Key Highlights
- Carnival (CCL) shares surged 13% on Tuesday, marking the strongest daily performance since April.
- Third quarter adjusted EPS reached $1.43, surpassing Wall Street’s consensus of $1.35.
- The company posted record quarterly revenue of $8.44 billion, exceeding analyst projections of $8.39 billion.
- Management increased full-year adjusted net income guidance by over $150 million.
- Bookings and pricing for 2027 voyages have already reached unprecedented levels.
Shares of Carnival Corporation (CCL) rallied 13% during Tuesday’s trading session, reaching approximately $24.96 following the cruise industry leader’s impressive third quarter financial results. The substantial gain represents the company’s most significant single-day percentage increase since April.
Carnival Corporation & plc, CCL
For the fiscal quarter that concluded on August 31, the cruise operator delivered adjusted earnings per share of $1.43. This performance exceeded analyst consensus estimates of $1.35.
The company’s quarterly revenue reached an all-time high of $8.44 billion, surpassing the $8.39 billion forecast by financial analysts.
Management announced an upward revision to its full-year adjusted net income forecast. The enhancement represents an improvement exceeding $150 million compared to the guidance issued in June.
This optimistic outlook adjustment was achieved even as the company absorbed an additional $150 million in fuel expenses throughout the year. Rigorous cost management initiatives successfully counterbalanced these inflationary pressures.
Unprecedented Performance Metrics and Future Bookings
Net revenue yields measured in constant currency expanded by 2% compared to the prior year period, establishing a new company benchmark. This performance exceeded the June guidance projection by over a full percentage point.
Adjusted cruise operating costs, when fuel expenses are excluded, increased 2% per available lower berth day in constant currency terms. This metric also came in a percentage point more favorable than previously guided.
Chief Executive Josh Weinstein highlighted that the quarter produced “record-breaking results across both revenue and profitability,” attributing the success to strengthening consumer demand and enhanced operational efficiency.
Customer advance deposits climbed to a third-quarter record of $7.6 billion. This represents a 7% year-over-year increase, remarkably achieved without any expansion in overall capacity.
Carnival reported that both occupancy rates and pricing for the complete 2027 calendar year have already achieved record-setting levels.
Financial Position and Forward Outlook
Chief Financial Officer David Bernstein disclosed that the company utilized available cash reserves to retire $500 million in debt securities that carried a 7% interest rate.
During the quarter, S&P elevated Carnival’s credit rating. This upgrade marked the second major ratings agency to restore the cruise operator to investment-grade status.
For the upcoming fourth quarter, Carnival anticipates net revenue yields in constant currency will increase approximately 2% versus the comparable 2025 period.
Regarding the complete 2026 fiscal year, management projects adjusted earnings per share of approximately $2.24. The company expects adjusted EBITDA to approach $7.14 billion.
Competing cruise line stocks also experienced gains on Tuesday. Royal Caribbean (RCL) advanced 7%, Norwegian Cruise Line (NCLH) climbed 5%, while Viking Holdings (VIK) showed minimal movement.
Notwithstanding Tuesday’s impressive rally, Carnival’s stock price remained down 21% year-to-date through Monday’s market close.
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