Norwegian Cruise Line Holdings Ltd. (NCLH) shares plummeted 7.92% during intraday trading on Monday. The sharp decline followed the company's release of its first-quarter 2026 financial results and a significant reduction to its full-year outlook.

The cruise operator cut its annual adjusted profit forecast to a range of $1.45 to $1.79 per share, down sharply from a prior forecast of $2.38 per share and well below analyst expectations. Management cited dual headwinds from the ongoing conflict in the Middle East, which has driven up fuel expenses as global oil prices surge, and signs of softer consumer demand as travelers reevaluate plans, particularly for European voyages.

While the company reported a first-quarter adjusted earnings beat, this was overshadowed by the downbeat guidance and a slight revenue miss. The company also noted it entered the year behind its optimal booking curve, and the current geopolitical and economic headwinds have hindered its ability to close that gap.