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Carnival and CarMax Report Strong Earnings, but Costs and Margins Still Matter

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Carnival and CarMax both reported higher year-over-year earnings on September 29, 2026, but their results point to different strengths and risks. Carnival posted record quarterly results and strong bookings while flagging higher fuel prices. CarMax lifted sales and earnings, while gross profit per vehicle declined. Their earnings releases do not establish how either stock moved, so the “pop” in the original headline cannot be quantified here.

What each company reported

Company and period Revenue and volume Profit Pressure point
Carnival Corporation, third quarter 2026 All-time-high revenue and constant-currency net yields; the release did not state a revenue figure in the cited results. $1.9 billion net income and $2.0 billion adjusted net income, both all-time highs. A spike in fuel prices, despite which Carnival said its full-year outlook improved.
CarMax, second quarter fiscal 2027 Net revenue of $7.9 billion, up 19.5%; combined retail and wholesale unit sales of 387,735, up 14.7%. Net earnings of $165.3 million versus $95.4 million a year earlier; diluted EPS of $1.16 versus $0.64, up 81.3%. Retail and wholesale gross profit per unit both fell year over year.

These figures come from each company’s September 29, 2026 earnings release: Carnival Corporation and CarMax. The businesses and fiscal periods differ, so their raw earnings figures are not directly comparable.

Why Carnival’s quarter stood out

Carnival said net income reached $1.9 billion and adjusted net income reached $2.0 billion, each an all-time high. It also reported all-time-high revenue and constant-currency net yields. CEO Josh Weinstein said, “We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations.” That is management’s characterization of the quarter, not independent verification of future performance.

Demand indicators and the outlook

Customer deposits reached a third-quarter record, nearly 7% above the prior-year record while capacity growth was flat. Carnival also reported record booked occupancy and pricing for 2027. These are company-reported booking positions, not guarantees that future bookings, occupancy, pricing, or earnings will meet expectations.

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Carnival said its full-year outlook reflected an operational improvement of more than $150 million in adjusted net income compared with its June guidance, despite a spike in fuel prices. That comparison is against earlier company guidance, not a year-over-year increase in reported earnings. The fuel-price pressure remains a relevant cost risk even with the improved outlook.

Why CarMax earnings rose—and what the margins show

CarMax reported fiscal second-quarter net revenue of $7.9 billion, 19.5% higher year over year, and combined retail and wholesale sales of 387,735 units, up 14.7%. Net earnings increased to $165.3 million from $95.4 million; diluted earnings per share rose to $1.16 from $0.64, an 81.3% increase.

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More sales did not mean more gross profit per vehicle

Retail used-vehicle gross profit per unit was $2,105, down $111 year over year. Wholesale gross profit per unit was $858, down $135. CarMax said pricing actions supported the improved sales trend but weighed on retail per-unit profit. In other words, sales volume improved while the gross profit earned on each retail used vehicle was lower. Wholesale volume also increased, while wholesale gross profit per unit declined.

CEO Keith Barr said, “Our strong second quarter results reflect solid execution and early progress against Shift into GEAR, our four-pillar strategy to strengthen CarMax’s core business and return the company to sustained growth.” This describes management’s view of strategy progress; it does not establish that sustained growth has been achieved.

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How to read the two earnings stories

  • Demand and volume: Carnival highlighted deposits, bookings, occupancy, and pricing; CarMax reported higher combined unit sales and revenue.
  • Profitability: Carnival reported record net and adjusted net income. CarMax reported higher net earnings and EPS, alongside lower gross profit per unit.
  • Cost and margin pressure: Carnival called out a fuel-price spike. CarMax’s pricing actions supported sales but reduced retail gross profit per unit, while wholesale gross profit per unit also fell.
  • Forward indicators: Carnival described its full-year outlook relative to June guidance and gave 2027 booking measures. CarMax’s CEO described early progress on a growth strategy, which is management commentary rather than proof of future results.

The releases support a comparison of those operating signals, but they do not establish either company’s share-price move or the time window behind a stock “pop.” A price-performance claim would require market data matched to a stated comparison period.

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