CPKC Q2 Revenue Jumps 13% to $4.2B, Core EPS Up 13%, Buybacks Surge

summarizeSummary

CPKC reported Q2 2026 revenue of $4.2 billion, up 13%, with core adjusted EPS of $1.27, up 13%. The company bought back $1.3 billion in shares and raised its commercial paper program, while legal overhangs from Lac-Mégantic and Remington were resolved favorably.

check_boxKey Events · Earnings and Guidance · CP

• Revenue Up 13% to $4.2B

  Q2 2026 total revenues rose 13% to $4.2 billion, driven by a 4% increase in revenue ton-miles and strong pricing across most commodity groups, particularly grain, automotive, and metals.

• Core EPS Beats at $1.27

  Core adjusted diluted EPS of $1.27 increased 13% year-over-year, excluding acquisition-related costs, advisory fees, and KCS purchase accounting. Reported diluted EPS was $1.15, down 14% due to a $333 million gain on sale of an equity investment in Q2 2025.

• Aggressive Share Buybacks

  CPKC repurchased 10.9 million shares for $1.3 billion in Q2, bringing year-to-date repurchases to $1.9 billion. The weighted-average basic share count fell 4% year-over-year to 886.4 million.

• Operating Ratio Edges Up

  Reported operating ratio increased 90 basis points to 64.6%, and core adjusted OR also rose 90 bps to 61.6%, reflecting higher fuel costs and compensation expenses, partially offset by revenue growth.

auto_awesomeAnalysis · CP · Energy & Transportation

CPKC delivered a strong second quarter, with revenue rising 13% to $4.2 billion on 4% volume growth. Core adjusted earnings per share of $1.27 beat expectations and grew 13% year-over-year, while reported EPS fell 14% due to a prior-year gain on sale. The company aggressively repurchased $1.3 billion in shares during the quarter, reducing the share count by 4% year-over-year. Management signaled confidence in accelerating growth in the second half of 2026. The results reinforce CPKC's ability to drive earnings through pricing, operational efficiency, and capital returns, even as the operating ratio ticked up slightly.