CPKC revenue jumps 15% to C$4.2 billion in third quarter
Key Facts
Canadian Pacific Kansas City reported a 15% increase in revenue to C$4.2 billion in the third quarter of 2026, alongside 6% year-over-year growth in freight volumes, according to a company statement published via PR Newswire. Reported diluted earnings were C$1.04 per share, compared with C$1.01 in the same period of 2025, an increase of 3%. Core adjusted diluted earnings rose 16% to C$1.28 per share from C$1.10 a year earlier. Investing.com reported that adjusted earnings fell short of its estimate of C$1.31 per share, while revenue matched its forecast of C$4.2 billion. The announcement came after markets closed on October 28, according to the company.
The results reflected an expansion in activity, with revenue rising from C$3.7 billion in the third quarter of 2025 to C$4.2 billion in the corresponding quarter of 2026. The company measured freight volumes in revenue ton-miles, which increased 6% year over year. This combined growth in revenue with an expansion in freight volumes during the period. At the same time, earnings figures showed faster growth in core adjusted earnings, which rose 16%, than in reported diluted earnings, which increased 3%. Adjusted and reported earnings were C$1.28 and C$1.04 per share, respectively.
The increase in revenue and volumes was accompanied by a jump in operating costs, according to figures cited by Investing.com. Fuel expenses rose to C$667 million in the third quarter of 2026 from C$415 million in the same period a year earlier. Total operating expenses also increased to C$2.732 billion from C$2.325 billion. These increases illustrate some of the pressures on the company's performance during the quarter, alongside growth in freight and revenue. Fuel costs stand out in particular in the comparison between the periods, rising by more than total operating expenses in the reported amounts.
Chief Executive Keith Creel said the company faced economic headwinds, but pointed to continued service strength and growth in grain, intermodal and merchandise markets. He added that disciplined execution and a strong commercial pipeline support the company remaining on track to meet its commitments for the year. He said: "We continue to grow in key markets, including grain, intermodal and merchandise." Creel linked the company's annual commitment to continued execution and commercial discipline, as freight volumes rose 6%. His remarks placed growth in key markets alongside the economic challenges he said the company faced during the quarter.
In the stock market, Investing.com reported that the shares fell 1.87% in regular trading on October 29 to $89.43, then dropped an additional 3.57% after the close to $86.24. EL7 data had shown CP shares closing at 91.13 on October 27, without specifying the currency in the available data unit. The company said its results were released after markets closed on October 28, making the October 27 price predate the announcement. The October 29 move reflected a decline during the session followed by a further drop after the close, according to the report. Later on the day of the announcement, the company was scheduled to hold a call to discuss the results with the financial community.
The company scheduled the results call to begin at 4:30 p.m. Eastern time on October 28, 2026. The call was intended to discuss third-quarter results with the financial community, according to the company's statement via PR Newswire. The call was scheduled for the day results were announced after markets closed, according to the same statement. The results included year-over-year growth in revenue and core adjusted earnings, alongside increases in fuel and operating expenses. Creel said the company remained on track to meet its commitments for the year, citing disciplined execution and growth in key markets.