Updated Version 2 - Carnival Corporation Raises Annual Profit Forecast Due to Strong Demand

Updated stock price data, added peer stock prices, included charts, detailed earnings forecasts in the third paragraph, and supplemented background information in the sixth and seventh paragraphs.

Reuters, September 29 - Cruise operator Carnival Corp on Tuesday raised its annual profit forecast and reported record-breaking booking volumes for 2027, indicating robust demand despite geopolitical uncertainties. As a result, its share price surged nearly 13%.

Despite ongoing conflict in the Middle East casting a shadow over the economic outlook, the company continues to benefit from affluent travelers prioritizing experiences—especially those enthusiastic about cruising and “bucket list” adventures.

Carnival is the only major U.S. cruise company that typically does not engage in fuel hedging. Driven by stronger pricing, lower operating costs, and improved fuel efficiency—which offset the impact of rising fuel prices—the company lifted its full-year profit target by more than $150 million above its June forecast.

The company now expects adjusted earnings per share of about $2.24 for 2026, up from its previous forecast of approximately $2.22.

“Throughout the quarter, our booking trends remained strong, with volumes significantly above last year and far exceeding capacity growth. This momentum highlights the effectiveness of our demand generation initiatives and the enduring appeal of our cruise brands,” CEO Josh Weinstein said.

Cruise operators are heavily dependent on fuel and marine diesel. With ongoing US-Iran conflict, market concerns over potential supply disruptions have increased, presenting a more challenging operating environment.

To protect margins, most cruise operators—including Carnival and Royal Caribbean (Royal Caribbean RCL.N)—have raised ticket prices while rolling out affordable new attractions and entertainment options to draw more customers.

Following Carnival's better-than-expected third-quarter results, peer cruise operator Royal Caribbean saw its share price rise 6%, while Norwegian Cruise Line NCLH.N shares climbed 5%.

According to data compiled by London Stock Exchange Group (LSEG), Carnival reported quarterly revenue of $8.44 billion for the period ending August 31, exceeding analysts’ average estimate of $8.30 billion.

On an adjusted basis, the company’s quarterly earnings per share was $1.43, beating analysts’ expectations of $1.36.

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