Canadian Pacific Kansas City Plunges 7.69% on Missed Earnings, Revenue Estimates

The share price fell to its lowest level since April 2025 today, with an intraday decline of 0.89%.

Canadian Pacific Kansas City’s stock has declined for nine consecutive trading days, shedding 7.69% in that span. Institutional investors, including Invesco Ltd., Goldman Sachs Group Inc., and Vanguard Group Inc., have boosted holdings, reflecting long-term confidence. However, recent earnings and revenue results missed estimates, contributing to the downward trend. The company reported Q3 2025 earnings of $0.80 per share—$0.01 below the consensus—and revenue of $2.62 billion, short of the $2.71 billion forecast.

Analysts remain cautiously optimistic, with a "Moderate Buy" consensus and an average target price of $91.69, implying a 28% upside from current levels. CP’s recent 35% dividend increase to $0.228 per share, yielding 1.3%, aims to attract income-focused investors, though a 20.12% payout ratio balances growth and distribution. Institutional ownership at 72.20% underscores the stock’s appeal to large-scale investors, despite short-term volatility.

Valuation metrics highlight a 21.54 P/E ratio and 2.06 PEG ratio, suggesting the stock is overvalued relative to growth prospects. A 0.46 debt-to-equity ratio indicates manageable leverage, while analysts’ mixed ratings—ranging from "Strong Buy" to "Sell"—reflect uncertainty about macroeconomic risks. The market awaits CP’s ability to meet future earnings targets amid shifting trade dynamics and interest rate trends, which could influence its trajectory in the coming quarters.