Carnival Corp (NYSE:CCL) stock fell 4.02% (As on March 27, 11:28:33 AM UTC-4, Source: Google Finance) after the company cut its annual profit forecast, as higher fuel costs pressure ​the cruise operator’s margins amid rising geopolitical tensions. Attacks on oil and facilities across the Middle East and disruptions to energy flows through the Strait of Hormuz, which carries about a fifth of global oil flows, since the Iran war outbreak, have ​disrupted global supply and pushed up oil prices. The spike threatens Carnival ​profits as it is the only major U.S. cruise line that does ⁠not hedge fuel. Cruise lines, which rely on heavy fuel oil and marine gas ​oil among other fuel types, usually turn to hedging to lock in prices ​via financial contracts and protect against sudden swings.

Moreover, the company reported net income of $258 million and adjusted net income of $275 million, outperformed guidance despite a $54 million ($0.04 adjusted EPS) unfavorable impact from fuel prices and currency rates compared to guidance. The company delivered record adjusted EBITDA of $1.3 billion. Gross margin yields increased nearly 10 percent. Record net yields (in constant currency) increased 2.7 percent, which outperformed guidance by over 1 point. Cruise costs per available lower berth day (“ALBD”) increased 4.9 percent. Adjusted cruise costs excluding fuel per ALBD1 (in constant currency) increased 5.3 percent, better than guidance. Fuel consumption per ALBD decreased 4.7 percent due to the company’s efforts and investments to continuously reduce fuel consumption in its operations.

CCL in the first quarter of FY 26 has reported the adjusted earnings per share of $0.20, beating the analysts’ estimates for the adjusted earnings per share of $0.18. The company had reported the adjusted revenue growth of  percent to $6.2 billion in the first quarter of FY 26, beating the analysts’ estimates for revenue of $6.13 billion.

Carnival expects full-year adjusted earnings per share to be about $2.21, below its previous expectation of up to $2.48. Carnival said ​the guidance is based on fuel purchased in March and early April, with Brent crude ⁠to average $90 a barrel for the rest of April and May, $85 in the third quarter and $80 in the fourth quarter, rather than spot prices. Nearly $150 million in operational gains from higher yields and lower non‑fuel costs are expected to help cushion ​the impact of over $500 million in higher fuel prices, ​the company ⁠said. Strong bookings also helped Carnival edge past market expectations for first-quarter revenue and profit. The company announced a $2.5 billion share buyback