What is a Normal Course Issuer Bid (NCIB)?

An NCIB is a Canadian regulatory mechanism allowing a publicly traded company to repurchase its own shares on the open market within predetermined limits. CPKC's NCIB permits purchases of up to 44.9 million shares between February 2, 2026, and February 1, 2027, at prevailing market prices, subject to daily trading limits and regulatory oversight. All repurchased shares are cancelled and no longer outstanding.

How much has CPKC spent on buybacks so far in 2026?

In the first six months of 2026, CPKC repurchased 16.4 million shares for $1.944 billion Canadian at a weighted-average price of $117.18 per share. In Q2 alone, the company repurchased 10.9 million shares for approximately $1.3 billion at $119.60 per share.

Why does CPKC include tax in its repurchase costs?

Canadian tax legislation imposes a 2% tax on the fair market value of Common Shares repurchased, net of qualifying issuances. CPKC accrues this tax as a direct cost of the share repurchase program, recognized in shareholders' equity, and pays the amount in the first quarter of the following year. In H1 2026, the company accrued $36 million for this tax.

What was the prior buyback authorization and has it been completed?

The previous NCIB announced on February 27, 2025, authorized the repurchase of up to 37.3 million Common Shares. CPKC completed that program by October 29, 2025, purchasing and cancelling all 37.3 million authorized shares, demonstrating active execution of its capital return strategy.

How do buybacks affect CPKC's earnings per share?

Buybacks reduce the number of outstanding shares, which can increase earnings per share if net income remains constant or grows, since the same earnings are spread across fewer shares. CPKC's diluted EPS of $1.15 in Q2 2026 reflects both operational performance and the effect of the 1.8% reduction in share count year-to-date through June 30, 2026.

Are there limits on how many shares CPKC can repurchase daily?

Yes. Canadian securities regulations impose daily trading limits on share repurchases under an NCIB. These limits are designed to ensure orderly market activity and prevent manipulation. CPKC's repurchases are conducted in compliance with these regulatory limits and at prevailing market prices.

CP 8-K Filed 2026-07-29 Execution disclosure

CPKC repurchased 10.9M shares at $119.60 average in Q2 2026

Continues normal course issuer bid; company repurchased $1.3B of shares in second quarter under active authorization through February 2027

Shares repurchased10.9M

Avg price paid$119.60

MechanismNormal Course Issuer Bid (NCIB

What the filing says

Canadian Pacific Kansas City (CPKC) repurchased 10.9 million Common Shares during the three months ended June 30, 2026, at a weighted-average price of $119.60 per share (including brokerage fees and applicable tax on share repurchases), totaling approximately $1.3 billion in the quarter. The repurchases were executed under the company's Normal Course Issuer Bid (NCIB) announced on January 28, 2026, which authorizes the purchase of up to 44.9 million Common Shares in the open market for cancellation on or before February 1, 2027.

For the six-month period ended June 30, 2026, CPKC repurchased 16.4 million Common Shares at a weighted-average price of $117.18 per share, totaling $1.944 billion. All purchases were made in accordance with the NCIB at prevailing market prices. In accordance with Canadian tax legislation, the company has accrued a 2% tax on the fair market value of Common Shares repurchased (net of qualifying issuances), recognized as a direct cost of the share repurchase program.

The company had previously completed a NCIB announced February 27, 2025, purchasing and cancelling all 37.3 million Common Shares authorized under that program by October 29, 2025. Shares repurchased under the current and previous programs are cancelled and reduce the company's share count, with consideration allocated to Share capital up to the average carrying amount and any excess to Retained earnings.

On January 28, 2026, the Company announced a normal course issuer bid ("NCIB"), commencing February 2, 2026, to purchase up to 44.9 million Common Shares in the open market for cancellation on or before February 1, 2027. — CANADIAN PACIFIC KANSAS CITY LTD/CN 8-K filing · View on SEC EDGAR →

What this means

CPKC's ongoing buyback program reduces its outstanding share count through open-market repurchases, which can support earnings per share by spreading the same net income across fewer shares. In the first half of 2026, the company repurchased 16.4 million shares (approximately 1.8% of the January 1, 2026 share count of 897.6 million), representing nearly $1.9 billion in capital deployed. The authorization of 44.9 million shares through February 2027 signals the company's confidence in returning capital to shareholders while maintaining operational flexibility. The weighted-average repurchase price of $117.18 in H1 2026 reflects execution during a period of strong operational results, with Q2 revenues reaching $4.2 billion and diluted EPS of $1.15.

Frequently asked questions

What is a Normal Course Issuer Bid (NCIB)?: An NCIB is a Canadian regulatory mechanism allowing a publicly traded company to repurchase its own shares on the open market within predetermined limits. CPKC's NCIB permits purchases of up to 44.9 million shares between February 2, 2026, and February 1, 2027, at prevailing market prices, subject to daily trading limits and regulatory oversight. All repurchased shares are cancelled and no longer outstanding.
How much has CPKC spent on buybacks so far in 2026?: In the first six months of 2026, CPKC repurchased 16.4 million shares for $1.944 billion Canadian at a weighted-average price of $117.18 per share. In Q2 alone, the company repurchased 10.9 million shares for approximately $1.3 billion at $119.60 per share.
Why does CPKC include tax in its repurchase costs?: Canadian tax legislation imposes a 2% tax on the fair market value of Common Shares repurchased, net of qualifying issuances. CPKC accrues this tax as a direct cost of the share repurchase program, recognized in shareholders' equity, and pays the amount in the first quarter of the following year. In H1 2026, the company accrued $36 million for this tax.
What was the prior buyback authorization and has it been completed?: The previous NCIB announced on February 27, 2025, authorized the repurchase of up to 37.3 million Common Shares. CPKC completed that program by October 29, 2025, purchasing and cancelling all 37.3 million authorized shares, demonstrating active execution of its capital return strategy.
How do buybacks affect CPKC's earnings per share?: Buybacks reduce the number of outstanding shares, which can increase earnings per share if net income remains constant or grows, since the same earnings are spread across fewer shares. CPKC's diluted EPS of $1.15 in Q2 2026 reflects both operational performance and the effect of the 1.8% reduction in share count year-to-date through June 30, 2026.
Are there limits on how many shares CPKC can repurchase daily?: Yes. Canadian securities regulations impose daily trading limits on share repurchases under an NCIB. These limits are designed to ensure orderly market activity and prevent manipulation. CPKC's repurchases are conducted in compliance with these regulatory limits and at prevailing market prices.

execution NCIB normal-course-issuer-bid canadian-company rail-sector Q2-2026

Source. This editorial summary is based on the SEC filing linked above. BuybackStocks aggregates and editorializes publicly available SEC EDGAR filings. Not investment advice. Past authorization announcements do not guarantee future repurchase activity or share price performance. See our full disclosures policy.