Canadian National Railway (NYSE:CNI) Issues Earnings Results

Canadian National Railway (NYSE:CNI) (TSE:CNR) posted its earnings results on Friday. The transportation company reported $1.49 earnings per share for the quarter, topping analysts’ consensus estimates of $1.43 by $0.06, Zacks reports. Canadian National Railway had a net margin of 26.86% and a return on equity of 21.50%. The firm had revenue of $3.24 billion for the quarter, compared to analysts’ expectations of $4.43 billion. During the same quarter in the previous year, the firm posted $1.82 earnings per share. The company’s revenue was up 2.4% on a year-over-year basis.

Here are the key takeaways from Canadian National Railway’s conference call:

• CN closed 2025 with strong financials — Q4 adjusted EPS +14% and full-year adjusted EPS +7%, a best-quarter operating ratio of 60.1% (FY 61.7%), $3.3B free cash flow, ~15M shares repurchased (~$2B) and a new buyback authorization for up to 24M shares plus a 3% dividend increase.
• Operations and productivity gains were highlighted — record safety metrics, improved car velocity and reduced dwell, T&E productivity +14% YoY, higher locomotive availability (92.5%), a Q4 fuel-efficiency record and a $20M reduction in mechanical inventory.
• For 2026 CN adopted directional guidance tied to volumes, assuming flat RTMs vs. 2025 with EPS growth slightly ahead of volumes, lower CapEx of $2.8B to boost cash conversion, and continued emphasis on pricing and productivity.
• Trade uncertainty and tariffs materially hurt results — management estimates >$350M revenue impact in 2025, with forest products and metals most affected and ongoing tariff/USMCA uncertainty creating meaningful near-term volume and mix headwinds.
• CN is skeptical of the proposed UP/NS consolidation as filed, saying it fails to address competition concerns; the company expects the applicants will need to propose significant concessions and is preparing to contest potential adverse effects on competitive access.

Canadian National Railway Stock Performance

NYSE:CNI opened at $96.23 on Friday. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.42 and a current ratio of 0.60. Canadian National Railway has a fifty-two week low of $90.74 and a fifty-two week high of $108.75. The company has a 50 day simple moving average of $98.10 and a two-hundred day simple moving average of $96.16. The company has a market capitalization of $59.12 billion, a PE ratio of 18.26, a P/E/G ratio of 2.11 and a beta of 0.96.

Wall Street Analysts Forecast Growth

A number of equities analysts have issued reports on the company. Wells Fargo & Company lowered their target price on Canadian National Railway from $117.00 to $110.00 and set an “overweight” rating for the company in a report on Monday, October 6th. Royal Bank Of Canada boosted their price target on Canadian National Railway from $148.00 to $158.00 and gave the stock an “outperform” rating in a report on Monday, November 3rd. Wall Street Zen upgraded shares of Canadian National Railway from a “sell” rating to a “hold” rating in a report on Saturday, October 18th. CIBC upgraded shares of Canadian National Railway from a “neutral” rating to an “outperformer” rating and lifted their target price for the stock from $146.00 to $151.00 in a research report on Friday, November 28th. Finally, Citigroup reduced their target price on shares of Canadian National Railway from $120.00 to $119.00 and set a “buy” rating on the stock in a report on Thursday, January 8th. One equities research analyst has rated the stock with a Strong Buy rating, nine have issued a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the stock. According to MarketBeat.com, Canadian National Railway currently has a consensus rating of “Moderate Buy” and a consensus target price of $117.64.

Key Stories Impacting Canadian National Railway

Here are the key news stories impacting Canadian National Railway this week:

• Positive Sentiment: Q4 EPS topped estimates (beats reported), showing stronger-than-expected profitability which supports near-term earnings confidence. Read More.
• Positive Sentiment: Board approved a 3% dividend increase and launched a new normal course issuer bid (share repurchase), both shareholder-friendly actions that typically support buy-side interest. Read More.
• Positive Sentiment: Company reported higher profit and revenue year-over-year, citing improved freight volumes and operational efficiency — a sign management is extracting better margins from the franchise. Read More.
• Neutral Sentiment: CN released its formal Q4 and year-end results and supporting materials (press release, slide deck, conference call), providing full disclosure but no new guidance detail that would materially alter outlook immediately. Read More.
• Negative Sentiment: Certain top-line figures were below some Street expectations (investors flagged revenue/volume comparisons versus analyst models), which can outweigh an EPS beat and pressure the stock. Read More.
• Negative Sentiment: Shares are trading lower on elevated volume as the market digests mixed signals — strong profitability and shareholder returns vs. mixed top-line/volume metrics — creating short-term selling pressure. Read More.

Institutional Investors Weigh In On Canadian National Railway

Several large investors have recently modified their holdings of the company. Schnieders Capital Management LLC. bought a new stake in shares of Canadian National Railway during the 2nd quarter valued at about $202,000. Brown Brothers Harriman & Co. lifted its stake in Canadian National Railway by 10.9% in the third quarter. Brown Brothers Harriman & Co. now owns 1,377 shares of the transportation company’s stock valued at $130,000 after buying an additional 135 shares during the period. EverSource Wealth Advisors LLC boosted its holdings in shares of Canadian National Railway by 52.1% during the 2nd quarter. EverSource Wealth Advisors LLC now owns 1,118 shares of the transportation company’s stock worth $116,000 after buying an additional 383 shares in the last quarter. Fulcrum Asset Management LLP acquired a new stake in shares of Canadian National Railway during the 3rd quarter worth approximately $51,000. Finally, ICONIQ Capital LLC increased its stake in shares of Canadian National Railway by 176.3% in the 2nd quarter. ICONIQ Capital LLC now owns 6,571 shares of the transportation company’s stock valued at $684,000 after acquiring an additional 4,193 shares in the last quarter. 80.74% of the stock is currently owned by institutional investors and hedge funds.

Canadian National Railway Company Profile

Canadian National Railway Company (NYSE: CNI) is a Class I freight railway that operates an integrated rail network across Canada and the United States. Headquartered in Montreal, Quebec, CN provides long-haul freight transportation and related logistics services that connect major ports, industrial centers and inland markets throughout North America. Its transcontinental system enables cross-border movement of goods and supports supply chains that span coast-to-coast in Canada and into the central and eastern United States.

CN’s core business is the railborne transportation of a broad mix of commodities, including intermodal container traffic, forest and paper products, grain and other agricultural products, metallurgical and industrial products, petroleum and chemical products, coal and automotive shipments.