AI Takeaway
CCL delivered a strong Q1 FY2026 with revenue rising 6.1% YoY to $6.17B and net income swinging to $258M from a prior-year loss of $78M, reflecting continued recovery in cruise demand and improving operational leverage.
Revenue
$6.17B
++6.11% YoY
EPS (Basic)
$0.19
++416.67% YoY
Operating Income
$607M
++11.79% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Total revenue increased 6.1% YoY to $6.165B in Q1 FY2026, up from $5.810B in Q1 FY2025, signaling sustained consumer appetite for cruise travel and stronger onboard spending.
Source: Source: 10-Q Income Statement, Q1 FY2026
Net income surged to $258M from a loss of $78M in the prior year period, a 430.8% improvement, demonstrating meaningful progress in cost management and revenue yield enhancement.
Source: Source: 10-Q Income Statement, Q1 FY2026
Operating margin improved to 9.85% from 9.35% in Q1 FY2025, with operating income growing 11.8% YoY to $607M, outpacing revenue growth and indicating positive operating leverage.
Source: Source: 10-Q Income Statement & Key Ratios, Q1 FY2026
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Upgrade to unlockCCL carries $26.0B in long-term debt as of Q1 FY2026, representing a significant financial obligation relative to its asset base. While debt has declined 6.2% YoY, the interest expense burden continues to constrain net profitability and limits financial flexibility in a downturn.
Source: Source: 10-Q Balance Sheet, Q1 FY2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.20 versus the $0.19 analyst consensus — a +7.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.17B | $5.81B | +6.11% |
Operating Income | $607M | $543M | +11.79% |
Net Income | $258M | $-78M | +430.77% |
EPS (Basic) | $0.19 | $-0.06 | +416.67% |
EPS (Diluted) | $0.19 | $-0.06 | +416.67% |
SG&A Expense | $924M | $848M | +8.96% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $51.57B | $48.53B | +6.25% |
Current Assets | $3.72B | $2.98B | +24.82% |
Current Liabilities | $12.42B | $11.58B | +7.27% |
Stockholders' Equity | $13.03B | $9.18B | +41.92% |
Cash & Equivalents | $1.42B | $833M | +70.95% |
Long-Term Debt | $26B | $27.71B | -6.16% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $1.26B | $925M | +36.54% |
Investing Cash Flow | $-597M | $-605M | +1.32% |
Financing Cash Flow | $-1.17B | $-690M | -68.99% |
Dividends Paid | $208M | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 9.8% | 9.3% | +0.50% |
Net Margin | 4.2% | — | — |
ROE | 2.0% | — | — |
ROA | 0.5% | — | — |
Current Ratio | $0.299 | — | — |
CCL posted Q2 FY2026 revenue of $6.66B (+5.3% YoY), but operating income fell 8.9% to $851M as higher SG&A costs compressed margins, while the company continued deleveraging with long-term debt down 8.6% to $25.57B.
CCL delivered strong FY2025 results with revenue rising 6.4% to $26.6B and net income surging 44.1% to $2.76B, driven by improved operating leverage and continued demand recovery in the cruise industry.
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CCL reported Q1 FY2026 EPS of $0.19 (basic and diluted), a dramatic improvement from -$0.06 in Q1 FY2025. Net income came in at $258M versus a prior-year loss of $78M, representing a 430.8% YoY improvement in profitability.
CCL's revenue grew 6.1% YoY to $6.165B in Q1 FY2026, up from $5.810B in Q1 FY2025. This growth reflects continued recovery in cruise demand and stronger onboard revenue contributions.
The key takeaways are a return to meaningful profitability ($258M net income), operating margin expansion to 9.85%, and a 36.5% surge in operating cash flow to $1.263B. CCL also continued deleveraging, reducing long-term debt by 6.2% YoY to $26.0B.
Based on the financial data, the most prominent risks include CCL's high long-term debt of $26.0B, a very low current ratio of 0.30 indicating potential short-term liquidity pressure, and SG&A costs growing at 9.0% — faster than revenue growth of 6.1%. These factors could limit the pace of further profitability improvement.
CCL's financial health is improving but still carries notable risks: the company is profitable with $258M net income and strong operating cash flow of $1.263B, but its current ratio of 0.30 and $26.0B in long-term debt remain significant concerns. Stockholders' equity has grown 41.9% YoY to $13.0B, signaling balance sheet strengthening over time.