Carnival PLC's stock plunged 5.03% during intraday trading on Friday. The sharp decline followed the cruise operator's announcement of a reduced full-year profit forecast, primarily driven by significantly higher fuel expenses.

The company lowered its adjusted earnings per share guidance for fiscal 2026 to approximately $2.21, down from a prior forecast of $2.48 and below analyst expectations. Management cited escalating fuel costs, exacerbated by geopolitical tensions in the Middle East disrupting oil supply routes, as a major headwind exceeding $500 million compared to previous estimates.

While Carnival reported better-than-expected first-quarter results and highlighted strong customer demand with record bookings, investors focused on the downward revision to both full-year and second-quarter profit guidance, leading to the sell-off in the company's shares.