12% growth over record 2025 levels. Analysts expect Carnival’s earnings to increase by 12.4% in 2026, followed by another 11.5% in 2027. As earnings push to new highs in 2026, Carnival may prove to be one of the most overlooked stocks entering the new year. Trading at 12 times forward earnings, Carnival is still a reasonable growth stock to buy now heading to 2026.
Is CCL Stock a Buy, Hold, or Sell on Wall Street?
Overall, CCL stock is rated a “Strong Buy” on Wall Street. Of the 25 analysts covering the stock, 18 have given it a “Strong Buy” rating, one recommends a “Moderate Buy,” and six rate it a “Hold.”
CCL stock has outperformed the market this year, rising 22%. The average target price is $36.61, indicating a potential upside of 19% from its current price. Additionally, the highest target price of $43 suggests the stock could rise by as much as 40% over the next 12 months.
On the date of publication, Sushree Mohanty did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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