Carnival Cruise Line Posts Higher Profit and Revenue as Demand Keeps Heating Up

Deep News
Sep 30

Third-quarter total revenue climbed 3.5% to $8.44 billion.

Backed by persistently robust demand, Carnival Cruise Line reported growth in both profit and revenue.

Summary

Driven by continuously strong market demand, Carnival Cruise Line posted third-quarter net income of $1.92 billion, compared with $1.85 billion a year earlier.

Even with oil prices staying elevated, Carnival Cruise Line achieved growth in both profit and revenue in the third quarter, relying on sustained strong demand.

The cruise operator reported on Tuesday that net income for the three months ended August 31 (its fiscal quarter) came to $1.92 billion, or $1.40 per share, versus net income of $1.85 billion, or $1.33 per share, in the same period last year.

Excluding certain one-time items, earnings per share were $1.43. Analysts surveyed by FactSet had previously expected adjusted earnings per share of $1.35.

Third-quarter total revenue rose 3.5% year over year to $8.44 billion, above Wall Street's expectation of $8.39 billion.

Shortly after the opening bell, the stock rose 10% to $24.34. Despite that day's sharp gain, the shares are still down more than 20% year to date.

Chief Executive Officer Josh Weinstein said accelerating demand recovery, combined with continued strict cost control, drove the company's results this fiscal quarter beyond expectations.

"Booking trends continued to improve throughout the fiscal quarter, with bookings well above last year and growing far faster than capacity expansion," Weinstein said.

He added that booked occupancy and pricing for 2027 have both reached record highs, laying a solid foundation for next year's performance.

For the remainder of 2026, Carnival guided fourth-quarter adjusted earnings per share of $0.20, slightly below analysts' expectation of $0.24.

Net yield (unit revenue from passengers) is expected to improve 2.3%, above the market's expectation of 1% growth.

Affected by high oil prices, the company raised its full-year fuel cost forecast to $2.25 billion, up from a previous estimate of $2.12 billion.

However, after Saudi Arabia's state-owned supplier reopened a key oil supply hub, the international oil price benchmark has pulled back somewhat from its earlier highs.

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