Canadian Pacific Kansas City (CP) Q2 2026 earnings summary

Executive summary

• Revenues for Q2 2026 rose 13% year-over-year to $4.2 billion, driven by strong volume growth and pricing gains, especially in grain, automotive, and intermodal segments.

• Core adjusted diluted EPS increased 13% to $1.27, while reported diluted EPS declined 14% to $1.15 due to non-recurring items.

• Operating income grew 10% to $1.47 billion, with core adjusted operating income up to $1.60 billion.

• Volume, measured in revenue ton-miles, increased 4% year-over-year.

• Management highlighted successful execution of North American strategy, synergy realization, and disciplined cost control.

Financial highlights

• Q2 2026 revenues: $4.2B (+13% YoY); operating income: $1.47B (+10% YoY).

• Net income attributable to controlling shareholders: $1.02B (down from $1.23B YoY).

• Core adjusted diluted EPS: $1.27 (up from $1.12 YoY); reported diluted EPS: $1.15 (down 14%).

• Operating ratio increased 90 bps to 64.6%; core adjusted OR rose to 61.6%.

• Adjusted free cash for Q2: $1.0B (up from $605M YoY); dividends per share increased to $0.268.

Outlook and guidance

• Management expects accelerated volume and earnings growth in the second half of 2026, citing improved freight fundamentals and continued synergy realization.

• Expecting low double-digit core adjusted diluted EPS growth for 2026 versus 2025.

• Core adjusted effective tax rate for 2026 is expected to be approximately 24.75%.

• Long-term guidance targets high single-digit revenue growth, double-digit core adjusted EPS growth, and annual capital expenditures of $2.6–$2.8 billion.

• Strategic focus remains on disciplined cost control and long-term value creation for stakeholders.