Skip to content
Optionomics Free · No account needed

Earnings analysis · 10-Q

CP earnings analysis

Filed April 29, 2026 · Our reading of the company's report

The latest report

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…

Read full summary

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.

Read the original on SEC.gov

Gross and operating margin

How much of each revenue dollar the business keeps.

97% Gross margin Operating margin Apr 2023 Apr 2026

One point per quarterly or annual filing. Both margins are shares of that report's revenue.

From revenue to operating profit

Where each $100 of revenue went in this report.

Of every $100 of revenue Cost of sales $2 Operating expenses $61 Left as operating profit $37

Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.

How we read each report

Our analysis across the last few reports.

Read as bullish Read as bearish Apr 2023 Apr 2026

Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.

Reported figures

Earnings per share
$0.76

What stood out

  • 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.

What to watch

  • 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.

Management's outlook

Management expects to maintain strategic growth initiatives while addressing current costs structure.

Earlier filings 4

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 itself. Analysis can contain errors; check the source document for full context.