AI Takeaway
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.
Revenue
$6.66B
++5.29% YoY
EPS (Basic)
$0.39
-9.30% YoY
Operating Income
$851M
-8.89% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue rose 5.3% YoY to $6.66B in Q2 FY2026, reflecting continued strong consumer demand for cruise travel. This top-line growth demonstrates the resilience of the cruise industry's recovery trajectory.
Source: Source: 10-Q Income Statement
Operating margin contracted approximately 2 percentage points YoY to 12.8%, as SG&A expenses grew 5.8% to $863M — outpacing revenue growth and pressuring profitability despite higher revenues.
Source: Source: 10-Q Income Statement
Long-term debt declined 8.6% YoY to $25.57B, reflecting CCL's ongoing commitment to reducing its pandemic-era debt load. Stockholders' equity surged 29.6% YoY to $12.97B, signaling improving balance sheet health.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockWith $25.57B in long-term debt and a current ratio of only 0.33, CCL carries significant financial risk. Current liabilities of $13.43B far exceed current assets of $4.49B, meaning the company relies heavily on operating cash flows and refinancing to meet near-term obligations.
Source: Source: 10-Q Balance Sheet
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Upgrade to unlockReported EPS of $0.41 versus the $0.35 analyst consensus — a +17.3% beat for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.66B | $6.33B | +5.29% |
Operating Income | $851M | $934M | -8.89% |
Net Income | $537M | $565M | -4.96% |
EPS (Basic) | $0.39 | $0.43 | -9.30% |
EPS (Diluted) | $0.39 | $0.42 | -7.14% |
SG&A Expense | $863M | $816M | +5.76% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $52.23B | $51.16B | +2.08% |
Current Assets | $4.49B | $4.35B | +3.29% |
Current Liabilities | $13.43B | $12.92B | +3.98% |
Stockholders' Equity | $12.97B | $10.01B | +29.59% |
Cash & Equivalents | $2.24B | $2.15B | +4.52% |
Long-Term Debt | $25.57B | $27.97B | -8.57% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $3.89B | $3.32B | +17.37% |
Investing Cash FlowYTD | $-1.48B | $-1.19B | -24.35% |
Financing Cash FlowYTD | $-2.1B | $-1.21B | -73.74% |
Dividends PaidYTD | $414M | $0 | — |
Share BuybacksYTD | $381M | $0 | — |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 12.8% | 14.8% | -1.99% |
Net Margin | 8.1% | — | — |
ROE | 4.1% | — | — |
ROA | 1.0% | — | — |
Current Ratio | $0.334 | — | — |
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.
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 Q2 FY2026 revenue of $6.66B, up 5.3% YoY, but net income declined 5.0% to $537M as SG&A expenses rose 5.8% to $863M. Diluted EPS came in at $0.39, down from $0.42 in the prior-year quarter.
Operating income dropped 8.9% YoY to $851M because SG&A expenses grew 5.8% to $863M, outpacing the 5.3% revenue increase and compressing the operating margin from 14.8% to 12.8%. This cost pressure is the primary driver of the profitability gap between revenue growth and earnings growth.
Yes — CCL's long-term debt fell 8.6% YoY to $25.57B, reflecting active deleveraging efforts. Stockholders' equity simultaneously grew 29.6% to $12.97B, indicating meaningful balance sheet improvement.
Yes, CCL paid $414M in dividends and repurchased $381M in shares on a fiscal year-to-date basis through Q2 FY2026, compared to zero in the same period last year, signaling management's confidence in the company's cash generation.
CCL's financial health is improving but still carries risks: the current ratio is a low 0.33 (current liabilities of $13.43B far exceed current assets of $4.49B), and long-term debt remains elevated at $25.57B. However, YTD operating cash flow of $3.89B (+17.4% YoY) and ongoing deleveraging suggest the company is on a recovery path.