Carnival Raises Full-Year Outlook After Record Third Quarter
The cruise operator posted $8.44 billion in revenue and lifted 2026 adjusted net income guidance by more than $150 million versus June.
Carnival Corporation (CCL), the largest global cruise company, reported all-time high third-quarter revenue of $8.44 billion and net income attributable to Carnival Corporation Ltd. of $1.92 billion, and raised its full-year 2026 adjusted net income outlook by more than $150 million from June guidance.
The operational improvement overcame a $150 million impact from higher fuel prices, with gains in net yields, adjusted cruise costs excluding fuel per available lower berth day (ALBD), and fuel consumption per ALBD. Adjusted net income was $1.96 billion. Diluted earnings were $1.40 a share and adjusted earnings were $1.43 a share, in line with the year-earlier period despite a $0.10 ($131 million) unfavorable net impact from fuel prices and currency rates.
Adjusted EBITDA was $3.0 billion, matching last year’s historic high and $110 million better than June guidance.
Net yields in constant currency rose 2.4 percent, more than a point above June guidance. Gross margin yields fell 1.3 percent on higher fuel prices. Cruise costs per ALBD increased 4.2 percent. Adjusted cruise costs excluding fuel per ALBD in constant currency rose 1.8 percent, one point better than June guidance. Fuel consumption per ALBD improved 3.8 percent. Fuel expense was $615 million, versus $451 million a year earlier, with fuel cost per metric ton consumed excluding emission allowances at $826 versus $607. ALBDs were 24.9 million and occupancy was 111.8 percent.
Chief Executive Officer Josh Weinstein said the company delivered another quarter of top- and bottom-line records, with accelerating demand and stronger cost discipline driving results ahead of expectations. Booking volumes were meaningfully ahead of last year and far outpaced capacity growth.
Customer deposits reached a third-quarter record of $7.6 billion, surpassing the prior-year record by $0.5 billion despite flat capacity growth over the next twelve months. For full-year 2027, booked occupancy and pricing are at record levels. Weinstein said 2028 is also off to an excellent start, at higher occupancy and prices than last year.
For the full year 2026, Carnival expects net yields in constant currency up approximately 2.3 percent versus record 2025 levels, 0.5 percentage points better than June guidance, and adjusted cruise costs excluding fuel per ALBD in constant currency up approximately 2.2 percent. For the fourth quarter of 2026, it expects net yields in constant currency up approximately 1.7 percent versus 2025 record levels and adjusted cruise costs excluding fuel per ALBD up approximately 1.9 percent. Fourth-quarter adjusted EBITDA is expected at approximately $1.30 billion and adjusted net income at approximately $274 million. Full-year 2026 adjusted EBITDA is expected at approximately $7.14 billion and adjusted net income at approximately $3.08 billion.
The company completed approximately $1.2 billion of share repurchases year to date, including nearly $800 million since the beginning of the third quarter, and redeemed $500 million of seven percent coupon notes. It distributed $204 million in dividends during the quarter, bringing the year-to-date total to $618 million. S&P upgraded Carnival’s credit rating, making it the second rating agency to award an investment-grade rating; Carnival has no remaining secured debt. Chief Financial Officer David Bernstein said the company continues to expect year-over-year improvement in its balance sheet and leverage metrics.
Carnival Cruise Line launched its Carnival Rewards loyalty program on September 1. Co-branded credit card issuances increased over 300 percent in the weeks following launch compared with pre-announcement levels. Celebration Key welcomed almost 2.5 million guests during its first year. Carnival Cruise Line unveiled Carnival Destiny, arriving in 2029, the first ship in its next-generation Ace class.
The company is putting increasingly durable cash flow to work, reinvesting in the business while returning more capital to shareholders. Enhanced demand generation against intentionally measured capacity growth positions it to continue driving higher returns.