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(Sharecast News) - Cruise operator Carnival lifted its annual profit guidance on Monday as it pointed to strong demand and posted record third-quarter results.
The company hailed record third-quarter net income of $1.9bn, or $1.33 diluted earnings per share, up $116m on the same period a year earlier and surpassing the previous record set in 2019.
Adjusted EBITDA came in at a record $3bn and revenue rose by more than $250m from a year earlier to a record $8.2bn.
Carnival said it now expects full-year adjusted earnings of $2.93bn, or $2.14 a share, up from previous guidance of $2.69bn, or $1.97 a share. This was the third quarter in a row that it lifted guidance, citing improved net yields and effective cost and balance sheet management.
Chief executive Josh Weinstein said: "This was a phenomenal quarter delivering all-time high net income and our tenth consecutive quarter of record revenues. Strong demand and onboard spending drove a 4.6% improvement in net yields (in constant currency), all of which was achieved on a same ship basis."
He added: "Since May, booking trends have continued to strengthen with higher booking volumes than last year and far outpacing capacity growth. This momentum affirms the success of our brands' demand generation efforts and the amazing experiences we continue to deliver, driving excess demand and ongoing pricing strength.
"With nearly half of 2026 booked, which is in line with 2025 record levels (at the same time last year) but now at historical high prices (in constant currency) for both our North America and Europe segments, we have built a strong base of business for next year. Looking further ahead, 2027 is already off to a great start, achieving record booking volumes during the third quarter."
At 1720 BST, the shares were down 4.4% at $29.26.
Chris Beauchamp, chief market analyst at IG, said: "Investors have chosen to disembark cruise titan Carnival despite a boost to its full-year outlook.
"The story echoes so much of the US stock market at present - a strong recovery from April's panic low, and new multi-year highs, but as concerns mount about the outlook for consumer spending, stocks like Carnival are going to find it harder to keep the market on board with its positive narrative."