Canadian National Railway (NYSE:CNI) Releases Earnings Results

Canadian National Railway (NYSE:CNI) (TSE:CNR) issued its earnings results on Friday. The transportation company reported $1.50 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.39 by $0.11, Zacks reports. Canadian National Railway had a net margin of 27.22% and a return on equity of 21.90%. The company had revenue of $3.35 billion during the quarter, compared to analyst estimates of $3.26 billion. During the same quarter last year, the business posted $1.87 EPS. The company’s revenue for the quarter was up 11.3% on a year-over-year basis.

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

• CN posted another strong quarter, with adjusted diluted EPS up 12% FX-adjusted on 5% volume growth, and raised full-year guidance to mid- to high-single-digit EPS growth on low-single-digit RTM growth.
• The railroad highlighted broad operational improvement, including record first-half fuel efficiency, better labor and locomotive productivity, and roughly CAD 100 million of realized Fast Track savings year to date.
• Commercial performance remained strong, with revenue up 11% and standout momentum in grain, potash, petroleum and chemicals, domestic intermodal, and energy-related traffic, helped by solid service and pricing discipline.
• CN announced strategic agreements with Union Pacific that expand its reach into Mexico and, if approved, Kansas City, which management said should create new growth opportunities and improve network density without opposing the merger.
• Management said wildfire impacts have been limited so far and that the main line in Northern Ontario remains open, while also noting fuel and FX remain key variables for the second half of the year.

Canadian National Railway Trading Down 0.8%

NYSE:CNI opened at $129.53 on Friday. The company has a current ratio of 0.67, a quick ratio of 0.49 and a debt-to-equity ratio of 0.95. Canadian National Railway has a 1-year low of $90.74 and a 1-year high of $131.55. The firm has a market capitalization of $78.50 billion, a price-to-earnings ratio of 22.97, a PEG ratio of 2.47 and a beta of 0.96. The business’s 50-day moving average price is $120.15 and its two-hundred day moving average price is $110.64.

Canadian National Railway Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Tuesday, September 29th. Shareholders of record on Tuesday, September 8th will be paid a $0.915 dividend. The ex-dividend date of this dividend is Tuesday, September 8th. This represents a $3.66 annualized dividend and a yield of 2.8%. Canadian National Railway’s dividend payout ratio is presently 48.55%.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in CNI. Caitong International Asset Management Co. Ltd raised its position in shares of Canadian National Railway by 378.4% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 354 shares of the transportation company’s stock worth $35,000 after purchasing an additional 280 shares during the period. Fulcrum Asset Management LLP bought a new stake in Canadian National Railway during the 3rd quarter worth approximately $51,000. Smartleaf Asset Management LLC increased its stake in Canadian National Railway by 19.4% during the 4th quarter. Smartleaf Asset Management LLC now owns 635 shares of the transportation company’s stock worth $63,000 after purchasing an additional 103 shares in the last quarter. EverSource Wealth Advisors LLC raised its holdings in 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 during the period. Finally, Brown Brothers Harriman & Co. raised its holdings in Canadian National Railway by 10.9% during the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,377 shares of the transportation company’s stock worth $130,000 after buying an additional 135 shares during the period. 80.74% of the stock is currently owned by institutional investors.

Analysts Set New Price Targets

Several equities analysts have commented on CNI shares. Weiss Ratings downgraded shares of Canadian National Railway from a “hold (c+)” rating to a “hold (c)” rating in a research report on Thursday, July 9th. Sanford C. Bernstein lifted their target price on shares of Canadian National Railway from $113.88 to $117.36 and gave the company a “market perform” rating in a research report on Tuesday, March 31st. Evercore raised Canadian National Railway from an “in-line” rating to an “outperform” rating and set a $124.00 price target on the stock in a research note on Thursday, June 25th. Canadian Imperial Bank of Commerce raised their price objective on shares of Canadian National Railway from C$182.00 to C$185.00 and gave the stock an “outperformer” rating in a report on Thursday, June 25th. Finally, Susquehanna reissued a “neutral” rating and set a $140.00 price objective (up from $138.00) on shares of Canadian National Railway in a report on Tuesday, July 14th. Eight investment analysts have rated the stock with a Buy rating and eight have given a Hold rating to the company. According to MarketBeat, Canadian National Railway presently has a consensus rating of “Moderate Buy” and an average target price of $132.12.

Key Canadian National Railway News

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

• Positive Sentiment: CNI posted second-quarter earnings of $2.08 per share, well above the $1.39 consensus estimate, while revenue rose 11.3% year over year, signaling stronger operational performance. Article Title
• Positive Sentiment: The company raised its 2026 guidance and increased its volume outlook, which suggests management expects demand trends and network utilization to remain supportive. Article Title
• Positive Sentiment: CN also announced a quarterly dividend of C$0.915 per share, reinforcing its capital-return profile for income-focused investors. Article Title
• Positive Sentiment: CN and Union Pacific announced an agreement to improve North American rail connectivity, which could create new cross-border service opportunities and expand customer access. Article Title

About Canadian National Railway

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.