CP earnings analysis
What we found in CP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
Canadian Pacific Kansas City Limited reported Q1 2026 results with revenue of $2.699 billion, slightly below the expected $2.710 billion, and diluted EPS of $0.76, missing the $0.78 consensus estimate. Both metrics decreased from the previous quarter's revenue of $2.64 billion and EPS of $0.67, reflecting a trend of marginal decline. Despite the earnings miss, management remains optimistic about long-term growth prospects fueled by operational improvements and volume growth.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Decline vs Prior Quarter
- Revenue of $2.699 billion decreased from $2.64 billion in Q1 2025.
- EPS Decline
- Diluted EPS of $0.76 fell from $0.67 in Q1 2025.
- Gross Margin Consistency
- Gross margin held steady at 97.0%, marginally down from 97.2% in Q4 2025.
- Operating Margin Similarity
- Operating margin was relatively stable at 36.5%, compared to 36.3% in Q1 2025.
- Strong Cash Flows
- Operating cash flow remains robust at $301 million, supporting investment.
- Increased Share Repurchases
- 5,735,907 shares repurchased in Q1 2026, signaling confidence in shares.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Missed Earnings Estimates
- Q1 2026 EPS of $0.76 missed estimates by $0.02.
- Revenue Shortfall
- Actual revenue of $2.699 billion fell short of forecasts by $0.1 billion.
- Pressure from Increased Operating Costs
- Rising operational costs are impacting margins and profitability.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.76
- Gross margin
- 97.0%
- Operating margin
- 36.5%
What they said about what is next.
Management expects to maintain strategic growth initiatives while addressing current costs structure.
The filing reads worse than the one before it.
What came before.
- 10-K · April 23, 2026
- CPKC delivered 2025 revenue and margin improvement driven by execution of Precision Scheduled Railroading and network investments: total revenues rose 4% to $15.1 billion in 2025 (from $14.5 billion in 2024), reported…
- 10-K · February 26, 2026
- CPKC reaffirms a precision scheduled railroading strategy built on five operational foundations and continues to leverage its unique ~20,000-mile North American network spanning Canada, the U.S. and Mexico. Freight…
- 10-K · February 27, 2025
- CPKC positions itself around precision scheduled railroading and five operational foundations (service, cost control, asset optimization, safety and people) while operating the only freight railway spanning Canada, the…
- 10-Q · October 24, 2024
- CPKC reported quarter-over-quarter operating and cash-flow improvement with total revenues of $3,549 million and operating income of $1,203 million for the three months ended September 30, 2024, up from $3,339 million…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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