Canadian National Railway (NYSE:CNI) Releases Quarterly Earnings Results, Beats Expectations By $0.06 EPS

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

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

CNI opened at $96.23 on Friday. The company has a quick ratio of 0.42, a current ratio of 0.60 and a debt-to-equity ratio of 0.92. The stock’s 50 day moving average price is $98.10 and its two-hundred day moving average price is $96.16. The firm has a market capitalization of $59.12 billion, a P/E ratio of 18.26, a price-to-earnings-growth ratio of 2.11 and a beta of 0.96. Canadian National Railway has a 12-month low of $90.74 and a 12-month high of $108.75.

Analyst Ratings Changes

A number of brokerages have commented on CNI. Royal Bank Of Canada raised their price objective on Canadian National Railway from $148.00 to $158.00 and gave the stock an “outperform” rating in a research report on Monday, November 3rd. Barclays increased their price target on shares of Canadian National Railway from $97.00 to $101.00 and gave the stock an “equal weight” rating in a research report on Thursday, January 15th. Susquehanna boosted their price objective on shares of Canadian National Railway from $115.00 to $116.00 and gave the company a “positive” rating in a research report on Monday, November 3rd. Wall Street Zen upgraded shares of Canadian National Railway from a “sell” rating to a “hold” rating in a research note on Saturday, October 18th. Finally, CIBC upgraded shares of Canadian National Railway from a “neutral” rating to an “outperformer” rating and increased their target price for the stock from $146.00 to $151.00 in a research report on Friday, November 28th. One analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, nine have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $117.64.

Canadian National Railway News Summary

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 hedge funds have recently modified their holdings of the business. Brown Brothers Harriman & Co. boosted its holdings in Canadian National Railway by 10.9% in the 3rd quarter. Brown Brothers Harriman & Co. now owns 1,377 shares of the transportation company’s stock valued at $130,000 after purchasing an additional 135 shares during the period. Kestra Private Wealth Services LLC raised its holdings in Canadian National Railway by 2.7% in the 3rd quarter. Kestra Private Wealth Services LLC now owns 7,592 shares of the transportation company’s stock valued at $716,000 after acquiring an additional 202 shares in the last quarter. Ewing Morris & Co. Investment Partners Ltd. lifted its position in shares of Canadian National Railway by 4.8% in the 2nd quarter. Ewing Morris & Co. Investment Partners Ltd. now owns 4,593 shares of the transportation company’s stock worth $478,000 after acquiring an additional 212 shares during the period. Keel Point LLC grew its holdings in shares of Canadian National Railway by 14.7% during the 2nd quarter. Keel Point LLC now owns 2,882 shares of the transportation company’s stock worth $300,000 after purchasing an additional 370 shares in the last quarter. Finally, EverSource Wealth Advisors LLC increased its position in shares of Canadian National Railway by 52.1% during the second quarter. EverSource Wealth Advisors LLC now owns 1,118 shares of the transportation company’s stock valued at $116,000 after purchasing an additional 383 shares during the period. 80.74% of the stock is owned by institutional investors.

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.