Why Is Carnival Stock Down 26% This Year?

One of the travel industry's more remarkable turnaround stories is starting to take on water. Shares of Carnival Corp. (NYSE: CCL) have declined 26% in 2026. Smaller rivals Royal Caribbean and Norwegian Cruise Line are down 8% and 34%, respectively.

It's been a disappointing year, but Carnival and its peers have seen worse. The country's three largest ocean cruise liners were effectively shut down for more than a year in the wake of the COVID-19 crisis. It took another year after that to ramp up to full operations. Despite the obstacles, Carnival is generating record top-line results. Its trailing revenue of $27.3 billion is more than 30% above its pre-pandemic high-water mark of fiscal 2019.

Carnival keeps growing. It reinstated its dividend. It has rattled off a dozen consecutive earnings beats. Unfortunately for Carnival investors, like its ships, those on board are looking more at where the vessel is heading than where it's been. With another Wall Street pro issuing a cautious analyst note this week, let's look at some reasons why Carnival is out of favor -- and why it may even be a buying opportunity.

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