Canadian Pacific Kansas City stock: Revenue rises 15 percent amid fuel pressure

Published on 11/02/2026 at 11:03 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Canadian Pacific Kansas City stock follows a quarter of 15 percent revenue growth. Higher fuel costs still pressured operating efficiency and margins.

Third-Quarter Growth Meets Cost Pressure

CPKC increased third-quarter revenue by 15 percent year over year to CAD 4.219 billion.
Core adjusted diluted EPS rose 16 percent to CAD 1.28, while higher fuel prices pushed the core adjusted operating ratio higher.
Management expects mid-single-digit volume growth for 2026 and a fourth-quarter operating ratio below 60 percent.

CP, CA13646K1084, Illustration mit AI erstellt.

Canadian Pacific Kansas City reported stronger revenue and adjusted earnings for the third quarter on October 28, while higher fuel costs put pressure on operating efficiency. The company said it remains on track to meet its commitments for 2026.

According to the CPKC earnings release, revenue rose 15 percent year over year to CAD 4.219 billion in the three months ended September 30, from CAD 3.661 billion a year earlier. Revenue ton-miles increased 6 percent, with freight revenue reaching CAD 4.139 billion.

Revenue Growth, Fuel Headwind

Reported operating income increased to CAD 1.487 billion from CAD 1.336 billion. Reported diluted earnings per share rose 3 percent to CAD 1.04 from CAD 1.01. Core adjusted diluted EPS, a non-GAAP measure, increased 16 percent to CAD 1.28 from CAD 1.10.

The improvement in adjusted earnings came despite a sharper cost burden. CPKC's reported operating ratio rose to 64.8 percent from 63.5 percent, while the core adjusted ratio increased to 61.9 percent from 60.7 percent. The company said higher fuel prices affected the reported ratio by 170 basis points and the core adjusted ratio by 190 basis points.

Fuel expense climbed to CAD 667 million from CAD 415 million in the prior-year quarter. Net income attributable to controlling shareholders was CAD 917 million, compared with CAD 920 million a year earlier. The financial statements also show quarterly operating cash flow of CAD 1.550 billion, up from CAD 1.274 billion.

Management Keeps 2026 Commitments

Chief Executive Officer Keith Creel said the railroad continued to grow in grain, intermodal and merchandise markets. He pointed to disciplined execution and a robust commercial pipeline as reasons for maintaining confidence in the company's full-year commitments.

Management expects mid-single-digit growth in revenue ton-miles for 2026 and continues to target low double-digit growth in core adjusted diluted EPS. Capital spending is expected to total approximately CAD 2.65 billion for the year. The company also expects a fourth-quarter operating ratio below 60 percent, supported by October volumes, network performance and a favorable weather outlook.

For investors, the quarter presents a mixed operating picture. Volume growth, pricing and network productivity supported adjusted earnings, but fuel inflation widened the operating ratio and kept reported net income broadly flat. The next focus is whether stronger traffic and productivity can offset energy costs during the final quarter.

Canadian Pacific Kansas City stock traded at 80.34 euros on Lang & Schwarz at 11:00 CET on Monday, November 2, 2026. The real-time quote of Canadian Pacific Kansas City stock is available on the stock snapshot page.