Carnival Corporation (CCL) just delivered the kind of earnings report that makes you wonder if anyone still remembers the pandemic. Record profit, record cash flow, and—here's the kicker—the dividend is back.

The cruise giant reported fourth-quarter net income of $422 million, or 31 cents per share, up nearly 40% from the same period last year. But the real story is in the adjusted numbers: adjusted net income came in at $454 million, or 34 cents per share, up 140% year-over-year and crushing guidance by more than $150 million. Strong demand and disciplined cost management did the heavy lifting.

That adjusted EPS of 34 cents beat analyst estimates by 9 cents. Revenue hit a fourth-quarter record of $6.33 billion, up $400 million from last year, though it came in just slightly below the $6.37 billion consensus. Adjusted EBITDA reached a record $1.5 billion, with margins expanding nearly 300 basis points. Gross margin yields jumped 16%, and net yields in constant currency climbed 5.4%, both ahead of the company's own guidance.

On the cost side, things stayed remarkably under control. Cruise costs per available lower berth day rose just 2.2%. Strip out fuel, and adjusted cruise costs per available lower berth day increased only 0.5%—a full 2.7 percentage points better than guidance. The company credited cost controls and favorable expense timing. Fuel consumption per available lower berth day actually fell 5.6%, which doesn't hurt either.

Customer deposits hit a fourth-quarter record of $7.2 billion, which tells you people are booking cruises with enthusiasm. For the full year 2025, net income reached $2.8 billion, while adjusted net income set a record at $3.1 billion—both up more than 60%. Revenue for the year came in at a record $26.6 billion, driven by those record net yields.

Operating income reached a record $4.5 billion, up 25%, and adjusted EBITDA rose to $7.2 billion, climbing over $1 billion year-over-year. Adjusted return on invested capital topped 13%, net debt to EBITDA stood at 3.4 times, and Fitch upgraded Carnival to investment grade. That last part matters—it's a stamp of approval that the company has truly turned the corner.

The Dividend Returns

After years without payouts, Carnival's board reinstated the quarterly dividend. The company declared 15 cents per share payable February 27, 2026, to shareholders of record as of February 13, 2026. It's a symbolic move as much as a financial one, signaling that management believes the recovery has staying power.

"We had record full-year net yields (in constant currency) and adjusted net income increased more than 60% driven by strong demand that outpaced unit cost increases. The momentum is carrying into 2026, which is shaping up to surpass even these remarkable results with another year of double-digit earnings growth and return on invested capital expected to exceed 13.5 percent, closing in on our 20-year high," said CEO Josh Weinstein.

What's Ahead for 2026

For the first quarter of 2026, Carnival expects adjusted earnings of 17 cents per share, just a penny short of the 18-cent estimate. Net yields in constant currency are projected to increase 1.6%, while adjusted cruise costs excluding fuel are expected to rise 5.9% due to expense timing.

For the full year 2026, the company forecasts adjusted earnings of approximately $2.48 per share, ahead of the $2.42 consensus estimate, with adjusted net income of $3.5 billion—a 12% increase on less than 1% capacity growth. Net yields in constant currency are expected to rise 2.5%. That's the kind of operating leverage investors dream about.

In a separate move, Carnival's board recommended unifying its dual-listed structure into a single NYSE-listed company, with incorporation shifting to Bermuda, subject to shareholder approval.

Price Action: CUK shares surged 16.72% to $30.72 at the time of publication on Friday, hitting a new 52-week high. CCL was up 9.07%.