Carnival Cuts EPS Outlook to $2.21 as Fuel Costs Rise 33%
Carnival cut 2026 EPS guidance to $2.21 from $2.48 after surging oil lifted full-year fuel costs by 33% to $2.15 billion and pushed Q2 fuel expense to $610 million. Its PROPEL plan aims for 50% EPS growth by 2029 with $14 billion capital returns and a $2.5 billion buyback.
1. Profit Outlook Revision
Carnival trimmed its full-year EPS guidance to $2.21 per share, down from $2.48 projected in December and below analyst expectations of $2.35. Shares fell nearly 4% after the update as investors weighed the cost pressures against recent strong first-quarter profits.
2. Fuel Cost Surge
Oil prices have climbed over 60% this year, driving Carnival’s full-year fuel expense forecast up by roughly a third to $2.15 billion. The company now expects Q2 fuel spending of $610 million, significantly above the $539 million analysts had modeled, amplifying margin risks.
3. PROPEL Growth Strategy
The PROPEL initiative targets 50% EPS growth by 2029 through efficiency improvements and disciplined capital returns. It includes up to $14 billion in buybacks and dividends, underscored by a current $2.5 billion share repurchase program to support shareholder value.