Canadian National Railway (NYSE:CNI) Announces Earnings Results

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

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

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

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 Trading of Canadian National Railway

Hedge funds have recently modified their holdings of the stock. AQR Capital Management LLC acquired a new stake in shares of Canadian National Railway in the 1st quarter worth about $311,000. Focus Partners Wealth boosted its stake 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 acquiring an additional 1,146 shares during the last quarter. Schnieders Capital Management LLC. purchased a new position in Canadian National Railway in the second quarter valued at approximately $202,000. EverSource Wealth Advisors LLC lifted its position in shares of 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 valued at $116,000 after buying an additional 383 shares during the last quarter. Finally, Baird Financial Group Inc. boosted its position in Canadian National Railway by 2.9% during the second quarter. Baird Financial Group Inc. now owns 17,094 shares of the transportation company’s stock worth $1,778,000 after purchasing an additional 474 shares during the period. Institutional investors own 80.74% of the company’s stock.

Analysts Set New Price Targets

Several equities research analysts have recently commented on CNI shares. Barclays lifted 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. Weiss Ratings reiterated a “hold (c-)” rating on shares of Canadian National Railway in a research report on Wednesday, October 8th. Zacks Research upgraded Canadian National Railway from a “strong sell” rating to a “hold” rating in a report on Friday, November 28th. Royal Bank Of Canada raised their price target on shares of Canadian National Railway from $148.00 to $158.00 and gave the stock an “outperform” rating in a research note on Monday, November 3rd. Finally, Citigroup decreased their price objective on Canadian National Railway from $120.00 to $119.00 and set a “buy” rating for the company in a report on Thursday, January 8th. One equities research 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 stock. According to MarketBeat.com, Canadian National Railway currently has an average rating of “Moderate Buy” and an average price target of $117.64.

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.