Carnival Q2 2026 earnings: stock sinks on weak summer forecast

Carnival Corporation reported grounds second-quarter gross and adjusted nett income connected Monday but forecast third-quarter nett beneath expert expectations, sending Carnival banal down astir 8% successful aboriginal trading.

The institution posted gross of $6.66 cardinal and adjusted nett income of $569 cardinal for the 4th ended May 31, some second-quarter records. Adjusted net per stock came successful astatine $0.41, up much than 15% from the anterior year. Analysts had expected net of $0.34 per stock connected gross of $6.7 billion, according to Barron's. Revenue fell somewhat abbreviated of that estimate.

Third-quarter adjusted EPS guidance came successful astatine astir $1.35, a fig that fell abbreviated of the $1.42 statement estimate, according to Reuters. Full-year adjusted EBITDA guidance was trimmed to astir $7.11 billion, down from a erstwhile people of $7.19 billion, portion the full-year adjusted EPS outlook edged up by conscionable a penny to $2.22.

CEO Josh Weinstein pointed to geopolitical pressures arsenic a cardinal headwind, peculiarly for Mediterranean bookings. "Our booked presumption for the 2nd fractional of 2026 is higher than past year, astatine historically precocious prices (in changeless currency), contempt navigating much than a afloat 4th of utmost geopolitical volatility that chiefly impacted booking trends for our European deployments, peculiarly successful the Mediterranean region, which were closest successful proximity to the struggle successful the Middle East," Weinstein said successful a statement.

Carnival, which does not typically hedge fuel, said substance costs roseate astir 30% during the quarter, with substance outgo per metric ton reaching $793, up from $614 successful the aforesaid play a twelvemonth earlier. Fuel depletion per disposable little berth time improved 5.6%, partially offsetting the terms increase, the institution said.

On the request side, Carnival noted that astir 93% of its full-year capableness has already been sold, leaving less berths disposable compared with the equivalent constituent successful 2025. Customer deposits reached an all-time precocious of $9.0 billion, surpassing the anterior twelvemonth grounds by much than $450 million. The institution besides said it has repurchased much than $450 cardinal successful banal and paid $414 cardinal successful dividends truthful acold this year.

Fellow cruise operators felt the unit arsenic well, with Royal Caribbean dropping astir 5% and Norwegian Cruise Line Holdings sliding astir 2%. The cruise assemblage has faced unit from elevated substance costs tied to the Middle East conflict. Norwegian Cruise Line slashed its full-year nett outlook earlier this year, citing rising substance costs and weaker request for European travel.