Revenue surged 77.9% YoY to $17.2B in 2026Q2 with gross margin expanding to 37.2%, but historical volatility and COGS averaging 74% of revenue suggest commodity-driven swings rather than stable growth.
Canadian Natural Resources Limited (CNQ) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 48.28B | 44.17B | 35.66B | 40.84B | 49.53B | 32.85B | 17.49B | 22.87B | 22.28B | 17.67B | 11.1B | 13.17B | 21.3B | 17.95B | 16.2B | 15.51B | 14.32B | 11.08B | 16.17B | 12.54B | 11.64B | 11.13B | 7.55B | 5.97B | 4.08B | 3.56B | 3.22B | 1.29B | 877.71M | 920.66M | 636.8M |
| Revenue Growth % | 10.09% | 23.87% | -12.68% | -17.55% | 50.76% | 87.83% | -23.52% | 2.64% | 26.11% | 59.21% | -15.71% | -38.19% | 18.7% | 10.81% | 4.44% | 8.27% | 29.28% | -31.5% | 28.93% | 7.74% | 4.6% | 47.47% | 26.38% | 46.28% | 14.64% | 10.49% | 150.3% | 46.7% | -4.67% | 44.58% | 126.54% |
| Cost of Goods Sold | 31.64B | 34.77B | 18.08B | 29.06B | 33.27B | 22.28B | 17.42B | 10.98B | 17.07B | 14.72B | 11.54B | 13.39B | 15.81B | 14.14B | 12.94B | 7.71B | 10.77B | 4.21B | 6.4B | 5.15B | 4.64B | 4.32B | 2.66B | 2.34B | 1.53B | 757.72M | 1.04B | 251.74M | 329.72M | 205.86M | 129.9M |
| COGS % of Revenue | - | 78.71% | 50.7% | 71.17% | 67.17% | 67.81% | 99.61% | 47.99% | 76.6% | 83.29% | 103.94% | 101.71% | 74.25% | 78.8% | 79.87% | 49.74% | 75.22% | 37.96% | 39.6% | 41.02% | 39.82% | 38.83% | 35.26% | 39.24% | 37.59% | 21.28% | 32.25% | 19.55% | 37.57% | 22.36% | 20.4% |
| Gross Profit | 16.64B | 9.4B | 17.58B | 11.77B | 16.26B | 10.58B | 69M | 11.89B | 5.21B | 2.95B | -437M | -225M | 5.49B | 3.8B | 3.26B | 7.79B | 3.55B | 6.87B | 9.77B | 7.4B | 7.01B | 6.81B | 4.89B | 3.63B | 2.55B | 2.8B | 2.18B | 1.04B | 547.99M | 714.8M | 506.9M |
| Gross Margin % | 34.46% | 21.29% | 49.3% | 28.83% | 32.83% | 32.19% | 0.39% | 52.01% | 23.4% | 16.71% | -3.94% | -1.71% | 25.75% | 21.2% | 20.13% | 50.26% | 24.78% | 62.04% | 60.4% | 58.98% | 60.18% | 61.17% | 64.74% | 60.76% | 62.41% | 78.72% | 67.75% | 80.45% | 62.43% | 77.64% | 79.6% |
| Gross Profit Growth % | - | -46.52% | 49.32% | -27.6% | 53.73% | 15228.99% | -99.42% | 128.18% | 76.59% | 775.51% | -94.22% | -104.1% | 44.22% | 16.69% | -58.17% | 119.61% | -48.36% | -29.64% | 32.05% | 5.59% | 2.9% | 39.36% | 34.65% | 42.42% | -9.11% | 28.38% | 110.79% | 89.03% | -23.34% | 41.01% | 133.38% |
| Operating Expenses | 1.42B | 1.18B | 782M | 1.31B | 1.5B | 1.06B | 69M | 567M | 5.21B | 2.95B | 842M | 517M | 5.49B | 3.8B | 3.26B | 3.87B | 4.54B | 3.46B | 3.04B | 6.56B | 2.97B | 3.08B | 2.31B | 1.96B | 1.44B | 1.01B | 1.23B | 1.03B | 345.2M | 301.64M | 190.1M |
| OpEx % of Revenue | - | 2.66% | 2.19% | 3.21% | 3.03% | 3.24% | 0.39% | 2.48% | 23.4% | 16.71% | 7.59% | 3.93% | 25.75% | 21.2% | 20.13% | 24.94% | 31.7% | 31.25% | 18.81% | 52.3% | 25.48% | 27.69% | 30.59% | 32.81% | 35.24% | 28.39% | 38.06% | 80.34% | 39.33% | 32.76% | 29.85% |
| Selling, General & Admin | 1.22B | 795M | 782M | 943M | 1.22B | 880M | 309M | 567M | 179M | 453M | 700M | 344M | 433M | 470M | 56M | -260M | 504M | 1.27B | 128M | 1.96B | 319.2M | 874.52M | 374.37M | 287.26M | 61.38M | 38.2M | 26.99M | 17.36M | 18.58M | 12.87M | 7.7M |
| SG&A % of Revenue | - | 1.8% | 2.19% | 2.31% | 2.46% | 2.68% | 1.77% | 2.48% | 0.8% | 2.56% | 6.31% | 2.61% | 2.03% | 2.62% | 0.35% | -1.68% | 3.52% | 11.5% | 0.79% | 15.65% | 2.74% | 7.86% | 4.96% | 4.81% | 1.5% | 1.07% | 0.84% | 1.35% | 2.12% | 1.4% | 1.21% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 380M | 0 | 366M | 281M | 185M | -240M | 0 | 186M | 0 | 142M | 173M | 193M | 171M | 151M | 3.73B | 111M | 2.19B | 2.93B | 3.1B | 2.65B | 2.28B | 1.93B | 1.67B | 1.38B | 1.58B | 694.36M | 383.39M | 326.63M | 288.78M | 182.4M |
| Operating Income | 15.21B | 8.23B | 16.8B | 10.46B | 14.76B | 9.51B | 0 | 11.33B | 4.85B | 2.33B | -1.28B | -742M | 4.86B | 3.16B | 3.05B | 4.32B | 3.02B | 2.48B | 6.71B | 2.34B | 4.04B | 3.66B | 2.58B | 1.67B | 1.11B | 1.21B | 1.46B | 447.05M | 202.79M | 261.62M | 316.8M |
| Operating Margin % | 31.51% | 18.62% | 47.11% | 25.63% | 29.8% | 28.95% | - | 49.53% | 21.76% | 13.22% | -11.52% | -5.64% | 22.82% | 17.63% | 18.85% | 27.86% | 21.11% | 22.34% | 41.48% | 18.64% | 34.7% | 32.86% | 34.15% | 27.96% | 27.18% | 34.11% | 45.37% | 34.72% | 23.1% | 28.42% | 49.75% |
| Operating Income Growth % | - | -51.03% | 60.52% | -29.11% | 55.17% | - | -100% | 133.66% | 107.62% | 282.56% | -72.37% | -115.27% | 53.65% | 3.6% | -29.33% | 42.86% | 22.18% | -63.11% | 186.94% | -42.13% | 10.46% | 41.9% | 54.39% | 50.46% | -8.65% | -16.94% | 227.08% | 120.45% | -22.49% | -17.42% | 142.76% |
| EBITDA | 24.94B | 15.83B | 23.34B | 16.88B | 22.11B | 15.24B | 6B | 17.06B | 10.2B | 7.52B | 3.72B | 4.74B | 9.74B | 8.01B | 7.38B | 7.92B | 7.14B | 5.29B | 9.39B | 5.2B | 6.43B | 5.67B | 4.35B | 3.23B | 2.42B | 2.12B | 2.11B | 830.44M | 529.41M | 550.39M | 499.2M |
| EBITDA Margin % | 51.66% | 35.85% | 65.47% | 41.33% | 44.65% | 46.37% | 34.31% | 74.61% | 45.75% | 42.57% | 33.53% | 36.01% | 45.73% | 44.62% | 45.58% | 51.1% | 49.88% | 47.79% | 58.07% | 41.46% | 55.23% | 50.95% | 57.58% | 54.16% | 59.37% | 59.5% | 65.38% | 64.49% | 60.32% | 59.78% | 78.39% |
| EBITDA Growth % | 39.36% | -32.17% | 38.31% | -23.68% | 45.14% | 153.89% | -64.83% | 67.38% | 35.55% | 102.12% | -21.51% | -51.32% | 21.64% | 8.48% | -6.85% | 10.92% | 34.95% | -43.63% | 80.57% | -19.12% | 13.41% | 30.47% | 34.36% | 33.46% | 14.39% | 0.55% | 153.73% | 56.86% | -3.81% | 10.26% | 134.48% |
| D&A (Non-Cash Add-back) | 9.73B | 7.61B | 6.55B | 6.41B | 7.35B | 5.72B | 6.05B | 5.74B | 5.35B | 5.19B | 5B | 5.48B | 4.88B | 4.84B | 4.33B | 3.6B | 4.12B | 2.82B | 2.68B | 2.86B | 2.39B | 2.01B | 1.77B | 1.57B | 1.31B | 904.17M | 644.87M | 383.39M | 326.63M | 288.78M | 182.4M |
| EBIT | 15.85B | 14.28B | 9.72B | 10.86B | 14.37B | 10.65B | -45M | 5.54B | 4.32B | 3.6B | -639M | -293M | 5.5B | 3.32B | 2.98B | 4.3B | 3.32B | 2.38B | 7.4B | 2.41B | 3.73B | 3.73B | 2.58B | 2.72B | 1.78B | 1.82B | 1.97B | 632.23M | 320.43M | 413.15M | 317M |
| Net Interest Income | -894.82M | -834M | -592M | -636M | -549M | -711M | -756M | -836M | -739M | -631M | -383M | -322M | -323M | -279M | -364M | -373M | -448M | -410M | -128M | -276.09M | -139.79M | -148.85M | -189.58M | -157.16M | -158.95M | -138.49M | -161.97M | 0 | -75.85M | 0 | -26.7M |
| Interest Income | 0 | 205M | 81M | 55M | 121M | 32M | 72M | 76M | 59M | 97M | 48M | 52M | 0 | 0 | 1M | 14M | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 894.82M | 1.04B | 673M | 691M | 670M | 743M | 828M | 912M | 798M | 728M | 431M | 374M | 323M | 279M | 366M | 391M | 449M | 410M | 128M | 276.09M | 139.79M | 148.85M | 189.58M | 157.16M | 158.95M | 138.49M | 161.97M | 0 | 75.85M | 0 | 26.7M |
| Other Income/Expense | -255.43M | 5.01B | -8.74B | -299M | -1.06B | 399M | -873M | -5.45B | -1.33B | 538M | 216M | 75M | 303M | -127M | -444M | -410M | -163M | -500M | 562.17M | 359.52M | -385.6M | -1.77B | -417.57M | 270.51M | -124.33M | -130.53M | -166.47M | -94.04M | -77.4M | -45.75M | -130.8M |
| Pretax Income | 14.96B | 13.24B | 8.06B | 10.16B | 13.7B | 9.91B | -873M | 5.88B | 3.52B | 2.87B | -1.06B | -667M | 5.16B | 3.04B | 2.61B | 3.91B | 2.86B | 1.98B | 7.27B | 2.7B | 3.65B | 1.88B | 2.16B | 1.94B | 985.21M | 1.08B | 1.3B | 353.01M | 125.39M | 215.87M | 186M |
| Pretax Margin % | 30.98% | 29.98% | 22.6% | 24.89% | 27.67% | 30.17% | -4.99% | 25.69% | 15.81% | 16.26% | -9.58% | -5.07% | 24.24% | 16.92% | 16.11% | 25.21% | 19.98% | 17.83% | 44.95% | 21.5% | 31.39% | 16.92% | 28.62% | 32.48% | 24.13% | 30.44% | 40.2% | 27.42% | 14.29% | 23.45% | 29.21% |
| Income Tax | 3.2B | 2.42B | 1.95B | 1.93B | 2.77B | 2.25B | -438M | 460M | 931M | 476M | -859M | -30M | 1.23B | 766M | 717M | 1.27B | 1.19B | 395M | 2.29B | 76.47M | 873.72M | 638.45M | 590.35M | 431.53M | 409.19M | 359.76M | 511.4M | 153.36M | 66.56M | 104.36M | 91M |
| Effective Tax Rate % | 21.39% | 18.28% | 24.23% | 19.01% | 20.19% | 22.67% | 50.17% | 7.83% | 26.43% | 16.57% | 80.81% | 4.5% | 23.9% | 25.23% | 27.48% | 32.4% | 41.52% | 20% | 31.44% | 2.84% | 23.91% | 33.91% | 27.33% | 22.24% | 41.53% | 33.19% | 39.47% | 43.44% | 53.09% | 48.34% | 48.92% |
| Net Income | 11.76B | 10.82B | 6.11B | 8.23B | 10.94B | 7.66B | -435M | 5.42B | 2.59B | 2.4B | -204M | -637M | 3.93B | 2.27B | 1.89B | 2.64B | 1.67B | 1.58B | 4.99B | 2.61B | 2.52B | 1.05B | 1.41B | 1.4B | 538.24M | 655.84M | 772.35M | 199.65M | 58.82M | 111.51M | 95M |
| Net Margin % | 24.35% | 24.5% | 17.12% | 20.16% | 22.08% | 23.33% | -2.49% | 23.68% | 11.63% | 13.57% | -1.84% | -4.84% | 18.45% | 12.65% | 11.68% | 17.04% | 11.68% | 14.26% | 30.82% | 20.79% | 21.68% | 9.43% | 18.62% | 23.49% | 13.18% | 18.42% | 23.96% | 15.51% | 6.7% | 12.11% | 14.92% |
| Net Income Growth % | 41.3% | 77.2% | -25.84% | -24.72% | 42.71% | 1861.84% | -108.03% | 109.03% | 8.09% | 1275% | 67.97% | -116.21% | 73.08% | 19.98% | -28.41% | 57.98% | 5.89% | -68.3% | 91.14% | 3.31% | 140.4% | -25.26% | 0.16% | 160.63% | -17.93% | -15.08% | 286.84% | 239.41% | -47.25% | 17.38% | 124.06% |
| Net Income (Continuing) | 11.76B | 10.82B | 6.11B | 8.23B | 10.94B | 7.66B | -435M | 5.42B | 2.59B | 2.4B | -204M | -637M | 3.93B | 2.27B | 1.89B | 2.64B | 1.67B | 1.58B | 4.99B | 2.61B | 2.52B | 1.05B | 1.41B | 1.4B | 538.24M | 655.84M | 772.35M | 199.65M | 58.82M | 111.51M | 95M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 5.63 | 5.16 | 2.85 | 3.74 | 4.82 | 3.24 | -0.18 | 2.27 | 1.06 | 1.02 | -0.10 | -0.29 | 1.80 | 1.04 | 0.86 | 1.21 | 0.78 | 0.73 | 2.31 | 1.21 | 1.18 | 0.49 | 0.66 | 0.44 | 0.15 | 0.18 | 0.21 | 0.06 | 0.02 | 0.04 | 0.04 |
| EPS Growth % | 42.64% | 81.05% | -23.8% | -22.41% | 48.77% | 1900% | -107.93% | 114.15% | 3.92% | 1173.68% | 67.24% | -116.11% | 73.08% | 20.93% | -28.93% | 55.13% | 6.85% | -68.4% | 90.91% | 2.54% | 140.82% | -25.76% | 50% | 193.33% | -16.67% | -14.29% | 250% | 233.33% | -50% | 0% | 80% |
| EPS (Basic) | - | 5.17 | 2.87 | 3.74 | 4.82 | 3.24 | -0.18 | 2.27 | 1.06 | 1.02 | -0.10 | -0.29 | 1.80 | 1.04 | 0.86 | 1.21 | 0.78 | 0.73 | 2.31 | 1.21 | 1.18 | 0.49 | 0.66 | 0.32 | 0.15 | 0.18 | 0.21 | 0.06 | 0.02 | 0.04 | 0.04 |
| Diluted Shares Outstanding | 2.09B | 2.1B | 2.14B | 2.2B | 2.27B | 2.36B | 2.36B | 2.38B | 2.44B | 2.37B | 2.2B | 2.19B | 2.19B | 2.18B | 2.19B | 2.19B | 2.18B | 2.17B | 2.16B | 2.16B | 2.15B | 2.14B | 2.15B | 3.22B | 3.82B | 3.92B | 3.67B | 3.33B | 3.19B | 3.16B | 2.67B |
| Basic Shares Outstanding | 2.08B | 2.09B | 2.14B | 2.18B | 2.27B | 2.36B | 2.35B | 2.38B | 2.44B | 2.36B | 2.15B | 2.19B | 2.19B | 2.18B | 2.19B | 2.19B | 2.18B | 2.17B | 2.16B | 2.16B | 2.15B | 2.14B | 2.15B | 3.22B | 3.82B | 3.92B | 3.67B | 3.33B | 3.19B | 3.16B | 2.67B |
| Dividend Payout Ratio | - | 44.98% | 72.54% | 47.26% | 45.04% | 22.39% | - | 32.18% | 60.29% | 52.23% | - | - | 24.31% | 23.04% | 23.47% | 14.3% | 18.05% | 14.24% | 4.17% | 6.83% | 6.06% | 11.52% | 7.19% | 5.51% | 11.11% | 7.04% | 0.58% | - | - | - | - |
Quick answers to the most common questions about buying CNQ stock.
For fiscal year 2025, Canadian Natural Resources Limited (CNQ) reported total revenue of $44.17B. This represents a 6835.8% increase compared to $636.8M in 1996.
Canadian Natural Resources Limited (CNQ) is profitable, generating $10.82B in net income for the fiscal year ending 2025 with a net profit margin of 24.5%.
Canadian Natural Resources Limited (CNQ) reported an operating income of $8.23B, resulting in an operating profit margin of 18.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Canadian Natural Resources Limited (CNQ) generated $9.40B in gross profit for the year, representing a gross profit margin of 21.3%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
SCO price volatility and emissions cap
Revenue Surge Masks Underlying Volatility
Revenue jumped 77.9% YoY in 2026Q2 to $17.2B, per company filings, but prior quarters showed declines, indicating commodity-driven swings rather than stable growth.
The 2026Q2 revenue spike appears driven by a combination of higher volumes and favorable pricing, yet the preceding four quarters saw negative growth, suggesting the trajectory is not linear. The 23.9% YoY revenue growth in 2025Q4, despite a 20% drop in realized SCO prices, implies volume gains or other segment strength, but sustainability is questionable given price volatility.
Margin Expansion Hinges on Cost Control
Gross margin reached 37.2% in 2026Q2, up from 20.0% in 2025Q4, as reported in financial statements, but historical volatility suggests structural cost pressures persist.
The sharp margin improvement in 2026Q2 appears tied to lower per-unit costs and possibly favorable WCS-WTI differentials, yet margins have swung between 20% and 48% over the past year. This volatility indicates limited pricing power, as CNQ remains a price-taker in global commodity markets, and any narrowing of the differential could compress margins.
Operating Leverage Amplifies Earnings Swings
Operating income scaled to $6.4B in 2026Q2 from $1.8B in 2025Q4, per SEC filings, demonstrating high operating leverage, but SG&A remained minimal, suggesting fixed-cost dominance.
The 256% increase in operating income on a 61% revenue increase highlights significant operating leverage, as fixed costs are spread over higher volumes. However, this leverage cuts both ways; in 2025Q3, a 8.5% revenue decline led to a 46% drop in operating income, underscoring the cyclicality of earnings.
Net Income Distorted by Non-Operating Items
Net margin of 49.5% in 2025Q4 far exceeded operating margin of 16.8%, per income statement data, suggesting one-time gains or tax benefits that inflate reported earnings.
The discrepancy between operating and net margins in 2025Q4 indicates significant non-operating income, possibly from hedging gains or tax recoveries, which may not recur. Investors should adjust for these items to assess underlying profitability, as the 2026Q2 net margin of 26.2% appears more aligned with operating performance.
COGS Dominates Cost Structure
COGS averaged 74% of revenue over the last five quarters, as per financial data, reflecting high production and energy costs, while SG&A remained negligible.
The cost structure is heavily weighted toward COGS, which includes energy inputs, labor, and maintenance, leaving little room for discretionary cuts. The negative SG&A in 2026Q2 suggests possible reversals or accounting adjustments, but the overall cost base appears rigid, limiting management's ability to offset price declines.
Price Weakness Threatens Margin Sustainability
Despite strong revenue growth, realized SCO prices fell ~20% YoY in Q4 2025, as noted in recent context, which may signal margin compression ahead.
The 20% decline in SCO prices, if sustained, could erode the gross margin gains seen in 2026Q2, especially as the company transitions to returning 100% of free cash flow. Additionally, the proposed federal emissions cap could limit production growth, capping revenue potential. Short-sellers might argue that the current earnings quality is inflated by non-recurring items and that the market is overvaluing CNQ's durability.