Canadian National Railway (CNI) Q3 2026 Earnings
Adjusted EPS excludes asset impairments of $118 million ($87 million after tax, $0.14 per diluted share) related to discontinued IT project components, and advisory costs related to rail consolidation matters (UP–NS merger STB review) of $14 million ($11 million after tax, $0.02 per diluted share). GAAP diluted EPS was $2.00.
How Did CNI Stock React to Q3 2026 Earnings?
Did CNI Beat Earnings? Q3 2026 Results
No. Canadian National Railway reported Q3 2026 earnings of $1.55 a share on Oct 30, 2026, missing the $2.08 consensus estimate by 25.8%. Revenue was $3.4B against a $4.7B estimate.
Canadian National Railway delivered a sharply disappointing third quarter, with adjusted EPS of $1.55 falling 25.77% short of the $2.08 consensus estimate and revenue of $3.42 billion missing expectations by 26.61%, even as that top line surged 59.5% year over year. The headline miss reflected asset impairments of $118 million tied to discontinued IT project components, along with advisory costs of $14 million connected to the STB review of the Union Pacific-Norfolk Southern merger; stripping those out, GAAP diluted EPS came in at $2.00. Beneath the headline numbers, underlying freight trends were more constructive, with automotive revenue up 31%, grain and fertilizers climbing 19%, and fuel efficiency reaching a third-quarter record, though weaker Canadian metallurgical coal exports and softness in international intermodal provided meaningful offsets. Looking ahead, CN reiterated its expectation for low single-digit revenue ton-mile growth in 2026 and mid-to-high single-digit adjusted EPS growth, noting it is currently tracking toward the upper end of that range, even as trade tensions and a Moody's negative outlook shift add uncertainty to the path forward.
- GTMs up 4% to 116,264 million and RTMs up 4% to 59,383 million
- Volume gains from higher Canadian and U.S. grain exports, refined petroleum products and metals, partly offset by lower Canadian metallurgical coal exports and international intermodal
- Freight revenue per RTM up 10% to 7.70 cents on higher fuel surcharge rates, freight rate increases and a weaker Canadian dollar; freight revenue per carload up 15% to $3,353
- Fuel surcharge revenues up $343 million in Q3 2026
- Grain and fertilizers RTMs up 12%; automotive RTMs up 20% on higher imports and transborder finished vehicle shipments
- Petroleum and chemicals volumes up on refined products (gas and diesel) demand and lapping prior-year customer production disruptions
- Forest products RTMs down 4% on lower lumber and panel shipments amid higher cross-border tariffs and duties
- Intermodal RTMs down 3% on lower international shipments via Prince Rupert and Halifax, partly offset by Vancouver
- Other revenues up 13% on higher vessel revenues from the iron ore supply chain
- Operating expenses rose 19% to $3,041 million on higher fuel prices, asset impairment, wage increases and higher purchased services, partly offset by lower headcount
- Fuel expense up 58% to $662 million from $418 million on higher average fuel price ($6.09 vs $3.82 per US gallon)
- Record third-quarter fuel efficiency of 0.814 US gallons per 1,000 GTMs, 2% more efficient
- GTMs per average employee up 7% to 4,888 thousand on lower headcount
- Asset impairment of $118 million on discontinued dispatching and back-office IT project components
- Advisory costs of $14 million in Q3 ($48 million in nine months) related to UP–NS merger STB review
- Interest expense rose to $245 million from $227 million on higher average debt
- Effective tax rate of 25.4% vs 24.4% a year earlier
- Adjusted diluted EPS at constant currency of $2.14
- Injury frequency rate improved to 0.80 from 1.18; accident rate improved to 1.51 from 1.92
“I am very proud of CN’s dedicated railroaders for delivering another strong quarter. Their relentless focus on safely executing the plan across our unique network continues to strengthen service, enhance productivity, and support our customers’ success. Together with our disciplined financial management, these rigorous efforts position CN to deliver profitable growth, continue to create long-term value for our shareholders, and capitalize on the opportunities ahead.”
Canadian National Railway CEO, on the earnings call
What Is Canadian National Railway's Outlook?
CN continues to assume low single-digit RTM growth in 2026. It continues to expect adjusted diluted EPS growth in the mid-to-high single-digit range and is currently tracking toward the upper end of that range. It remains on track to invest approximately C$2.8 billion in its 2026 capital program, net of customer reimbursements, to improve network safety, efficiency and integrity and to support growth. It expects to keep improving free cash flow conversion. Net income tax payments are expected to be approximately C$1.4 billion in 2026, and pension contributions approximately C$60 million. CN now assumes the 2026/2027 Canadian and U.S. grain crops will be above their five-year averages. Other assumptions are a Canadian dollar of US$0.71 and WTI crude of US$80–US$110 per barrel for the balance of 2026. CN notes heightened demand risk from volatile macroeconomic conditions, geopolitical conflicts and global trade tensions.
CNI YoY Financials
| Metric | Q3 2026 | Q3 2025 | Year over year |
|---|---|---|---|
| Revenue | $3.4B | $2.1B | +59.5% |
| Operating Income | $1.2B | $825.6M | +50.0% |
| Net Income | $865.6M | $585.5M | +47.8% |
CNI Revenue by Segment
CNI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.