Canadian Pacific Kansas City stock: Q3 revenue rises 15 percent

Canadian Pacific Kansas City reported stronger third-quarter operating performance on Wednesday, October 28, 2026, with revenue growth and higher adjusted earnings offset in part by rising fuel costs. The company said its North American rail network continued to gain momentum across grain, intermodal and merchandise markets.

According to the company's third-quarter earnings release, revenue increased 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, the company's volume measure, increased 6 percent.

Adjusted earnings advance

Reported diluted earnings per share rose 3 percent to CAD 1.04 from CAD 1.01. Core adjusted diluted earnings per share, which excludes specified items and is a non-GAAP measure, increased 16 percent to CAD 1.28 from CAD 1.10.

Operating income reached CAD 1.487 billion, compared with CAD 1.336 billion in the prior-year quarter. Net income was CAD 916 million, nearly unchanged from CAD 917 million. The reported result included several tax-related and acquisition-related items, including a CAD 94 million reassessment of prior-year taxes related to the Kansas City Southern acquisition and CAD 17 million from a Mexican tax settlement.

Fuel was the clearest operating pressure. Fuel expense rose to CAD 667 million from CAD 415 million, while the reported operating ratio increased to 64.8 percent from 63.5 percent. The core adjusted operating ratio rose to 61.9 percent from 60.7 percent. A higher ratio indicates that more revenue was absorbed by operating costs.

Volume mix shapes the quarter

Grain revenue climbed to CAD 904 million from CAD 702 million, while intermodal revenue increased to CAD 815 million from CAD 668 million. Energy, chemicals and plastics revenue reached CAD 763 million, compared with CAD 701 million in the third quarter of 2025. Coal revenue was broadly stable at CAD 254 million, while coal volumes declined.

Management highlighted service performance, disciplined execution and a commercial pipeline as supports for continued growth. Chief Executive Keith Creel said the company remains on track to meet its commitments for 2026. The statement is an outlook from management rather than a new numerical earnings forecast.

Canadian Pacific Kansas City stock traded at 79.07 euros on Lang & Schwarz at 10:36 CEST on Friday, October 30, 2026. Investors can follow the real-time quote of Canadian Pacific Kansas City stock.

The Canadian railway's next investor focus will be the development of its 2026 operating performance, fuel-cost trend and volume growth across its three-country network. The broader Canadian market can be followed in current market coverage for the S&P/TSX Composite.

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