Canadian National Railway (NYSE:CNI) Posts Quarterly Earnings Results, Beats Expectations By $0.05 EPS

Canadian National Railway (NYSE:CNI) (TSE:CNR) issued its quarterly earnings data on Friday. The transportation company reported $1.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $1.49 by $0.05, Zacks reports. Canadian National Railway had a return on equity of 22.22% and a net margin of 26.92%. The company had revenue of $3.35 billion during the quarter, compared to the consensus estimate of $3.27 billion. During the same period last year, the company earned $1.83 earnings per share. The firm’s revenue was down 99.9% compared to the same quarter last year.

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

• Q3 performance was strong: adjusted diluted EPS rose 18% to CAD 2.16 on 4% volume growth, while revenue increased 15% and the adjusted operating ratio improved 40 basis points to 61%.
• CN reported meaningful operating gains, including record third-quarter fuel efficiency, 7% employee productivity growth, 5% locomotive productivity growth, and approximately CAD 120 million in realized Fast Track benefits year-to-date.
• Financial flexibility improved, with year-to-date free cash flow up 25% to CAD 2.9 billion; CN repurchased nearly 4 million shares for about CAD 675 million and expects leverage to return to approximately 2.5 times by year-end.
• Management reaffirmed full-year adjusted EPS growth guidance at mid-to-high single digits and said results are tracking toward the upper end, supported by available network capacity and growth opportunities in energy, automotive, Canadian resources, and a planned Mexico connection with Union Pacific.
• Near-term risks include weaker coal and overseas intermodal volumes, a labor disruption at the Prince Rupert coal terminal, tougher fourth-quarter comparisons, and an estimated CAD 0.03 per-share 2027 impact from changes to Elk Valley Resources traffic; CN’s labor agreement with TCRC also expires at year-end.

Canadian National Railway Trading Down 0.2%

Shares of Canadian National Railway stock traded down $0.24 on Friday, reaching $123.82. 2,008,462 shares of the company’s stock were exchanged, compared to its average volume of 1,029,180. The company has a market capitalization of $74.61 billion, a P/E ratio of 21.95, a price-to-earnings-growth ratio of 2.22 and a beta of 0.96. Canadian National Railway has a 52 week low of $90.74 and a 52 week high of $131.55. The firm’s 50-day moving average is $121.69 and its two-hundred day moving average is $115.34. The company has a debt-to-equity ratio of 0.99, a quick ratio of 0.61 and a current ratio of 0.87.

Canadian National Railway News Roundup

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

• Positive Sentiment: CN reported third-quarter adjusted earnings of C$1.54 per share, exceeding the Zacks consensus estimate of C$1.49. Coverage also described higher profit and a revenue surge, helped by strong pricing across freight segments, indicating resilient demand and pricing power. Canadian National Surpasses Q3 Earnings and Revenue Estimates
• Positive Sentiment: The board approved a fourth-quarter dividend of C$0.915 per share, payable December 30 to shareholders of record on December 9. The continued dividend reinforces CNI’s income appeal and signals confidence in cash generation. CN Declares Fourth-Quarter 2026 Dividend
• Neutral Sentiment: The quarter’s results and operating performance were released before the market, giving investors updated information on freight demand, pricing and execution. The earnings beat is favorable, although investors may focus on the complete outlook and management commentary for evidence that momentum can continue. CN Delivers Strong Third Quarter Performance
• Negative Sentiment: CFO Ghislain Houle will retire effective February 1, 2027, with investor-relations executive Jamie Lockwood succeeding him. The internal appointment should support continuity, but leadership changes can temporarily increase execution and oversight concerns. CN Announces CFO Retirement and Successor

Wall Street Analysts Forecast Growth

Several equities research analysts have recently weighed in on the stock. Weiss Ratings upgraded shares of Canadian National Railway from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Thursday, August 13th. Susquehanna dropped their target price on shares of Canadian National Railway from $142.00 to $130.00 and set a “neutral” rating on the stock in a report on Friday, October 2nd. Citizens Jmp began coverage on shares of Canadian National Railway in a report on Wednesday, July 15th. They issued a “market perform” rating on the stock. Stephens raised shares of Canadian National Railway to a “hold” rating in a research report on Wednesday, July 8th. Finally, Citigroup decreased their price target on Canadian National Railway from $151.00 to $143.00 and set a “buy” rating for the company in a report on Wednesday, October 7th. Nine analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat.com, Canadian National Railway currently has a consensus rating of “Hold” and an average price target of $137.49.

About Canadian National Railway

Canadian National Railway Company (NYSE: CNI) is a transportation and logistics company that operates a major freight railway network across Canada and the United States. The company provides rail, intermodal and related transportation services for shippers, connecting production and consumption centers with ports and distribution hubs.

CN transports a broad range of commodities and manufactured goods, including petroleum and chemicals, grain and fertilizers, forest products, metals and minerals, coal, automotive products and consumer goods.