CCL
Earnings beat, but the vibes are mixed
Carnival came in with a clean Q3 beat: earnings of $1.43 a share topped the $1.36 consensus, and revenue hit $8.435 billion versus the $8.300 billion expected. The company also raised its FY26 adjusted EPS guide to about $2.24 from $2.22.
So why are analysts taking a scissors to targets?
Because the cruise ship may be sailing a bit into a ceiling. Carnival’s Q4 guidance came in lighter than expected at about 20 cents per share, below the 26-cent estimate. That’s usually enough to make analysts squint, even when the headline quarter looks shiny.
- BNP Paribas kept an Outperform rating but cut its price target from $33 to $31
- Mizuho also kept Outperform and trimmed its target from $39 to $38
- Shares still rose about 1% to $25.37, because investors love a beat-and-raise story, even if the raise comes with a small asterisk
The investor read-through
This is one of those classic “good quarter, cautious forward look” setups. Carnival is still showing demand is there and costs are under control, but the market is clearly debating how much of that strength is already baked into the stock.
Big picture: the ship is moving in the right direction, but Wall Street is dialing back the champagne spray just a bit.