Carnival Corporation $CCL reported record second-quarter revenue and adjusted net income on Monday but forecast third-quarter profit below analyst expectations, sending Carnival stock down about 8% in early trading.
The cruise operator posted record second-quarter revenue and adjusted net income but guided third-quarter earnings below analyst expectations
Matt Blyth / Getty Images
Carnival Corporation $CCL reported record second-quarter revenue and adjusted net income on Monday but forecast third-quarter profit below analyst expectations, sending Carnival stock down about 8% in early trading.
The company posted revenue of $6.66 billion and adjusted net income of $569 million for the quarter ended May 31, both second-quarter records. Adjusted earnings per share came in at $0.41, up more than 15% from the prior year. Analysts had expected earnings of $0.34 per share on revenue of $6.7 billion, according to Barron's. Revenue fell slightly short of that estimate.
Third-quarter adjusted EPS guidance came in at roughly $1.35, a figure that fell short of the $1.42 consensus estimate, according to Reuters. Full-year adjusted EBITDA guidance was trimmed to roughly $7.11 billion, down from a previous target of $7.19 billion, while the full-year adjusted EPS outlook edged up by just a penny to $2.22.
CEO Josh Weinstein pointed to geopolitical pressures as a key headwind, particularly for Mediterranean bookings. "Our booked position for the second half of 2026 is higher than last year, at historically high prices (in constant currency), despite navigating more than a full quarter of extreme geopolitical volatility that primarily impacted booking trends for our European deployments, particularly in the Mediterranean region, which were closest in proximity to the conflict in the Middle East," Weinstein said in a statement.
Carnival, which does not typically hedge fuel, said fuel costs rose nearly 30% during the quarter, with fuel cost per metric ton reaching $793, up from $614 in the same period a year earlier. Fuel consumption per available lower berth day improved 5.6%, partially offsetting the price increase, the company said.
On the demand side, Carnival noted that roughly 93% of its full-year capacity has already been sold, leaving fewer berths available compared with the equivalent point in 2025. Customer deposits reached an all-time high of $9.0 billion, surpassing the prior year record by more than $450 million. The company also said it has repurchased more than $450 million in stock and paid $414 million in dividends so far this year.
Fellow cruise operators felt the pressure as well, with Royal Caribbean $RCL dropping roughly 5% and Norwegian Cruise Line $NCLH Holdings sliding around 2%. The cruise sector has faced pressure from elevated fuel costs tied to the Middle East conflict. Norwegian Cruise Line slashed its full-year profit outlook earlier this year, citing rising fuel costs and weaker demand for European travel.
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