Canopy Growth Corporation Stock (CGC) Jumps on Trump Marijuana Rescheduling Report — News, Forecasts, and What Investors Are Watching (Dec. 12, 2025)

Canopy Growth Corporation stock (NASDAQ: CGC ; TSX: WEED ) is in the spotlight on Friday, December 12, 2025 , after a fresh wave of US federal policy speculation sent cannabis names sharply higher in premarket trading.

The immediate catalyst: a report that President Donald Trump is expected to push for a major easing of federal marijuana restrictions—specifically, directing agencies to reclassify marijuana as a Schedule III drug . That headline quickly rippled through US-listed cannabis stocks, with Canopy Growth among the notable movers. ^[1]

Below is a detailed round-up of today’s key news , today’s market reaction , and the latest forecast and analyst framing that investors are using to handicap CGC from here—plus the biggest risks that still hang over the trade.

Canopy Growth stock price today: why CGC is moving on Dec. 12, 2025

Cannabis stocks surged in premarket trading after Reuters reported that a Washington Post story said Trump is expected to direct agencies to loosen federal restrictions by moving marijuana to Schedule III , a shift that could reduce oversight compared with Schedule I status. Reuters also cited a TD Cowen analyst note arguing the change could “open the door” for more pharma-style cannabis approvals and distribution pathways. ^[2]

In the early premarket snapshot cited by MarketWatch, CGC was indicated around $1.37 , up about 21% from the prior close at the time of that update. ^[3]

A separate Reuters “market buzz” item distributed via TradingView described CGC as up strongly in premarket as well (Reuters listed Canopy’s “WEED” identifier in that feed), reinforcing that this move was part of a sector-wide reaction rather than a company-specific earnings surprise. ^[4]

Important context for readers: cannabis stocks often react violently to federal-policy headlines, especially because many companies’ largest structural constraints (tax treatment, banking friction, investor access) are tied to federal law—even when their products are legal at the state level.

What the Washington Post report said—and what it didn’t

According to the Washington Post report referenced across multiple outlets, Trump is considering an executive order that would direct federal agencies to pursue marijuana’s reclassification to Schedule III. The Post also reported that discussions included House Speaker Mike Johnson and marijuana industry executives, and that a White House official said no final decisions have been made . ^[5]

Axios similarly reported that Trump is likely to loosen federal restrictions “early next year,” while emphasizing that a White House official said no final decision had been made. ^[6]

What this means for CGC investors today: the market is trading the possibility of policy change, not a completed regulatory change. The gap between “report,” “order,” “rulemaking,” and “final implementation” is where a lot of cannabis rallies have historically broken down.

Why Schedule III matters for cannabis stocks, including Canopy Growth

1) Tax: the 280E issue

One of the biggest financial pressures on US-linked cannabis operators is IRS Code Section 280E , which (in simplified terms) denies standard business deductions and credits for businesses trafficking in Schedule I or Schedule II controlled substances (as defined in the Controlled Substances Act context). ^[7]

If marijuana moved to Schedule III , many legal analysts and tax commentators argue that 280E would no longer apply in the same way—potentially improving after-tax cash flow for cannabis businesses. ^[8]

2) Financing: banks and institutional capital

Reuters highlighted that funding remains a major challenge because federal restrictions keep many banks and large institutional investors on the sidelines, forcing companies toward more expensive capital sources. A shift in scheduling is viewed—at least by markets—as a step that could reduce those frictions. ^[9]

3) Research and medical frameworks

A move to Schedule III is also widely seen as lowering certain barriers to research and potentially creating clearer pathways for regulated, prescription-style cannabis-derived products—an angle that Reuters underscored via the TD Cowen commentary. ^[10]

4) But it’s not the same as federal legalization

A crucial caveat: rescheduling does not equal legalization . A Congressional Research Service legal summary notes that even if marijuana were moved to Schedule III, many activities involving marijuana would remain illegal under federal law and could still be subject to federal prosecution, even if permitted under state law. ^[11]

That “not legalization” reality is why cannabis stocks can spike on rescheduling headlines—then trace when investors refocus on the remaining legal constraints and the pace of implementation.

Why Canopy Growth is especially sensitive to US policy headlines

Canopy Growth has spent years positioning itself to benefit from US liberalization—while navigating the limits that prevent many Canadian-listed cannabis firms from fully operating US THC businesses under current federal rules.

Canopy has repeatedly described US “optionality” through brands and assets tied to the US market (often discussed in the context of Wana, Jetty, and Acreage). MarketWatch previously pointed to Canopy’s exposure to US cannabis via Jetty Extracts, Wana Brands, and Acreage dispensaries, even during periods when investor sentiment toward the sector was weak. ^[12]

And in earlier investor communications, Canopy explicitly connected a potential Schedule III move with improved cashflow dynamics for those US-linked assets, citing the expected impact of removing the prohibition on business deductions under 280E. ^[13]

Bottom line: when the market senses a credible path toward federal easing, Canopy tends to move because investors treat it as a leveraged “policy beta” name—sometimes more than a pure read-through of near-term operating results.

Canopy Growth fundamentals: the most recent company results investors are weighing

While today’s rally is policy-driven, investors still anchor longer-term valuation discussions to Canopy’s financial trend line.

In its Q2 FY2026 results (reported Nov. 7, 2025 ), Canopy said:

Consolidated net revenue was $67MM , up 6% year-over-year. ^[14]
Cannabis net revenue was $51MM , up 12% year-over-year. ^[15]
Canada adult-use cannabis net revenue was $24MM , up 30% year-over-year (driven in part by growth in infused pre-rolls and new vape launches). ^[16]
Canada medical cannabis net revenue was $22MM , up 17% year-over-year (the company cited insured patient growth and higher order sizes). ^[17]
Adjusted EBITDA loss narrowed to $3MM from $6MM a year earlier. ^[18]
The company also referenced term loan prepayments totaling US$50MM during the quarter. ^[19]

These numbers matter today because they help explain why some investors are willing to “trade the headline”: Canopy has been emphasizing disciplined cost management and balance-sheet improvements alongside top-line stabilization in core Canadian segments. ^[20]

Balance sheet and dilution: two forces that can cap CGC rallies

Debt and interest savings

Canopy announced in September 2025 it completed an early US$25 million term loan prepayment and said aggregate prepayments totaling US$50 million under its lender agreement were expected to reduce annual cash interest expense by about US$6.5 million . ^[21]

The ATM equity program (dilution risk)

At the same time, Canopy has kept flexible equity-raising tools available. In August 2025, the company announced a new at-the-market (ATM) equity program that allows it to sell up to US$200 million of common shares (with the Canadian portion capped, and total proceeds not exceeding US$200 million across the US and Canada). ^[22]

This is a key tension in CGC’s stock story:

Bull view: liquidity optionality and debt paydown capacity
Bear view: the ability to issue shares can dilute shareholders—especially during volatility spikes when companies may choose to raise capital into strength

For traders, this is one reason cannabis stocks can rally hard on news yet still struggle to build sustainable multi-month uptrends.

CGC stock forecast and analyst outlook as of Dec. 12, 2025

Forecasts and consensus targets for CGC remain wide—reflecting how sensitive cannabis equities are to regulatory assumptions.

Here are the most commonly cited “street-style” reference points investors are circulating today:

Zacks price target range: forecasts ranging from about $1.15 (low) to $5.84 (high) on its compiled view, with an average target implying upside from recent prices. ^[23]
Investing.com consensus estimates: a small analyst set with an average 12‑month price target around 3.25 , with a high estimate of 8 and low estimate around 1.4–1.6 (as displayed on that page). ^[24]

Next earnings date and near-term EPS expectations

On Canopy’s investor calendar, the company lists Q3 FY26 earnings as February 6, 2026 (noted as attempted). ^[25]

Meanwhile, Zacks’ earnings calendar page shows a consensus expectation of a loss for a quarter ending in December 2025 (the displayed consensus estimate is approximately -$0.03 per share on that page). ^[26]

How to interpret these forecasts: for CGC, headline-driven swings can overwhelm near-term quarterly modeling. Many investors treat “price targets” as rough scenario markers—highly dependent on whether US policy easing is real, sustainable, and fast enough to change capital access and tax economics.

Short interest and volatility: why CGC can overshoot in both directions

CGC has also been a frequent “squeeze risk” ticker in cannabis rallies. MarketBeat reported that as of Nov. 14, 2025 , Canopy Growth had short interest of about 43.56 million shares , roughly 18.19% of the public float , with about 2.0 days to cover based on average volume. ^[27]

When a stock has elevated short interest, a sudden policy headline can force rapid covering—amplifying upside moves. The flip side is that once the headline momentum fades, volatility can reverse sharply.

What CGC investors should watch next

If you’re tracking Canopy Growth stock after today’s move, the next catalysts are largely policy and process oriented:

Confirmation or denial from official channels
Multiple reports emphasize that a White House official said no final decision has been made. ^[28]
Whether the administration signals a clear path for rescheduling
Even with an executive order, rescheduling is generally treated as a formal administrative process—not a one-day switch. ^[29]
Market structure moves (capital raises, liquidity, and dilution)
If CGC sustains higher prices and volume, investors will watch for any indication of equity issuance under the ATM framework. ^[30]
Upcoming Canopy results and guidance (Feb. 6, 2026)
Policy can move the multiple; quarterly execution still determines whether the company can translate momentum into a stronger operating profile. ^[31]

CGC stock FAQ (for search and Discover)

Why is Canopy Growth stock up today?

Because cannabis stocks broadly rallied after reports that President Trump may direct agencies to pursue marijuana rescheduling to Schedule III , which investors see as potentially improving taxes, financing access, and industry legitimacy. ^[32]

Does Schedule III mean cannabis is federally legal?

No. Legal summaries from Congress indicate rescheduling could reduce certain penalties but does not automatically legalize marijuana under federal law. ^[33]

When is Canopy Growth’s next earnings report?

Canopy’s investor events page lists Q3 FY26 earnings on February 6, 2026 (attempt). ^[34]

What’s the biggest risk for CGC shareholders after a rally?

Beyond policy uncertainty, investors often focus on dilution risk (ATM issuance), ongoing profitability challenges, and the possibility that the regulatory timeline takes longer than markets price in. ^[35]