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

Canadian National Railway (NYSE:CNI) (TSE:CNR) announced its quarterly 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 net margin of 26.92% and a return on equity of 22.22%. The firm had revenue of $3.35 billion for the quarter, compared to analysts’ expectations of $3.27 billion. During the same quarter in the previous year, the company posted $1.83 EPS. The company’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 Stock Performance

NYSE CNI opened at $123.82 on Friday. The stock has a fifty day simple moving average of $121.69 and a 200-day simple moving average of $115.34. The company has a current ratio of 0.87, a quick ratio of 0.61 and a debt-to-equity ratio of 0.99. The stock has a market cap of $74.61 billion, a PE ratio of 21.57, a P/E/G ratio of 2.22 and a beta of 0.96. Canadian National Railway has a twelve month low of $90.74 and a twelve month high of $131.55.

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

Analyst Ratings Changes

A number of equities analysts have commented on CNI shares. Citizens Jmp began coverage on shares of Canadian National Railway in a research note on Wednesday, July 15th. They set a “market perform” rating on the stock. Benchmark reiterated a “hold” rating on shares of Canadian National Railway in a report on Monday, July 27th. Wells Fargo & Company increased their price target on shares of Canadian National Railway from $135.00 to $145.00 and gave the company an “overweight” rating in a research note on Monday, July 27th. Susquehanna dropped their price target on shares of Canadian National Railway from $142.00 to $130.00 and set a “neutral” rating for the company in a research note on Friday, October 2nd. Finally, Stephens upgraded shares of Canadian National Railway to a “hold” rating in a report on Wednesday, July 8th. Nine research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, Canadian National Railway has an average rating of “Hold” and a consensus target price 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.