Carnival Corporation is set to report its Q1 2026 earnings on March 27, with fuel costs posing a significant risk due to the company being unhedged against commodity prices. Analyst Andrew Didora lowered Carnival's 2026 EPS forecast from $2.53 to $2.06 and cut EBITDA estimates by $650 million, citing elevated fuel prices. Despite this, demand remains strong, especially in Europe and Alaska, with net yields expected to rise 1.9% and cruise costs up 5.2%. The stock gained over 6% following a sharp drop in oil prices after geopolitical tensions eased, with a projected EPS of 17-18 cents for Q1. Looking ahead, Carnival's earnings are expected to normalize by 2027, with a positive outlook supported by fleet improvements and debt reduction.
