Revenue growth has decelerated from a 55.3% peak in 2024Q1 to a 2.5% contraction in 2026Q1, while gross margins remain volatile, fluctuating between 34.0% and 68.6% over the last several quarters.
| 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 | 14.98B | 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 % | 1.1% | 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 | 7.8B | 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 | 7.18B | 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 % | 47.91% | 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 | 1.63B | 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 | 0 | 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 | 5.55B | 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 % | 37.04% | 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 | 7.58B | 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 % | 50.57% | 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 % | 4.02% | 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) | 2.03B | 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 | 6.29B | 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 | -887.29M | -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 | 888M | 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 | -149M | -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 | 5.4B | 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 % | 36.05% | 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 | 1.33B | 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 % | 24.59% | 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 | 4.08B | 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 % | 27.21% | 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 % | 5.81% | 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) | 4.07B | 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 | 692.32M | 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) | 4.54 | 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 % | 9% | 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 | 897.3M | 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 | 896.8M | 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% |
Cross-border regulatory integration friction
As reported in recent financial filings, CPKC's revenue growth has decelerated significantly, shifting from a peak of 55.3% in 2024Q1 to a contraction of 2.5% by 2026Q1, suggesting that the initial post-merger volume surge has normalized into a more challenging macroeconomic environment for continental freight.
The transition from double-digit growth to negative territory indicates that the company is struggling to maintain volume momentum across its integrated network. Investors should monitor whether this deceleration reflects a structural shift in demand for bulk commodities or temporary congestion issues within the newly unified tri-national corridor.
Based on the provided income statement data, gross margins have exhibited significant instability, fluctuating from a high of 68.6% in 2025Q3 to a low of 34.0% in 2026Q1, which highlights the difficulty in maintaining consistent profitability during the ongoing integration of the Kansas City Southern network.
The wide variance in gross margins suggests that the company's cost structure is highly sensitive to operational disruptions or shifts in commodity mix. This volatility warrants further investigation into whether management can stabilize these margins as the unified operating plan matures and synergies are fully realized.
According to the latest quarterly figures, CPKC's operating margin has fluctuated between 32.6% and 41.1%, suggesting that the company has yet to achieve the consistent operating leverage expected from a scaled, single-line rail network following the completion of its major cross-border acquisition strategy.
The lack of a clear upward trend in operating margins implies that the expected benefits of network consolidation are being offset by integration-related costs or inflationary pressures on labor and fuel. Analysts should scrutinize whether the current operating ratio reflects temporary inefficiencies or a more permanent increase in the cost of doing business.
As indicated by the inconsistent quarterly EPS performance, which saw a 31.7% decline in 2024Q2 followed by a 37.1% increase in 2025Q2, the quality of reported earnings appears susceptible to non-operating items and the complex accounting adjustments inherent in the recent Kansas City Southern merger.
The erratic nature of bottom-line results suggests that investors should be cautious about relying on headline EPS as a proxy for underlying operational health. The potential for further integration-related charges or adjustments to depreciation schedules may continue to obscure the true earnings power of the combined entity.
Quick answers to the most common questions about buying CP stock.
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.
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%.
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.
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.