Canadian Pacific Kansas City Ltd. (CP) Income Statement

29Y historyFree accessUpdated daily

Revenue spiked 160.7% YoY to $9.6B in 2026Q2, but operating margin fell to 14.7%, less than half the 34-41% range of the prior four quarters, indicating acquisition-related cost pressures.

Annual statement

CP Income Statement

Canadian Pacific Kansas City Ltd. (CP) annual income statement — 29-year revenue, gross profit & net income history

Annual Quarterly

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

Sales/Revenue	22.39B	15.08B	14.55B	12.55B	8.81B	8B	7.71B	7.79B	7.32B	6.55B	6.23B	6.71B	6.62B	6.13B	5.7B	5.18B	4.98B	4.4B	4.81B	4.71B	4.58B	4.39B	3.9B	3.66B	3.67B	3.7B	3.66B	3.5B	3.52B	3.72B
Revenue Growth %	50.09%	3.66%	15.86%	42.44%	10.24%	3.7%	-1.05%	6.51%	11.63%	5.17%	-7.15%	1.39%	7.94%	7.69%	10.01%	3.92%	13.16%	-8.57%	2.28%	2.71%	4.36%	12.52%	6.62%	-0.13%	-0.89%	1.19%	4.54%	-0.57%	-5.39%	-
Cost of Goods Sold	8.94B	7.21B	7B	6.11B	4.22B	3.41B	3.28B	3.45B	3.28B	2.98B	2.9B	3.42B	3.64B	3.62B	3.85B	3.34B	3.07B	1.81B	2.14B	1.79B	2.19B	2.12B	1.88B	1.4B	1.33B	2.53B	0	0	0	0
COGS % of Revenue	-	47.84%	48.14%	48.69%	47.89%	42.63%	42.52%	44.25%	44.85%	45.45%	46.5%	51.03%	54.97%	59.02%	67.59%	64.44%	61.59%	41.05%	44.47%	37.96%	47.75%	48.34%	48.1%	38.23%	36.41%	68.41%	-	-	-	-
Gross Profit	13.45B	7.87B	7.54B	6.44B	4.59B	4.59B	4.43B	4.34B	4.04B	3.58B	3.33B	3.29B	2.98B	2.51B	1.85B	1.84B	1.91B	2.6B	2.79B	2.92B	2.39B	2.27B	2.03B	2.26B	2.33B	1.17B	0	0	0	0
Gross Margin %	60.08%	52.16%	51.86%	51.31%	52.11%	57.37%	57.48%	55.75%	55.15%	54.55%	53.5%	48.97%	45.03%	40.98%	32.41%	35.56%	38.4%	58.95%	57.95%	62.04%	52.25%	51.66%	51.9%	61.77%	63.59%	31.59%	-	-	-	-
Gross Profit Growth %	-	4.27%	17.09%	40.26%	0.13%	3.5%	2.03%	7.66%	12.87%	7.23%	1.43%	10.27%	18.62%	36.13%	0.27%	-3.76%	-26.29%	-6.99%	-4.45%	21.96%	5.55%	12%	-10.42%	-2.98%	99.51%	-	-	-	-	-
Operating Expenses	7.33B	2.26B	2.36B	2.05B	1.26B	1.38B	1.12B	1.22B	1.2B	1.06B	923M	599M	642M	1.09B	934M	874M	797M	1.77B	1.75B	1.76B	1.27B	276.01M	1.31B	1.77B	1.49B	349.56M	2.81B	3.23B	2.78B	2.91B
OpEx % of Revenue	-	14.96%	16.25%	16.36%	14.34%	17.27%	14.54%	15.66%	16.46%	16.11%	14.81%	8.92%	9.7%	17.82%	16.4%	16.88%	16%	40.1%	36.32%	37.31%	27.62%	6.28%	33.62%	48.47%	40.56%	9.45%	76.88%	92.52%	79.07%	78.42%
Selling, General & Admin	2.49B	0	0	0	0	0	0	556M	0	0	0	0	0	0	0	6M	0	1.31B	1.31B	1.28B	798.64M	835.34M	827.99M	1.17B	1.14B	0	0	0	591.6M	616.6M
SG&A % of Revenue	-	-	-	-	-	-	-	7.14%	-	-	-	-	-	-	-	0.12%	-	29.68%	27.13%	27.28%	17.43%	19.02%	21.21%	31.9%	30.97%	-	-	-	16.82%	16.59%
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
R&D % of Revenue	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-	-
Other Operating Expenses	1000K	2.26B	2.36B	2.05B	1.26B	1.38B	1.12B	664M	1.16B	1B	860M	530M	572M	1.01B	0	868M	797M	458.6M	442.5M	472M	467.33M	-559.33M	484.01M	606.64M	351.54M	349.56M	2.81B	3.23B	2.19B	2.3B
Operating Income	6.12B	5.61B	5.18B	4.39B	3.33B	3.21B	3.31B	3.12B	2.83B	2.52B	2.41B	2.69B	2.34B	1.42B	949M	967M	1.12B	830.1M	1.04B	1.16B	1.13B	1.99B	713.66M	487.14M	844M	818.78M	845.2M	261.7M	736M	802.1M
Operating Margin %	27.34%	37.2%	35.6%	34.95%	37.77%	40.1%	42.94%	40.09%	38.7%	38.43%	38.69%	40.05%	35.33%	23.15%	16.66%	18.68%	22.4%	18.86%	21.64%	24.73%	24.62%	45.38%	18.29%	13.31%	23.02%	22.14%	23.12%	7.48%	20.93%	21.58%
Operating Income Growth %	-	8.3%	18.03%	31.81%	3.84%	-3.17%	5.99%	10.35%	12.39%	4.48%	-10.31%	14.92%	64.72%	49.63%	-1.86%	-13.35%	34.44%	-20.31%	-10.52%	3.15%	-43.36%	179.22%	46.5%	-42.28%	3.08%	-3.13%	222.97%	-64.44%	-8.24%	-
EBITDA	8.38B	7.63B	7.08B	5.93B	4.18B	4.02B	4.09B	3.83B	3.53B	3.18B	3.05B	3.28B	2.89B	1.99B	1.49B	1.46B	1.6B	1.31B	1.48B	1.64B	1.59B	2.44B	282.49M	93.3M	1.2B	440.33M	1.18B	577.5M	1.04B	1.05B
EBITDA Margin %	37.42%	50.59%	48.67%	47.24%	47.45%	50.24%	53.05%	49.15%	48.21%	48.52%	48.96%	48.91%	43.67%	32.37%	26.13%	28.14%	32.22%	29.83%	30.83%	34.76%	34.75%	55.51%	7.24%	2.55%	32.83%	11.91%	32.23%	16.52%	29.6%	28.3%
EBITDA Growth %	13.51%	7.76%	19.36%	41.82%	4.11%	-1.78%	6.79%	8.59%	10.91%	4.23%	-7.07%	13.56%	45.64%	33.4%	2.13%	-9.22%	22.21%	-11.51%	-9.29%	2.73%	-34.67%	762.98%	202.79%	-92.25%	173.32%	-62.63%	104.02%	-44.52%	-1.06%	-
D&A (Non-Cash Add-back)	2.26B	2.02B	1.9B	1.54B	853M	811M	779M	706M	696M	661M	640M	595M	552M	565M	539M	490M	489M	483.2M	442.5M	472M	464.1M	445.1M	-431.17M	-393.85M	359.5M	-378.46M	333M	315.8M	304.9M	249.9M
EBIT	6.56B	6.36B	5.57B	-2.28B	4.8B	4.06B	3.66B	3.6B	3.04B	2.97B	2.62B	2.35B	2.32B	1.41B	915M	952M	1.14B	917.2M	1.01B	1.02B	1.13B	-1.11B	791.16M	720.3M	844M	850.26M	3.66B	261.7M	736M	802.1M
Net Interest Income	-1.01B	-875.29M	-801M	-771M	-652M	-440M	-458M	-448M	-453M	-473M	-471M	-394M	-282M	-278M	-276M	-247M	-251M	-267.6M	-261.1M	-204.3M	0	0	0	0	0	0	0	0	0	0
Interest Income	0	0	0	0	0	0	0	6M	0	0	0	0	0	0	276M	3M	11M	18.3M	0	15.3M	0	0	0	0	0	0	0	0	0	0
Interest Expense	1.01B	876M	801M	771M	652M	440M	458M	454M	453M	473M	471M	394M	286M	283M	279M	252M	257.3M	285.9M	261.1M	219.6M	0	0	0	0	0	0	0	0	0	0
Other Income/Expense	-510.89M	-127M	-407M	-7.44B	816M	414M	-109M	22M	-243M	-21M	-259M	-729M	-301M	-295M	-313M	-270M	-245M	-198.8M	-298.6M	-362.7M	-442.2M	-1.18B	-159.47M	-46.31M	-250.6M	-270.25M	-190.1M	-162.8M	-136.9M	-164M
Pretax Income	5.61B	5.48B	4.77B	-3.05B	4.14B	3.62B	3.2B	3.15B	2.59B	2.5B	2.15B	1.96B	2.04B	1.13B	636M	697M	870.8M	637.9M	759.2M	801.5M	906.2M	813.5M	556.3M	440.5M	605.9M	547M	655.1M	98.9M	599.1M	638.1M
Pretax Margin %	25.06%	36.36%	32.81%	-24.32%	47.03%	45.28%	41.53%	40.37%	35.37%	38.11%	34.53%	29.19%	30.79%	18.34%	11.17%	13.46%	17.48%	14.49%	15.77%	17.03%	19.77%	18.52%	14.25%	12.03%	16.53%	14.79%	17.92%	2.83%	17.04%	17.17%
Income Tax	1.41B	1.34B	1.06B	-6.98B	628M	768M	758M	706M	637M	93M	553M	607M	562M	250M	152M	127M	220.1M	82.5M	140.2M	-144.7M	109.9M	270.6M	143.3M	41.8M	109.9M	136.6M	122.8M	32M	236.7M	171.6M
Effective Tax Rate %	25.2%	24.51%	22.19%	228.5%	15.15%	21.22%	23.67%	22.44%	24.61%	3.72%	25.7%	30.99%	27.58%	22.22%	23.9%	18.22%	25.28%	12.93%	18.47%	-18.05%	12.13%	33.26%	25.76%	9.49%	18.14%	24.97%	18.75%	32.36%	39.51%	26.89%
Net Income	4.2B	4.14B	3.72B	3.93B	3.52B	2.85B	2.44B	2.44B	1.95B	2.4B	1.6B	1.35B	1.48B	875M	484M	570M	650.7M	555.4M	619M	946.2M	796.3M	542.9M	413M	398.7M	496M	410.4M	532.3M	66.9M	362.4M	468.9M
Net Margin %	18.76%	27.46%	25.56%	31.28%	39.9%	35.67%	31.7%	31.31%	26.67%	36.7%	25.66%	20.14%	22.3%	14.27%	8.5%	11.01%	13.06%	12.62%	12.86%	20.1%	17.37%	12.36%	10.58%	10.89%	13.53%	11.1%	14.56%	1.91%	10.31%	12.62%
Net Income Growth %	0.46%	11.38%	-5.32%	11.66%	23.32%	16.69%	0.16%	25.06%	-18.88%	50.41%	18.27%	-8.4%	68.69%	80.79%	-15.09%	-12.4%	17.16%	-10.27%	-34.58%	18.82%	46.68%	31.45%	3.59%	-19.62%	20.86%	-22.9%	695.67%	-81.54%	-22.71%	-
Net Income (Continuing)	4.2B	4.13B	3.71B	3.92B	3.52B	2.85B	2.44B	2.44B	1.95B	2.4B	1.6B	1.35B	1.48B	875M	484M	570M	651M	550M	607.2M	946.2M	796.3M	543M	411.1M	399.1M	487.5M	411.55M	496.8M	66.9M	362.4M	468.9M
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
Minority Interest	981M	948M	998M	919M	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)	4.74	4.51	3.98	4.21	3.77	4.18	3.59	3.50	2.72	3.29	2.13	1.68	1.69	0.99	0.56	0.67	0.77	0.67	0.80	1.22	1.00	0.68	0.52	0.50	0.61	0.45	0.67	0.08	0.46	0.59
EPS Growth %	15.21%	13.32%	-5.46%	11.67%	-9.81%	16.43%	2.57%	28.68%	-17.33%	54.46%	26.79%	-0.59%	70.71%	76.79%	-16.42%	-12.99%	14.93%	-16.25%	-34.43%	22%	47.06%	30.77%	4%	-18.03%	35.56%	-32.84%	692.9%	-81.63%	-22.03%	-
EPS (Basic)	-	4.52	3.98	4.22	3.78	4.20	3.61	3.52	2.73	3.30	2.14	1.69	1.71	1.00	0.56	0.67	0.77	0.67	0.81	1.23	1.01	0.69	0.52	0.50	0.62	0.46	0.67	0.08	0.46	0.59
Diluted Shares Outstanding	887.1M	917.1M	934.6M	933.7M	932.9M	682.8M	680M	696.5M	716.5M	731.5M	752.5M	805M	872M	882.5M	866M	853M	846M	834M	777.64M	778M	793.13M	800.88M	795M	796M	796.57M	795.15M	791.75M	791.75M	792M	794.27M
Basic Shares Outstanding	886.4M	916.2M	933M	931.3M	930M	679.7M	677.5M	694M	714.5M	729.5M	748M	798.5M	864M	874.5M	859M	847.5M	844M	831.5M	767.99M	770M	786.86M	791.55M	793.5M	792.5M	791.4M	791.67M	791.75M	791.75M	792M	794.27M
Dividend Payout Ratio	-	19.22%	19.07%	18%	20.1%	17.78%	19.11%	16.89%	17.84%	12.89%	15.95%	16.72%	16.53%	27.89%	46.07%	33.86%	26.74%	-	24.02%	14.07%	14.12%	16.49%	19.78%	20.27%	16.29%	36.55%	33.91%	224.22%	-	154.04%

Key Metrics

Growth RegimeMixed

ProfitabilityStable

Balance SheetAdequate

Cash FlowStable

Top Statement Risk

Revenue volatility from acquisition

Verified Source

Metrics are mathematically derived from official filings.

SEC 10-K (2026Q2)

Revenue Surge Masks Underlying Volatility

CP's revenue jumped 160.7% year-over-year in 2026Q2 to $9.6B, according to the latest quarterly report, but prior quarters showed modest growth of 1-8%, suggesting the spike may be acquisition-driven rather than organic.

The 160.7% revenue growth in 2026Q2 is a clear outlier compared to the 1-8% growth seen in the preceding four quarters. This dramatic acceleration likely reflects the consolidation of Kansas City Southern, which closed in late 2023, but the lack of comparable growth in earlier quarters suggests the integration benefits are not yet consistently visible. Investors should monitor whether this revenue level is sustainable or a one-time boost from the merger.

Gross Margin Swing Signals Integration Costs

Gross margin swung from 34.0% in 2026Q1 to 80.2% in 2026Q2, as reported in financial statements, a 46-point swing that appears tied to acquisition-related cost allocations rather than operational efficiency.

The gross margin volatility is extreme: 80.2% in 2026Q2 versus 34.0% in the prior quarter, with historical margins ranging from 49-69%. This suggests that COGS recognition is inconsistent, possibly due to one-time charges or changes in revenue mix from the merger. The underlying operating margin of 14.7% in 2026Q2 is well below the 33-41% range seen in prior quarters, indicating that the revenue surge did not translate into proportional profitability, which warrants further investigation into cost integration.

Operating Leverage Inverted by Acquisition Costs

Operating income in 2026Q2 was $1.4B on $9.6B revenue, a 14.7% margin, versus $1.8B on $5.2B revenue in 2026Q1, per the income statement, showing that revenue growth did not scale operating profit.

Despite a near-doubling of revenue sequentially, operating income fell from $1.8B to $1.4B, implying that the incremental revenue carried disproportionately high costs. This suggests that the acquisition is currently dilutive to operating leverage, as SG&A and other expenses appear to have absorbed the revenue gain. The historical operating margin of 33-41% in prior quarters contrasts sharply with the 14.7% in 2026Q2, indicating that the company is in a transition phase where cost synergies have not yet materialized.

EPS Growth Diverges from Revenue Spike

EPS grew 22.6% in 2026Q2 to $1.63, while revenue grew 160.7%, according to the latest filing, implying that the revenue surge is not translating into proportional bottom-line gains.

The divergence between revenue growth and EPS growth is stark: 160.7% versus 22.6%. This suggests that the additional revenue is either low-margin or offset by higher operating expenses, as seen in the operating margin compression. Net income of $1.0B on $9.6B revenue yields a net margin of 10.6%, well below the 22-33% range in prior quarters, indicating that the quality of earnings may be temporarily impaired by integration costs. Investors should monitor whether this is a temporary phenomenon or a structural shift.

COGS and SG&A Surge in Acquisition Quarter

COGS jumped to $1.9B and SG&A to $2.5B in 2026Q2, as per the income statement, representing 20% and 26% of revenue respectively, versus near-zero SG&A in prior quarters, indicating a shift in cost structure.

The appearance of a $2.5B SG&A line in 2026Q2, after being zero in all prior quarters, is a significant change. This could reflect the full consolidation of Kansas City Southern's overhead, but the magnitude is large relative to revenue. Combined COGS and SG&A of $4.4B on $9.6B revenue leaves a gross profit of $7.7B, yet operating income is only $1.4B, implying other operating expenses not broken out are substantial. This cost structure suggests that the merger has introduced new fixed costs that may pressure margins until synergies are realized.

Merger Integration Could Undermine Margins

The 2026Q2 operating margin of 14.7% is less than half the 34-41% range seen in the prior four quarters, based on reported figures, raising concerns that acquisition integration is destroying value.

Short-sellers would highlight that the revenue surge from the Kansas City Southern acquisition has not translated into profitability, with operating margin collapsing to 14.7% from 34.0% in the prior quarter. The historical operating margin of 33-41% in 2024-2025 suggests the core business is capable of higher profitability, but the current quarter's performance indicates that integration costs and potential revenue mix shifts are eroding returns. If this margin compression persists, the acquisition's promised synergies may be insufficient to justify the premium paid, and investors should monitor whether management can restore operating leverage.

CP — Frequently Asked Questions

Quick answers to the most common questions about buying CP stock.

What was Canadian Pacific Kansas City Ltd.'s (CP) revenue in 2025?

For fiscal year 2025, Canadian Pacific Kansas City Ltd. (CP) reported total revenue of $15.08B. This represents a 305.7% increase compared to $3.72B in 1997.

Is Canadian Pacific Kansas City Ltd. (CP) profitable?

Canadian Pacific Kansas City Ltd. (CP) is profitable, generating $4.14B in net income for the fiscal year ending 2025 with a net profit margin of 27.5%.

What is Canadian Pacific Kansas City Ltd.'s operating profit margin?

Canadian Pacific Kansas City Ltd. (CP) reported an operating income of $5.61B, resulting in an operating profit margin of 37.2%. This margin reflects the operational efficiency of the business before interest and taxes.

What is Canadian Pacific Kansas City Ltd.'s gross profit and gross margin?

Canadian Pacific Kansas City Ltd. (CP) generated $7.87B in gross profit for the year, representing a gross profit margin of 52.2%. This demonstrates the company's core pricing power and production efficiency.