Canadian Pacific Kansas City (NYSE:CP) Releases Quarterly Earnings Results, Beats Expectations By $0.03 EPS

31 Jul 2026, 16:42 by Danessa Lincoln · The Markets Daily

Canadian Pacific Kansas City (NYSE:CP – Get Free Report) (TSE:CP) issued its quarterly earnings results on Wednesday. The transportation company reported $0.92 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.89 by $0.03, Zacks reports. The company had revenue of $2.93 billion during the quarter, compared to analyst estimates of $2.89 billion. Canadian Pacific Kansas City had a net margin of 25.02% and a return on equity of 9.05%. Canadian Pacific Kansas City’s quarterly revenue was up 12.6% compared to the same quarter last year. During the same quarter last year, the business posted $1.12 EPS.

Here are the key takeaways from Canadian Pacific Kansas City’s conference call:

Strong Q2 performance: CPKC reported 4% volume growth, 13% revenue growth, a 61.6% core adjusted operating ratio, and 13% adjusted EPS growth to $1.27. Management reaffirmed its expectation for another year of double-digit earnings growth in 2026.
Broad-based growth pipeline: Grain, energy, chemicals, plastics, automotive, and metals all posted strong results, while Mexico-related services and cross-border “land bridge” traffic continued to expand. Management sees potential for land bridge revenue to grow from approximately $600 million this year toward $1 billion over time.
Operating leverage and cash generation: Record productivity metrics, improved asset utilization, and network integration helped offset fuel, wage, casualty, and stock-compensation headwinds. Year-to-date adjusted pre-cash rose 25%, while the company remains on track for $2.65 billion of 2026 capital expenditures and returned $2.4 billion to shareholders in the first half.
Safety and coal remain concerns: Personal injury frequency and train accidents increased year over year, and management acknowledged that customer mine-production problems will keep coal volumes a headwind in the second half. Refined-fuel shipments into Mexico also remain weak and dependent on improving market conditions.
Capacity positioned for acceleration: Executives said the network has sufficient locomotives, railcars, and track capacity to support stronger demand, with incremental hiring as the primary near-term resource requirement. They expect sequential improvement in yields, volumes, operating leverage, and earnings in the second half.

Canadian Pacific Kansas City Stock Performance

Shares of NYSE CP traded up $0.93 during mid-day trading on Friday, hitting $89.09. The company had a trading volume of 833,500 shares, compared to its average volume of 2,787,488. The company has a market capitalization of $78.85 billion, a price-to-earnings ratio of 28.65, a P/E/G ratio of 1.82 and a beta of 1.10. Canadian Pacific Kansas City has a 1 year low of $68.42 and a 1 year high of $93.95. The company has a current ratio of 0.67, a quick ratio of 0.57 and a debt-to-equity ratio of 0.46. The stock’s 50-day moving average price is $89.20 and its 200-day moving average price is $83.99.

Canadian Pacific Kansas City Announces Dividend

The business also recently declared a quarterly dividend, which will be paid on Monday, October 26th. Stockholders of record on Friday, September 25th will be issued a $0.268 dividend. This represents a $1.07 dividend on an annualized basis and a dividend yield of 1.2%. The ex-dividend date of this dividend is Friday, September 25th. Canadian Pacific Kansas City’s dividend payout ratio (DPR) is presently 24.76%.

Institutional Trading of Canadian Pacific Kansas City

Institutional investors have recently added to or reduced their stakes in the stock. Intech Investment Management LLC lifted its holdings in shares of Canadian Pacific Kansas City by 16.0% in the first quarter. Intech Investment Management LLC now owns 21,276 shares of the transportation company’s stock worth $1,493,000 after buying an additional 2,940 shares in the last quarter. Acadian Asset Management LLC purchased a new position in Canadian Pacific Kansas City during the first quarter valued at approximately $35,000. Sivia Capital Partners LLC bought a new stake in Canadian Pacific Kansas City during the 2nd quarter worth approximately $206,000. Prudential Financial Inc. lifted its stake in Canadian Pacific Kansas City by 8.7% in the 2nd quarter. Prudential Financial Inc. now owns 5,183 shares of the transportation company’s stock worth $411,000 after purchasing an additional 415 shares in the last quarter. Finally, EverSource Wealth Advisors LLC lifted its stake in Canadian Pacific Kansas City by 39.3% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,307 shares of the transportation company’s stock worth $104,000 after purchasing an additional 369 shares in the last quarter. Hedge funds and other institutional investors own 72.20% of the company’s stock.

Analyst Upgrades and Downgrades

CP has been the subject of a number of recent research reports. Weiss Ratings raised Canadian Pacific Kansas City from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, July 2nd. Canadian Imperial Bank of Commerce increased their price target on Canadian Pacific Kansas City from C$140.00 to C$143.00 and gave the stock an “outperformer” rating in a research note on Thursday, June 25th. Wells Fargo & Company lifted their price objective on Canadian Pacific Kansas City from $90.00 to $100.00 and gave the stock an “overweight” rating in a report on Wednesday, July 8th. Evercore set a $99.00 price objective on shares of Canadian Pacific Kansas City in a report on Thursday. Finally, Citizens Jmp assumed coverage on shares of Canadian Pacific Kansas City in a research report on Wednesday, July 15th. They set a “market perform” rating for the company. One research analyst has rated the stock with a Strong Buy rating, eleven have given a Buy rating and three have given a Hold rating to the stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $108.60.

View Our Latest Stock Report on CP

About Canadian Pacific Kansas City

(Get Free Report)

Canadian Pacific Kansas City (CPKC) is a North American Class I freight railroad formed through the combination of Canadian Pacific Railway and Kansas City Southern. The merged company operates an integrated rail network that spans Canada, the United States and Mexico, providing a single-line rail connection across all three countries. This transborder footprint is intended to streamline cross-border freight flows and provide shippers with direct rail access from Canadian and U.S. production centers to Mexican markets and ports.