By Connor Hart
Carnival said extreme geopolitical volatility has disrupted bookings, and the company issued a soft outlook for the current quarter as higher fuel costs continue to weigh on profit.
The cruise line said Tuesday that booking trends during the recent quarter were most disrupted across Europe, particularly in the Mediterranean region.
Chief Executive Josh Weinstein said that strong demand and spending trends across Carnival's overall portfolio helped to offset the disruption.
Revenue climbed 5.3% to $6.66 billion in the recent period but came in below Wall Street models for $6.69 billion. At the same time, profit slipped as Carnival's cost-cutting efforts were unable to fully offset higher fuel costs.
Shares fell 7.3%, to $27.96, on Tuesday, extending their 9.7% decline so far this year.
Looking ahead, Carnival guided for slightly lower fuel costs in the remainder of 2026, as oil prices have fallen recently. The company said it now expects to pay $2.12 billion for fuel this year, down from a prior forecast of $2.15 billion.
Lower fuel prices, coupled with cost-cutting efforts, gave Carnival confidence to lift its full-year adjusted earnings outlook by a penny, to $2.22 a share. Analysts polled by FactSet expected adjusted earnings of $2.23 a share.
For the current quarter, Carnival guided for adjusted earnings of $1.35 a share, missing analyst views for $1.42 a share.
The company reported a profit of $537 million, or 39 cents a share, in its fiscal second quarter, compared with $565 million, or 42 cents a share, a year earlier. Stripping out one-time items, adjusted earnings were 41 cents a share, ahead of projections for 34 cents a share.
Weinstein said he remains optimistic on Carnival's outlook, as the company is 93% booked for the remainder of 2026 and on track for record net yields in the back half of the year.
"Looking further out, demand for 2027 and beyond remains strong," he added.
Write to Connor Hart at connor.hart@wsj.com
(END) Dow Jones Newswires
June 23, 2026 10:26 ET (14:26 GMT)
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