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

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

Carnival Corporation has reported another record quarter, posting $1.9 billion in net income and $8.4 billion in revenue as strong cruise demand and tighter cost management helped offset rising fuel expenses.

The company's third-quarter results, released September 29, showed adjusted net income of approximately $2.0 billion and adjusted EBITDA of $3.0 billion. Diluted earnings were $1.40 per share, while adjusted earnings reached $1.43 per share.

Carnival said the results exceeded its expectations despite a $131 million negative impact from higher fuel prices and currency movements. The company said continued demand strength and operating discipline were key drivers of the performance.

"We delivered another quarter of top and bottom-line records, with accelerating demand and even stronger cost discipline driving results ahead of our expectations," Carnival CEO Josh Weinstein said.

### 2027 Bookings Reach Record Levels

Carnival's outlook for future cruise demand remained strong.

The company said both booked occupancy and pricing for 2027 are at record levels. Booking volumes during the quarter also ran significantly ahead of the same period last year, despite limited growth in available capacity.

Customer deposits reached a third-quarter record of $7.6 billion, approximately $500 million above the previous record.

Demand is also extending further into the future, with Carnival reporting that 2028 bookings are running ahead of the previous year's pace at higher occupancy and prices.

The strong booking trend follows record booking activity reported by Carnival earlier in 2026, when the company said demand for 2027 and beyond was already exceeding prior-year levels.

### Fuel Costs Remain a Challenge

Higher energy costs continue to weigh on Carnival's operating performance.

Gross margin yields declined 1.3% from a year earlier, primarily because of higher fuel costs, while cruise costs per available lower berth day increased 4.2%.

Carnival nevertheless reported a 2.4% increase in net yields on a constant-currency basis, exceeding its June guidance by more than one percentage point.

The company also reduced fuel consumption per available lower berth day by 3.8%, reflecting ongoing efforts to improve fuel efficiency across its fleet.

Carnival said the continuing Middle East conflict is also contributing to higher logistics costs and remains a factor in its full-year cost outlook.

### Full-Year Outlook Improves

Carnival now expects operational improvements to contribute more than $150 million to adjusted net income compared with its June guidance.

The improvement is expected to offset an estimated $150 million impact from higher fuel prices.

The company is forecasting full-year adjusted net income of approximately $3.08 billion and adjusted EBITDA of about $7.14 billion.

For the fourth quarter, Carnival expects constant-currency net yields to increase approximately 1.7% from the same period last year.

### Share Buybacks and Debt Reduction

Strong operating results are also supporting Carnival's efforts to strengthen its balance sheet and return capital to shareholders.

The company has repurchased approximately $1.2 billion of its shares so far this year, including nearly $800 million since the beginning of the third quarter. It has also paid approximately $618 million in dividends.

During the quarter, Carnival redeemed $500 million of 7% notes.

S&P Global Ratings also upgraded Carnival's credit rating to investment grade, making it the second ratings agency to give the company an investment-grade rating. Carnival said it now has no remaining secured debt.

### Cruise Demand Remains Resilient

Carnival's latest results add to a series of strong operating performances. The company reported record revenue and record net yields in the second quarter, while customer deposits reached $9.0 billion and demand for 2027 and beyond remained above the previous year's levels.

The company's fiscal year runs through November 30, meaning the latest third-quarter results cover the June-August period. Carnival's investor-relations calendar confirms the third-quarter 2026 earnings release and conference call for September 29.

The latest figures suggest that cruise demand remains strong heading into 2027, although fuel prices, geopolitical disruption and operating costs continue to present challenges for the industry.