Canadian National Railway (CNI) Q3 2025 Earnings
How Did CNI Stock React to Q3 2025 Earnings?
S&P 500 over the same 30 days: +0.27%.
Did CNI Beat Earnings? Q3 2025 Results
Yes. Canadian National Railway reported Q3 2025 earnings of $1.83 a share on Oct 31, 2025, beating the $1.77 consensus estimate by 3.3%. Revenue was $4.2B against a $4.2B estimate.
Canadian National Railway posted a stronger-than-expected third quarter, with diluted EPS of $1.83 beating the $1.77 consensus estimate by 3.30% as the freight giant navigated a cautious macro environment with notable operational discipline. Revenue rose 1.3% year-over-year to $4.17 billion, edging past the $4.15 billion consensus by 0.34%, while net income climbed 5% to $1.14 billion. The single most material driver behind the beat was a sharp improvement in cost control, with the operating ratio tightening 170 basis points to 61.4% and fuel expenses falling 19%, aided partly by the April 2025 elimination of Canada's federal carbon tax. Intermodal revenue surged 11% to $980.00 million, benefiting from a favorable prior-year comparison that included a labor disruption. Free cash flow jumped 36% to $793.00 million, underscoring the efficiency gains CEO Tracy Robinson has championed. CN maintained its full-year guidance for mid-to-high single-digit adjusted EPS growth, while flagging heightened demand uncertainty tied to global trade tensions and U.S. tariffs as risks heading into year-end.
- Intermodal volumes surged 11% driven by recovery from prior-year TCRC labor disruption
- Operating ratio improved 170 basis points to 61.4% through cost discipline
- Fuel expense decreased 19% due to lower fuel prices and elimination of Canadian federal carbon tax
- Freight rate increases across all commodity groups
- Higher exports of Canadian metallurgical coal and U.S. grain
- Improved operational metrics: train length up 3%, fuel efficiency improved 2%, network train speed up 2%
- GTMs per average employee increased 6% reflecting productivity gains
“I want to thank the entire CN team for delivering a strong quarter that combined solid performance with excellent customer service. Our seasoned team of railroaders continues to run a safe, on time, and efficient operation focused on service, and capturing every freight movement opportunity across our unique network and diversified portfolio.”
Canadian National Railway CEO, on the earnings call
What Was Canadian National Railway's Outlook in Q3 2025?
CN maintains its 2025 guidance for mid-to-high single digit adjusted diluted EPS growth and continues to invest approximately C$3.35 billion in its capital program (net of customer reimbursements). For 2026, the company is guiding capital expenditures to C$2.8 billion (net of customer reimbursements), down nearly C$600 million from 2025 levels, to drive increased free cash flow. CN assumes slightly positive growth in North American industrial production in 2025, RTM growth in the low single-digit range, the Canadian dollar at US$0.70-0.75, and WTI crude oil at US$60-70 per barrel. The 2025/2026 Canadian grain crop is now assumed to be above its five-year average (upgraded from in-line). CN notes heightened demand risk from volatile macroeconomic conditions and global trade tensions.
CNI YoY Financials
| Metric | Q3 2025 | Q3 2024 | Year over year |
|---|---|---|---|
| Revenue | $4.2B | $4.1B | +1.3% |
| Operating Income | $1.6B | $1.5B | +6.0% |
| Net Income | $1.1B | $1.1B | +5.0% |
CNI Revenue by Segment
CNI Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.