Canadian Pacific Kansas City Q3 2026: Fuel Costs Dent Earnings Despite Revenue Beat
As seen on the 24/7 Wall St. homepage on October 28, 2026.
Adjusted EPS came in short of expectations despite a revenue beat, as fuel expense jumped 61%. Grain revenue rose 29% on record volumes, and management still says it meets its 2026 commitments.
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Canadian Pacific Kansas City's Q3 2026 adjusted diluted EPS of $1.28 came in missing expectations, even with revenue climbing 15.2% year over year and meeting estimates.
Fuel did the damage: total fuel expense rose 61% to $667 million, lifting the core adjusted operating ratio and leaving CPKC spending more of each revenue dollar on operations than a year ago.
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Grain revenue surged 29% on record North American volumes, while coal and potash volumes declined. Adjusted free cash flow more than doubled, funding buybacks and a higher quarterly dividend.
One-time tax items, including a $94 million Canadian reassessment tied to the KCS acquisition, dragged GAAP diluted EPS to $1.04. CEO Keith Creel said the railroad remains on track to meet its full-year 2026 commitments, citing faster average train speed and shorter terminal dwell.
Mentioned: CP