CP to Report Q2 Earnings: What's in the Offing for the Stock?

Canadian Pacific Kansas City CP is scheduled to report second-quarter 2026 results on July 29, after the market close.The Zacks Consensus Estimate for CP’s second-quarter 2026 earnings has been revised southward by 2.2% over the past 60 days to 89 cents per share. The consensus mark indicates a 9.9…

Canadian Pacific Kansas City CP is scheduled to report second-quarter 2026 results on July 29, after the market close.

The Zacks Consensus Estimate for CP’s second-quarter 2026 earnings has been revised southward by 2.2% over the past 60 days to 89 cents per share. The consensus mark indicates a 9.9% increase from the second-quarter 2025 actuals. The Zacks Consensus Estimate for second-quarter 2026 revenues is pegged at $2.91 billion, indicating a 9% increase from the second-quarter 2025 actuals.

Canadian Pacific has a discouraging earnings surprise history, wherein its earnings have underperformed the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average miss of 2.26%.

Canadian Pacific Kansas City Limited Price and EPS Surprise

Canadian Pacific Kansas City Limited price-eps-surprise | Canadian Pacific Kansas City Limited Quote

Factors Influencing CP's Q2 Performance

We expect CP’s performance in the to-be-reported quarter to have been adversely impacted by the downturn in the freight market demand and lower volumes. Rising operating expenses, along with ongoing geopolitical tensions in the Middle East and supply-chain disruptions, are likely to have materially affected CP’s performance in the March-end quarter.

Carloads from Coal, Forest products, Energy & chemicals and intermodal are expected to have decreased 21.3%, 6%, 6% and 0.9%, respectively, on a year over year basis in the second quarter of 2026.

On the contrary, the Zacks Consensus Estimate for total revenues ton miles (RTMs) is likely to have improved 3.8% year over year in the to-be-reported quarter. This improvement is expected to have been driven by a rise in freight revenues across key sub-groups like Grain, Potash and Metals, which are anticipated to have increased 19.5%, 10.6% and 5.7%, respectively, on a year-over-year basis.

What Our Model Says About CP

Our proven model does not conclusively predict an earnings beat for Canadian Pacific this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. You can uncover before they’re reported with our Earnings ESP Filter.

CP has an Earnings ESP of -0.74% and a Zacks Rank #4 (Sell) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of CP’s Q1 Results

CP reported unimpressive first-quarter 2026 results, wherein both earnings and revenues missed the Zacks Consensus Estimate.

Quarterly earnings (excluding 7 cents from non-recurring items) of 76 cents per share missed the Zacks Consensus Estimate of 78 cents. The bottom line improved 2.7% on a year-over-year basis. Operating revenues of $2.69 billion lagged the Zacks Consensus Estimate of $2.71 billion. However, the top line improved 2.1% on a year-over-year basis.

Stocks to Consider

Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

Schneider National SNDR has an Earnings ESP of +1.50% and a Zacks Rank #2 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.

The Zacks Consensus Estimate for second-quarter 2026 earnings has remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.

Allegiant Travel Company ALGT has an Earnings ESP of +34.29% and a Zacks Rank #2 at present. ALGT is scheduled to report second-quarter 2026 earnings on Aug. 4

The Zacks Consensus Estimate for second-quarter 2026 earnings has been revised upwards by more than 100% over the past 60 days to 95 cents. ALGT’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters (missing the mark in the remaining quarter). The average beat being 21.94%.

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