Canopy Growth (CGC) is slated to report second-quarter results on November 7, before the opening bell.
Analysts expect the company to post a loss of -C$0.18 per share, representing a 65% year-on-year improvement. Revenue is expected to rise about 14% to C$71.82 million.
The Canadian marijuana player reported better-than-expected Q1 financials for fiscal 2026, driven by an over 20% YoY increase in cannabis sales. The company had then said that it expects continued improvement in the coming quarter too.
Over the last two years, the company has beaten earnings and revenue estimates once but missed them seven times.
Canopy’s rival Aurora Cannabis posted a nearly 12% jump in its Q2 revenue on November 5.
Overall, cannabis stocks are expected to further their rally on U.S. President Donald Trump’s public endorsement of the use of cannabidiol (CBD) for senior healthcare. In September, Trump shared a video on his Truth Social account from the Commonwealth Project that showcased CBD’s potential to transform senior healthcare by slowing disease progression and offering alternatives to prescription medications.
These developments have set the stage for a possible rebound in the cannabis sector after years of stagnation, CNBC noted.
Previously, in August, reports also said that Trump was mulling downgrading marijuana to a less dangerous status.
However, Seeking Alpha analyst Ahmed Abdelazim noted that while this will allow the company to consolidate Canopy USA’s results into its financials, lifting the federal ban is a multi-year process, which highlights the weakness of its strategy.
“The company’s existing business continues to generate losses and burn cash, forcing the company to continuously raise dilutive capital to support its operations and repay its debt obligations,” Abdelazim noted.