Norwegian Cruise Line Holdings Ltd. (NYSE:NCLH) stock surged Thursday after the cruise operator reported better-than-expected third-quarter 2026 results and raised its full-year earnings forecast above Wall Street estimates.

Norwegian Cruise Line Beats Earnings Estimates

Norwegian reported adjusted earnings of $1.12 per share, beating analysts’ consensus estimate of 94 cents.

Revenue edged up to $2.947 billion from $2.938 billion a year earlier, topping Wall Street’s estimate of $2.880 billion.

GAAP net income increased to $491 million from $419 million, while diluted earnings rose to $1.07 per share from 86 cents.

Adjusted net income reached $514 million, while adjusted EBITDA totaled $937 million, exceeding the company’s forecast of $874 million.

The company attributed its stronger-than-expected performance to robust last-minute bookings, higher onboard spending and cost controls.

Occupancy edged up to 106.5% from 106.4% a year earlier, while passenger volume increased to 983,214 from 803,268.

Constant-currency net yield declined 6.7%, beating the company’s forecast for an 8.9% drop by 220 basis points.

Adjusted net cruise costs, excluding fuel, per capacity day fell 2.3% in constant currency, outperforming guidance by 140 basis points.

“We delivered third quarter results that came in above guidance, all while continuing to strengthen our commercial capabilities, improve operating efficiency and enhance the guest experience,” Chairperson and CEO John W. Chidsey said.

Strong Demand but Booking Challenges Persist

Norwegian reported modest improvement in bookings for the next 12 months, although reservations remained below its preferred range.

For the first half of 2027, pricing was ahead of year-earlier levels, but bookings lagged. Second-half pricing was also higher, with bookings in line with the prior year.

During the earnings conference call, management highlighted unusually strong last-minute demand but cautioned that its fourth-quarter forecast does not assume a repeat.

The company is working to strengthen advance bookings through a new revenue management system, increased early bookings for late 2027 and 2028 sailings, and its “Cruise Without Compromise” branding strategy.

Norwegian said it identified approximately $325 million in annualized savings and cash benefits, including $225 million previously identified and another $100 million in expected benefits from guest and crew air travel optimization and promotional changes. The additional initiatives are expected to phase in through 2028.

The company opened Great Tides Waterpark at Great Stirrup Cay and completed the sale of Oceania Sirena.

Cash Flow, Debt and Leadership Changes

Operating cash flow totaled $1.706 billion for the first nine months of 2026.

Norwegian ended the quarter with approximately $257 million in cash and cash equivalents, $15.1 billion in total debt and $14.8 billion in net debt.

Chief Strategy Officer Meghan Montana will become chief financial officer effective Jan. 1, 2027, succeeding Mark A. Kempa, who will remain an adviser through June 2027.

Norwegian Raises 2026 Earnings Forecast

Norwegian raised its full-year adjusted earnings forecast to approximately $1.70 per share from $1.50, exceeding analysts’ consensus estimate of $1.54.

The company expects full-year adjusted EBITDA of approximately $2.55 billion.

However, Norwegian forecast a fourth-quarter adjusted loss of 12 cents per share, wider than Wall Street’s expected loss of 10 cents.

Fourth-quarter net yield is expected to decline approximately 6.5%, reflecting the delayed delivery of Seven Seas Prestige and canceled Seven Seas Voyager voyages through the Suez Canal.

Looking ahead, Norwegian expects net yield growth of 1% to 2% in 2027, with stronger gains anticipated in the second half.

NCLH Price Action: Norwegian Cruise Line shares were up 13.61% at $18.24 at the time of publication on Thursday, according to market data.