Carnival Corporation (CCL) shares surged 13% on Tuesday, marking their strongest single-day gain since April, after the cruise operator reported third-quarter results ahead of Wall Street expectations. The stock traded near $24.96 following adjusted earnings per share of $1.43, compared with analyst estimates of $1.35. Revenue reached a record $8.44 billion, above the $8.39 billion consensus. Adjusted net income came in at $2.0 billion, beating the $1.86 billion estimate, while adjusted EBITDA was $3.0 billion versus the $2.93 billion forecast.
CEO Josh Weinstein said the quarter delivered “top and bottom line records,” citing accelerating demand and stronger cost control. Carnival raised its full-year adjusted net income guidance by more than $150 million despite an additional $150 million in fuel costs. Customer deposits hit a third-quarter record of $7.6 billion, up 7% year over year, and the company said booked occupancy and pricing for full-year 2027 are already at record levels. Net yields in constant currency rose 2% year over year, also a company record.
The company continued strengthening its balance sheet by redeeming $500 million of notes carrying a 7% coupon. S&P upgraded Carnival’s credit rating to investment grade during the quarter, making it the second ratings agency to do so. CFO David Bernstein highlighted the importance of using cash flow to reduce pandemic-era debt before costly refinancing terms take hold. Net interest expense for the quarter was $260 million, while fourth-quarter capital expenditures are projected at $1.2 billion. Rival cruise stocks also moved higher, with Royal Caribbean up 7% and Norwegian Cruise Line up 5%, though Carnival shares remain down roughly 15% to 21% year-to-date depending on the reference point.
