Carnival shares fall as Q3 outlook misses estimates despite earnings beat

Carnival Corp (NYSE:CCL) shares fell astir 6% connected Tuesday aft the cruise relation issued a 3rd 4th nett outlook beneath Wall Street expectations, overshadowing stronger-than-expected second-quarter results and grounds revenue.

The institution reported adjusted net of $0.41 per stock for the 4th ended May 31, up of analysts' estimates of $0.33 per share.

Revenue roseate to a grounds $6.7 billion, somewhat supra the statement forecast of $6.68 billion.

Net income attributable to Carnival reached $537 million, portion adjusted nett income climbed much than 20% twelvemonth implicit twelvemonth to a grounds $569 million. Adjusted EBITDA besides deed a grounds $1.6 billion.

Carnival said lawsuit deposits reached an all-time precocious of $9 billion, up much than $450 cardinal from the erstwhile year's record, portion bookings for the remainder of 2026 stay up of past twelvemonth astatine historically precocious prices.

For the 3rd quarter, Carnival expects adjusted net of $1.35 per share, beneath analysts' expectations of $1.42. The institution projected full-year 2026 adjusted net of $2.22 per share, besides beneath the statement $2.23.

Carnival CEO Josh Weinstein said the institution delivered its "twelfth consecutive 4th of grounds nett yields" contempt "extreme geopolitical headwinds and astir 30% higher substance costs."

The institution said booking trends for Mediterranean itineraries were affected by the prolonged struggle successful the Middle East, prompting it to prioritize pricing implicit occupancy. Carnival noted that it is 93% booked for 2026, with little inventory remaining for merchantability than astatine the aforesaid constituent past year.

Weinstein said caller booking trends bespeak the institution is opening to spot "a reversal of these headwinds," adding that request for 2027 and beyond continues to tally up of prior-year levels.

For 2026, Carnival expects nett yields to summation astir 3.2% from 2025 levels and adjusted cruise costs excluding substance per disposable little berth time to emergence astir 3.7%. The institution said elevated logistics costs linked to disruptions from the Middle East struggle are incorporated into its outlook.