Carnival surges 8.9% on record earnings and strong demand

Carnival shares jumped 8.9% after the cruise operator beat Wall Street expectations for its third quarter and raised its full-year guidance on September 29, 2026.

The company reported adjusted earnings per share of $1.43, ahead of the $1.35 analyst consensus. Revenue reached $8.44 billion, exceeding expectations of $8.39 billion. Record net yields in constant currency grew 2.4% year over year, surpassing June guidance by more than one percentage point. Adjusted cruise costs excluding fuel per available lower berth day rose 1.8% in constant currency, which was one percentage point better than forecast.

Carnival lifted its full-year adjusted net income outlook by more than $150 million compared to its June forecast, even after absorbing $150 million in higher fuel expenses. Customer deposits reached a third-quarter record of $7.6 billion, up nearly 7% from the prior year despite flat capacity. The company noted that booked occupancy and pricing for the full year 2027 stand at record levels.

For the fourth quarter of 2026, Carnival anticipates net yields in constant currency will climb roughly 1.7% from 2025 levels. For full-year 2026, the cruise operator forecasts adjusted earnings per share of approximately $2.24 and adjusted EBITDA of roughly $7.14 billion.

Chief Financial Officer David Bernstein said Carnival redeemed $500 million of 7% coupon notes during the quarter using cash on hand. In the same period, S&P upgraded Carnival's credit rating, making it the second agency to return the cruise operator to investment grade.