Carnival Corporation (CCL) stock is priced at 11.6 times earnings, against 22.5 for the S&P 500. Even at that valuation, investors must watch how the cruise operator uses its cash. Executive priorities are shifting.
Carnival Corporation (CCL) stock is priced at 11.6 times earnings, against 22.5 for the S&P 500.
Even at that valuation, investors must watch how the cruise operator uses its cash.
Executive priorities are shifting.
Carnival Corporation (CCL) stock is priced at 11.6 times earnings, against 22.5 for the S&P 500. Even at that valuation, investors must watch how the cruise operator uses its cash. Executive priorities are shifting. During the fiscal Q4 2024 call, management stressed paying down debt to rebuild the company’s finances. Now it emphasizes something else. So what is it?
Carnival Now Talks Up Buying Back Its Shares
Management is now making the case for buying back Carnival’s stock. During the fiscal Q3 2026 call, executives noted that just six months into its share repurchase program, the company had already bought back about $1.2 billion of stock.
During the fiscal Q4 2024 call, management framed paying down debt as a way to transfer value from lenders back to shareholders. The messaging evolved. By the fiscal Q3 2025 call, the company stated that “debt reduction no longer has to be priority one, two, and three.”
Management remains focused on rewarding shareholders. Previously, executives planned to do so through debt reduction. Today, they talk up buying back stock, though Carnival did use cash on hand to redeem $500 million of notes during fiscal Q3 2026.
Has Carnival Paid Down Enough Debt?
Carnival has retired enough obligations to earn investment-grade ratings, but its debt load remains substantial. Total debt sits below $24 billion, compared to a peak of $36 billion in 2023, management noted on the fiscal Q3 2026 call. That represents a decline of about a third.
Averytin News Financial update.