Carnival Posts Record $1.9 Billion Profit as 2027 Bookings Hit New High

Carnival Corporation reported record third-quarter revenue and net income on Tuesday as strong cruise demand and lower-than-expected operating costs helped offset a sharp increase in fuel expenses.

The cruise giant posted net income of $1.9 billion for the quarter, with adjusted net income reaching $2.0 billion. Revenue rose to a record $8.4 billion, while adjusted EBITDA came in at $3.0 billion.

The results came despite a $131 million negative impact from higher fuel prices and currency movements. Carnival said diluted earnings were $1.40 per share, with adjusted earnings of $1.43 per share.

“We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations,” Chief Executive Officer Josh Weinstein said.

Demand indicators remained strong heading into 2027. Carnival said both booked occupancy and pricing for next year are at record levels, while booking volumes during the quarter ran well ahead of last year despite limited capacity growth.

Customer deposits reached a third-quarter record of $7.6 billion, up about $500 million from the previous record. Carnival said 2028 bookings are also running ahead of last year’s pace at higher occupancy and prices.

Higher energy costs remain one of the biggest pressures on the business. Gross margin yields declined 1.3% from a year earlier, primarily because of fuel, while cruise costs per available lower berth day increased 4.2%.

Still, net yields in constant currency rose 2.4%, more than a percentage point above Carnival’s June guidance. Fuel consumption per available lower berth day improved 3.8%.

The company also pointed to disruption from the Middle East conflict as a continuing cost factor, citing elevated logistics expenses in its full-year cost outlook.

Carnival now expects operational improvements to add more than $150 million to adjusted net income compared with its June guidance, enough to overcome an estimated $150 million hit from increased fuel prices. Full-year adjusted net income is forecast at approximately $3.08 billion, with adjusted EBITDA of about $7.14 billion.

For the fourth quarter, Carnival expects net yields in constant currency to increase about 1.7% from last year’s record levels.

The stronger results are also feeding through to Carnival’s balance sheet. The company has repurchased approximately $1.2 billion of shares this year, including nearly $800 million since the start of the third quarter, while paying $618 million in dividends.

Carnival also redeemed $500 million of 7% notes during the quarter. S&P upgraded the company’s credit rating to investment grade, making it the second ratings agency to do so and leaving Carnival with no remaining secured debt.

Shares jumped following the results, with investors focusing on the earnings beat and strength of bookings for 2027.

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