Investing.com -- On Friday, Carnival Corporation (NYSE: CCL) reported first-quarter results that exceeded Wall Street expectations, though shares fell as investors weighed higher fuel costs impacting the company’s outlook.

The cruise operator posted adjusted earnings per share of $0.20, beating the analyst estimate of $0.18. Revenue reached a record $6.2 billion, surpassing the consensus estimate of $6.13 billion. The company delivered adjusted net income of $275 million despite a $54 million unfavorable impact from fuel prices and currency rates compared to guidance.

The company raised its full-year operational outlook by nearly $150 million in adjusted net income, though this improvement only partially offsets the impact from recent fuel price changes exceeding $500 million.

The company said the recent spike and volatility in fuel prices, as a result of the Middle East conflict, means it believes "it is reasonable to forecast fuel based on the purchased price of fuel for the month of March and early April."

"The company’s guidance reflects the purchased price of fuel for the month of March and early April, Brent averaging $90 per barrel for the remainder of April and May, Brent averaging $85 per barrel for the third quarter, and Brent averaging $80 for the fourth quarter," CCL stated.

For fiscal 2026, Carnival expects adjusted earnings per share of approximately $2.21 and adjusted net income of approximately $3.07 billion.

"We delivered a strong start to the year, with record first-quarter operating results that exceeded our guidance, driven by healthy fundamentals and solid execution across the business," said CEO Josh Weinstein.

Record net yields in constant currency increased 2.7%, outperforming guidance by over 1 percentage point. Bookings for 2026 were up double digits, with nearly 85% of the year already booked at historically high prices in constant currency. Customer deposits reached a first quarter record of nearly $8 billion, up nearly 10% from the prior year.

For the second quarter, Carnival expects adjusted EPS of approximately $0.34 on net yields up approximately 2.0% in constant currency.

The company announced PROPEL, a new set of long-term targets through 2029, including greater than 16% return on invested capital and more than 50% adjusted EPS growth from 2025. The board also approved an initial $2.5 billion share buyback program, which will commence following shareholder meetings expected on April 17, 2026.