Carnival lifts full-year fuel expense forecast amid elevated oil prices
Carnival reported third-quarter net income of $1.92 billion, or $1.40 a share, for the three months ended Aug. 31, up from $1.85 billion, or $1.33 a share, a year earlier, the cruise operator said Tuesday. Stripping out certain one-time items, adjusted earnings came in at $1.43 a share, ahead of the $1.35 that analysts polled by FactSet had expected.
Total revenue for the quarter climbed 3.5% to $8.44 billion, topping Wall Street forecasts of $8.39 billion. The results marked a continuation of the accelerating demand for cruise vacations that executives have cited in recent quarters.
Shares were trading about 10% higher at $24.34 shortly after the opening bell. Despite the gain, the stock has lost more than a fifth of its value year to date.
Chief Executive Josh Weinstein attributed the results to a combination of accelerating demand and continued cost discipline. “Our booking trends continued to strengthen throughout the quarter, with volumes meaningfully ahead of last year and far outpacing capacity growth,” Weinstein said. Booked occupancy and pricing for 2027 are at record levels, he added, providing what he called a strong foundation for the year ahead.
For the remainder of fiscal 2026, Carnival guided to adjusted earnings of 20 cents a share in the fourth quarter, slightly below analyst expectations of 24 cents a share. Net yields — the revenue the company earns per passenger — are projected to climb 2.3%, ahead of estimates calling for a 1% increase.
The company raised its full-year fuel expense projection to $2.25 billion, up from a prior forecast of $2.12 billion. The higher outlook reflects elevated oil prices, though benchmarks pulled back from earlier highs after Saudi Arabia’s state supplier reopened a key distribution point.