Carnival Corp. reports record financial metrics in fiscal 2025, with strong momentum heading into 2026. Despite potential macro headwinds, shares trade cheaper than S&P 500, offering valuation upside. The company’s cruise industry leadership and financial recovery post-COVID-19 reflect a positive outlook for investors.

Carnival’s stock price has risen 180% over the past 36 months, suggesting continued momentum. The company’s revenue and adjusted net income have reached record levels, driven by onboard spending growth. With $7.2 billion in customer deposits and strong demand, Carnival is positioned for future success in the travel industry.

Expansion of product and service offerings, such as private destinations like Celebration Key and Ensenada Bay Village, enhance Carnival’s unique guest experiences. Financial performance improvements have led to a cleaner balance sheet, despite a significant debt burden.

Carnival’s current valuation, trading at a P/E ratio of 14.7, offers potential upside compared to the S&P 500. The company’s strong fundamentals, along with a favorable economic environment for travel, make a $40 stock price achievable in 2026.

Investors considering Carnival stock should be aware that it wasn’t one of the 10 best stocks identified by The Motley Fool Stock Advisor team. However, historical returns show significant potential for long-term growth. Stock Advisor’s total average return of 955% outperforms the S&P 500, making it a valuable resource for investors.

Read more at Yahoo Finance: Can Carnival Stock Reach $40 in 2026?