CPKC Posts Strong Q2: Revenue Up 13% to $4.2B, Core Adjusted EPS Up 13%

Published: July 30, 2026

CPKC freight train representing second quarter 2026 results

CPKC closes out the Class I Q2 earnings window after UP, NS, CN, and CSX. CPKC photo.

Canadian Pacific Kansas City reported second-quarter 2026 results after the market close on July 29, posting revenues of $4.2 billion (up 13 percent from $3.7 billion a year earlier) and core adjusted diluted EPS of $1.27 (up 13 percent) as the only true U.S.–Mexico–Canada Class I closed its mid-year books. Reported diluted EPS was $1.15, down 14 percent year over year, reflecting the year-ago gain on sale of an equity investment and other non-core items.

Key figures from the release:

Revenue: $4.164 billion (+13% year over year)
Operating ratio: 64.6% reported (+90 bps); 61.6% core adjusted (+90 bps)
Volumes: Revenue ton-miles up 4% (about 57.6 billion RTMs per investor materials)
EPS: $1.15 reported diluted (−14%); $1.27 core adjusted diluted (+13%)
Operating income: $1.472 billion reported (+10%); $1.601 billion core adjusted (+10%)

“This unrivalled three-nation network and CPKC’s exceptional team of railroaders delivered another quarter of strong revenue and earnings growth,” said President and CEO Keith Creel. “Our disciplined execution of Precision Scheduled Railroading produced excellent operating performance in the quarter. We are well-positioned to accelerate volume and earnings growth in the second half of 2026.”

Freight revenue strength was broad: grain, energy/chemicals/plastics, metals/minerals/consumer products, automotive, and intermodal all contributed higher dollars versus Q2 2025, while coal revenue declined. Management reiterated confidence in North American strategy and synergy realization after the CP–KCS combination, with investor materials pointing to a maintained full-year outlook calling for low double-digit core adjusted diluted EPS growth versus 2025’s $4.61, mid-single-digit RTM growth, and capital expenditures of roughly $2.65 billion.

The print lands at the end of a busy Class I earnings stretch: Union Pacific and Norfolk Southern both highlighted merger-related narratives alongside operations, CSX posted record quarterly revenue, and Canadian National raised full-year guidance. CPKC’s single-line network across three countries remains a structural contrast to the proposed UP–NS transcontinental combination still before the Surface Transportation Board—so investors will parse CPKC’s volume and OR trends as a live check on North American freight demand outside the UP–NS deal frame. Notes to the financials also show CPKC booked advisory costs related to STB analysis of the UP–NS proposal, underscoring how widely that case is drawing industry attention and spend.

For shippers, the practical read is whether CPKC converted mid-year demand into free-cash and service progress after years of integrating the Kansas City Southern franchise into day-to-day operating rhythm. Full tables and non-GAAP reconciliations are in CPKC’s Q2 investor package.

Sources: Canadian Pacific Kansas City second-quarter 2026 earnings release and related investor materials, July 29, 2026.

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CPKC Posts Strong Q2: Revenue Up 13% to $4.2B, Core Adjusted EPS Up 13%

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