From Yahoo Finance: 2025-05-30 17:00:00

Carnival reported record revenue, operating income, and customer deposits in Q1, showing strong momentum. Management focuses on paying down debt. Shares trade at a discount to S&P 500. Despite pandemic struggles, the industry has rebounded, with Carnival shares up 120% in the last two years.

Revenue in Q1 of fiscal 2025 increased 7.5% to $5.8 billion, with record net yields and customer deposits. Cruise demand remains strong compared to other travel sectors. Carnival attracts younger and first-time cruisers, benefiting from perceived value.

Carnival’s operating income grew 97% to $543 million in Q1, marking a turnaround from previous losses. Analysts predict an 8.3% compound annual growth rate in operating income through fiscal 2027. The company reduced long-term debt to $27 billion, refinancing $5.5 billion to lower interest expenses.

Despite debt concerns, Carnival’s improving finances and low valuation make it an attractive investment. The management’s focus on debt reduction and credit upgrades are positive signs. Analysts predict an increase in operating income and smooth sailing ahead. Investors should consider adding Carnival stock to their portfolios.

Read more: 3 Reasons to Buy Carnival Stock Like There’s No Tomorrow