Carnival reported higher profit and revenue in the latest quarter on the back of continued strong demand, even as oil prices remain elevated.

The cruise line on Tuesday posted net income of $1.92 billion, or $1.40 a share, for its three months ended Aug. 31, up from $1.85 billion, or $1.33 a share, a year earlier.

Stripping out certain one-time items, earnings came in at $1.43 a share. Analysts polled by FactSet expected adjusted earnings of $1.35 a share.

Third-quarter total revenue climbed 3.5% to $8.44 billion, topping Wall Street models for $8.39 billion.

Shares were trading 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 said accelerating demand, coupled with continued cost discipline, drove the company's fiscal third-quarter results ahead of its expectations.

"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 a strong foundation for the year ahead.

For the remainder of 2026, Carnival guided for adjusted earnings of 20 cents a share in its fiscal fourth quarter, slightly below analyst views for 24 cents a share. Net yields, or the money it makes from passengers, are expected to climb 2.3%, ahead of estimates for a 1% increase.

Fuel expenses are now projected to total $2.25 billion for the year, up from a prior forecast of $2.12 billion. The new outlook comes as oil prices remain elevated, though benchmarks pulled back from earlier highs after Saudi Arabia's state supplier reopened a key distribution point.