stockrowWhat it does
Carnival Corporation is a cruise-vacation company led by Chief Executive Officer Josh Weinstein. It operates eight cruise lines: AIDA Cruises, Carnival Cruise Line, Costa Cruises, Cunard, Holland America Line, P&O Cruises, Princess Cruises and Seabourn. The brands are designed for different vacation preferences, from contemporary voyages aimed at a broad family market to premium and luxury experiences with different itineraries, accommodation and service levels.
A cruise ticket generally combines accommodation, most meals, onboard amenities and entertainment, childcare programs, and visits to several ports. Guests can also buy packages or individual extras before sailing or while onboard. These include beverages, internet access, shore excursions, restaurants, retail items, photography, transport and onboard credits.
The company also operates port destinations and exclusive islands for its brands, including Celebration Key, RelaxAway, Half Moon Cay, Amber Cove, Grand Turk Cruise Center, Isla Tropicale, Princess Cays and Puerta Maya. Its Tour and Other business includes Holland America Princess Alaska Tours, which operates hotels, lodges, glass-domed railcars and motorcoaches in Alaska and the Canadian Yukon.
The company sells cruises across contemporary, premium and luxury categories, and can reposition ships between regions as demand changes. Its crew and shoreside workforce are drawn from approximately 150 countries.
How it makes money
Carnival earns most of its revenue in two ways: passenger tickets and onboard and other spending. Passenger ticket revenue was $17.4 billion in FY2025, representing 65.4% of revenue, while onboard and other revenue was $9.2 billion, or 34.6%. Ticket revenue includes cruise fares, certain air and other transportation sales, and cancellation fees. The remaining category includes beverage sales, casino gaming, shore excursions, specialty restaurants, internet and communication services, spas, retail and photo sales.
The company reports North America and Europe cruise segments, plus Cruise Support and Tour and Other. North America generated $17.6 billion of FY2025 revenue and Europe generated $8.5 billion. Cruise Support includes destinations and related services that support the brands, while Tour and Other includes the Alaska land business.
Pricing varies by itinerary, cabin category, season, voyage duration and brand. Reservations are generally made months before departure, particularly for longer itineraries. Guests normally pay a deposit to reserve and the balance before sailing. This means the company receives much of its ticket cash before providing the cruise; current customer deposits were $6.8 billion at November 30, 2025.
FY2025 revenue was $26.6 billion; Q2 2026 net income was $569 million. Management said on the call that customer deposits reached $9 billion in Q2 2026. Demand is seasonal: the Northern Hemisphere summer quarter has historically produced the highest ticket prices, occupancy and share of operating income. Alaska land-tour revenue is concentrated from May through September.
| Product or service | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| Passenger ticket | $17.4 billion | 65.4% | 5.81% |
| Onboard and other | $9.2 billion | 34.6% | 7.53% |
Customers and how it sells
Carnival serves leisure travelers through brands positioned around different vacation needs and source markets. Carnival Cruise Line, Cunard, Holland America Line, Princess Cruises and Seabourn principally draw guests from the United States and Canada; AIDA and Costa principally serve Continental Europe; and Cunard and P&O Cruises have the United Kingdom as their main source market. The company also serves Australia and New Zealand and other markets.
The United States accounted for $14.8 billion, or 55.8%, of FY2025 revenue. Germany represented $3.3 billion, or 12.6%, and the UK Plan represented $3.1 billion, or 11.5%. North America was 66.1% of FY2025 revenue and Europe was 31.8%.
Guests book through travel agents, tour operators, company vacation planners, brand websites, customer-service agents and onboard future-cruise consultants. Travel-agent relationships are generally nonexclusive, and agents receive a base commission with possible additional commissions or other incentives based on sales terms. No group of travel agencies under common control accounted for 10% or more of revenue in 2025.
All brands operate online booking engines and consumer websites. They also use guest feedback, marketing, social media, loyalty and recognition programs, targeted offers, and travel-agent education to generate repeat and new bookings.
| Region | Revenue, FY2025 | Share | Change on the year |
|---|---|---|---|
| United States | $14.8 billion | 55.8% | 5.59% |
| Other | $5.4 billion | 20.2% | 4.21% |
| Germany | $3.3 billion | 12.6% | 9.30% |
| UK Plan | $3.1 billion | 11.5% | 11.5% |
Suppliers and costs
Carnival buys goods and services from a global supply base and uses many suppliers across its brand portfolio. It also spends on vessel refurbishments, enhancements and new ships. Its contracted shipbuilders are Fincantieri in Italy and Meyer Werft in Germany. The company had seven ships under contract for delivery through 2033 as of November 30, 2025.
Major operating costs include travel-agent commissions, air transportation, port fees, taxes, onboard cost of sales, crew and officer payroll, fuel and emission allowances, food, repairs and maintenance, dry-dock work, entertainment, freight and logistics, insurance and Alaska tour operations. Foreign exchange affects results because it earns revenue, pays expenses, owns assets and incurs liabilities in currencies other than the U.S. dollar; shipbuilding contracts are typically denominated in euros.
FY2025 operating expenses were $15.9 billion, selling and administrative expense was $3.4 billion, and depreciation and amortization was $2.8 billion. Fuel prices, fuel availability, regulatory costs and supplier disruptions can affect the cost base.
- Revenue$26.6B
- Cost of revenue−$15.9B
- Selling, general and administrative−$3.4B
- Other operating costs−$2.8B
- Operating income$4.5B
Competitive position
Carnival competes with Royal Caribbean Group, Norwegian Cruise Line Holdings, Ltd. and MSC Cruises in global cruising. Based on 2025 Cruise Industry News statistics, those companies together with Carnival represented approximately 80% of cruise-industry capacity as of December 31, 2025. It also competes for vacation spending with hotels, resorts, theme parks, organized tours, casinos, vacation-ownership properties and internet-based alternative lodging sites.
Competition occurs on experience, destinations, vessel and cabin types and sizes, travel-agent preferences, pricing and value. Capacity additions, limits on ships or guests at ports, destination fees and taxes, and competitors’ investment in ships or destinations can affect sales, pricing and itinerary choices.
Carnival’s eight brands cover contemporary, premium and luxury cruising and are marketed to distinct guest profiles. It owns or operates destinations and exclusive islands, and its Alaska business combines cruises with lodges, railcars and motorcoaches. Management said on the call that its Alaska offering spans five brands, 19 ships and four embarkation ports, and that it has a fully integrated land-and-sea platform.
Our reading: The multi-brand portfolio is a meaningful moat because it gives Carnival distinct positioning across customer groups and regions, but it operates alongside other large cruise operators with most industry capacity. Our reading: The owned destination portfolio and Alaska land-and-sea assets are stronger moat sources because they support itineraries and experiences that competitors must otherwise source from third parties.
| Competitor | Where they compete | Threat (our reading) |
|---|---|---|
| Royal Caribbean Group | Global cruise industry capacity | High |
| Norwegian Cruise Line Holdings, Ltd. | Global cruise industry capacity | High |
| MSC Cruises | Global cruise industry capacity | High |
Growth opportunities
Carnival’s stated growth approach combines commercial execution, measured newbuild capacity, upgrades to existing ships and destination development. It expects its ship orderbook to support deliveries through 2033, and management said on the call that it intends to maintain a one-to-two ships-per-year cadence rather than materially accelerate capacity growth. It also ordered three Princess Cruises ships for delivery in 2035, 2038 and 2039.
Modernization programs are intended to improve guest-facing spaces, operating efficiency and, where feasible, add cabins. Management said on the call that AIDA Bella was the third of seven ships to complete the AIDA Evolution upgrade and that six Holland America Line ships will begin receiving upgrades in fall 2027. Management said cabins added through these programs are expected to pay for themselves within a couple of years.
Destination investment is another growth vector. Management said on the call that Celebration Quay is expected to welcome 3,500,000 visitors in FY2027, while the Paradise Collection is expected to receive 9,000,000 guest visits in FY2027. The company is expanding capacity at Celebration Quay, RelaxAway, Half Moon Cay and Isla Tropicale, aiming to increase itinerary differentiation and the share of Caribbean sailings with exclusive-destination calls.
Management also said on the call that bookings and pricing for 2027 and later sailings were ahead of the prior year, including European deployment bookings that were up by mid-teens percentages at higher prices.
- $1.9BFY2021
- $12.2BFY2022
- $21.6BFY2023
- $25.0BFY2024
- $26.6BFY2025
Structural risks
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Demand risk: Geopolitical uncertainty, war, military action, pandemics, inflation, higher interest rates, travel restrictions and weaker consumer conditions can reduce the ability or desire to travel and can disrupt operations.
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Operating and reputation risk: Accidents, illnesses, mechanical failures, fires, collisions, groundings, environmental incidents or adverse publicity can disrupt voyages, harm guest and crew confidence, and damage brand reputation.
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Weather and destination risk: Hurricanes, typhoons, floods, fires and other natural disasters can affect ships, ports, exclusive islands, shore excursions, guest source markets and air travel. Caribbean destination investment increases exposure to weather conditions in that region.
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Leverage and refinancing risk: Debt requires substantial cash service. If cash generation is insufficient, Carnival may be unable to meet obligations, refinance on acceptable terms or satisfy debt covenants.
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Fuel, supplier and shipyard risk: Fuel costs and availability can be volatile, while supplier failures or supply-chain disruptions can raise costs or limit critical goods and services. A limited number of shipyards can build, repair or upgrade vessels.
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Regulatory and technology risk: Environmental, emissions, health, safety, security, data-privacy and other regulations can require capital spending, allowances or other costs. Cybersecurity incidents, privacy breaches and technology disruptions can interrupt operations and expose the company to fines, litigation and reputational damage.
Leadership
Carnival Corporation and Carnival plc formerly operated as a dual-listed company with separate legal identities, shareholders and listings. Management said on the call that the structure was unified in early May under Carnival Corporation, with Carnival plc as its UK subsidiary.
| Name | Role | Since | Total pay, FY2025 |
|---|---|---|---|
| Josh Weinstein CEO | — | $18.9 million | |
| David Bernstein | Chief Financial Officer and Chief Accounting Officer | — | $6.9 million |
| Bettina Deynes | Chief Human Resources Officer | — | $2.9 million |
| Lars Ljoen | Chief Maritime Officer | — | $2.8 million |
| Enrique Miguez General Counsel | — | $3.5 million |
Bottom line
Our reading
Our reading: Carnival is a capital-intensive leisure-travel operator whose revenue model combines advance-paid cruise tickets with meaningful onboard spending, supported by a broad portfolio of brands and destinations. Our reading: Its differentiation rests most on the combination of brand segmentation, exclusive destinations and integrated Alaska land-and-sea operations, while leverage, fuel, regulation, weather and travel-demand disruptions remain material operating constraints. Our reading: Measured fleet additions, ship upgrades and destination capacity are the main disclosed routes to expand the business.