Canadian National Railway (NYSE:CNI) Announces Earnings Results

Canadian National Railway (NYSE:CNI) (TSE:CNR) announced its earnings results on Friday. The transportation company reported $1.54 earnings per share for the quarter, beating the consensus estimate 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 firm’s revenue for the quarter was down 99.9% on a year-over-year basis. During the same period in the prior year, the company posted $1.83 EPS.

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 Price Performance

Canadian National Railway stock traded down $0.24 during mid-day trading on Friday, hitting $123.82. 1,837,876 shares of the company were exchanged, compared to its average volume of 1,500,254. The company has a debt-to-equity ratio of 0.99, a current ratio of 0.87 and a quick ratio of 0.61. Canadian National Railway has a 12-month low of $90.74 and a 12-month high of $131.55. The business’s 50 day simple moving average is $121.78 and its two-hundred day simple moving average is $115.22. The company has a market capitalization of $74.61 billion, a P/E ratio of 21.95, a PEG ratio of 2.23 and a beta of 0.96.

Analysts Set New Price Targets

CNI has been the topic of several recent analyst reports. Wells Fargo & Company boosted their target price on Canadian National Railway from $135.00 to $145.00 and gave the stock an “overweight” rating in a research report on Monday, July 27th. Raymond James Financial downgraded shares of Canadian National Railway from a “moderate buy” rating to a “hold” rating in a report on Monday, October 19th. Citigroup decreased their price objective on shares of Canadian National Railway from $151.00 to $143.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. Stephens upgraded shares of Canadian National Railway to a “hold” rating in a research report on Wednesday, July 8th. Finally, Royal Bank Of Canada upped their price target on Canadian National Railway from $195.00 to $205.00 and gave the stock an “outperform” rating in a report on Monday, July 27th. Nine analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company. According to MarketBeat, the company has a consensus rating of “Hold” and an average target price of $137.49.

Key Headlines Impacting Canadian National Railway

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

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.