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

Canadian National Railway (NYSE:CNI) (TSE:CNR) posted its earnings results on Friday. The transportation company reported $1.49 earnings per share for the quarter, beating the consensus estimate of $1.43 by $0.06, Zacks reports. The company had revenue of $3.24 billion for the quarter, compared to analyst estimates of $4.43 billion. Canadian National Railway had a net margin of 26.86% and a return on equity of 21.50%. Canadian National Railway’s revenue was up 2.4% on a year-over-year basis. During the same period in the previous year, the business 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 Down 4.8%

Shares of CNI opened at $96.23 on Friday. The company’s 50-day simple moving average is $98.10 and its 200-day simple moving average is $96.16. The company has a debt-to-equity ratio of 0.92, a quick ratio of 0.42 and a current ratio of 0.60. Canadian National Railway has a 1 year low of $90.74 and a 1 year high of $108.75. The stock has a market capitalization of $59.12 billion, a PE ratio of 18.26, a P/E/G ratio of 2.11 and a beta of 0.96.

Analysts Set New Price Targets

Several research analysts recently weighed in on CNI shares. Barclays increased their price objective on 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 increased their price target on Canadian National Railway from $115.00 to $116.00 and gave the stock a “positive” rating in a report on Monday, November 3rd. Zacks Research raised Canadian National Railway from a “strong sell” rating to a “hold” rating in a research report on Friday, November 28th. Wells Fargo & Company decreased their target price on shares of Canadian National Railway from $117.00 to $110.00 and set an “overweight” rating on the stock in a research report on Monday, October 6th. Finally, Vertical Research raised shares of Canadian National Railway from a “hold” rating to a “buy” rating in a research note on Monday, January 5th. One investment analyst has rated the stock with a Strong Buy rating, nine have given a Buy rating, nine have issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $117.64.

Institutional Investors Weigh In On Canadian National Railway

Hedge funds have recently added to or reduced their stakes in the business. AQR Capital Management LLC purchased a new stake in shares of Canadian National Railway during the first quarter worth $311,000. Focus Partners Wealth boosted its holdings in Canadian National Railway by 11.1% in the first quarter. Focus Partners Wealth now owns 11,514 shares of the transportation company’s stock valued at $1,122,000 after purchasing an additional 1,146 shares during the period. Schnieders Capital Management LLC. acquired a new position in Canadian National Railway during the 2nd quarter worth $202,000. EverSource Wealth Advisors LLC increased 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 purchasing an additional 383 shares during the period. Finally, Baird Financial Group Inc. raised its position in Canadian National Railway by 2.9% in the 2nd quarter. Baird Financial Group Inc. now owns 17,094 shares of the transportation company’s stock valued at $1,778,000 after purchasing an additional 474 shares in the last quarter. 80.74% of the stock is currently owned by institutional investors and hedge funds.

Canadian National Railway News Roundup

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.

Canadian National Railway Company Profile

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.