CPKC Q2 revenue beats estimates on improved freight demand

Canadian Pacific Kansas City

29/07/2026 21:43

Overview
Canada freight railway's Q2 revenue rose 13% yr/yr, beating analyst expectations
Core adjusted diluted EPS for Q2 rose 13% and beat analyst expectations
Company cites disciplined execution and improved freight fundamentals for quarterly growth

Outlook
CPKC expects to accelerate volume and earnings growth in the second half of 2026
Company cites improving freight fundamentals and synergy realization as drivers for future growth

Result Drivers
STRATEGY EXECUTION - Co said successful implementation of its North American strategy and synergy realization supported revenue and earnings growth
FREIGHT FUNDAMENTALS - Improving freight fundamentals contributed to revenue and adjusted EPS growth, per CEO Keith Creel
VOLUME GROWTH - Revenue ton-miles increased 4% yr/yr, contributing to higher revenues

Company press release: ID:nPn51cznNa

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
C$4.16 bln
C$4.08 bln (18 Analysts)
Q2 Adjusted EPS
Beat
C$1.27
C$1.24 (22 Analysts)
Q2 EPS
 
C$1.15
 
Q2 Net Income
 
C$1.02 bln
 
Q2 Basic EPS
 
C$1.16
 
Q2 Operating Income
 
C$1.47 bln
 
Q2 Pretax Profit
 
C$1.36 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 22 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy"
Wall Street's median 12-month price target for Canadian Pacific Kansas City Ltd is C$136.00, about 5.1% above its July 28 closing price of C$129.43
The stock recently traded at 23 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
July 27 - Canada's TFI International Q2 adjusted profit beats estimates on growth in all businesses
July 28 - Landstar Q2 revenue beats estimates as freight transportation market "rapidly" improves
July 29 - Old Dominion Q2 revenue rises 10%, beats estimates

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)