Carnival Corporation reported Q1 sales of $6.16 billion, a 6% year-over-year increase surpassing estimates of $6.1 billion. The company’s earnings per share (EPS) rose to $0.20, exceeding expectations of $0.18 and compared to $0.13 per share a year ago. Despite the strong start in 2026, Carnival has adjusted its full-year EPS guidance down from $2.48 to $2.21 due to rising fuel costs and geopolitical tensions, particularly from the ongoing war in Iran.
In the last month, cruise stocks, including Carnival, Norwegian Cruise Line, and Royal Caribbean, have seen declines of more than 10%. The situation in the Middle East is exerting pressure on fuel prices, which have surpassed $100 a barrel, potentially dampening demand for cruises. Notably, Royal Caribbean is the only major cruise line actively marketing itineraries in the Arabian Gulf, while Carnival’s unhedged fuel strategy exposes it further to price volatility.
As of now, Carnival maintains its position as the largest cruise line by revenue, with projections for a 4% top-line growth in FY26 to $27.81 billion. Meanwhile, Royal Caribbean expects a 10% revenue growth to $19.77 billion, outpacing Carnival’s projected figures. Investors will be closely watching upcoming quarterly reports from Norway and Royal Caribbean for further insights into industry trends.
