Canada's CN Railway beats Q2 revenue estimates, lifts 2026 outlook

Canadian National Railway

24/07/2026 12:47

    

    Overview
  
Canada rail operator's Q2 revenue rose 11%, beating analyst expectations
Adjusted EPS for Q2 rose 11% and beat analyst expectations
Company repurchased C$454 mln in shares during the quarter

    

    Outlook
  
Canadian National Railway raises 2026 guidance to low single-digit revenue ton miles (RTM) growth
Company now expects 2026 adjusted diluted EPS growth in mid-to-high single digits
CN notes heightened demand risk from volatile macroeconomic conditions and global trade tensions

    

    Result Drivers
  
GRAIN AND ENERGY VOLUMES - Higher shipments of grain and energy products drove overall volume growth, with RTMs up 5% year over year
SEGMENT REVENUE GAINS - Revenue growth was led by grain and fertilizers (up 18%), petroleum and chemicals (up 16%), and automotive (up 18%)
FUEL EFFICIENCY - Record first half and second quarter fuel efficiency contributed to operational performance

    
Company press release: ID:nGNX37csT3

    

    Key Details
  

            Metric
          

            Beat/Miss
          

            Actual
          

            Consensus Estimate
          
Q2 Revenue
Beat
C$4.75 bln
C$4.61 bln (19 Analysts)
Q2 Adjusted EPS
Beat
C$2.08
C$1.96 (20 Analysts)
Q2 EPS
 
C$2.06
 
Q2 Adjusted Net Income
Beat
C$1.26 bln
C$1.18 bln (10 Analysts)
Q2 Net Income
 
C$1.25 bln
 

    

    Analyst Coverage
  
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 11 "strong buy" or "buy", 11 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the ground freight & logistics peer group is "buy"
Wall Street's median 12-month price target for Canadian National Railway Co is C$174.00, about 5.4% below its July 23 closing price of C$183.92
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 18 three months ago

    

    Reuters Recommended Reads
  
July 23 - Canadian trucking firm Mullen Group's Q2 revenue beats on acquisitions
July 22 - CSX Q2 revenue beats on volume growth, fuel surcharges and higher pricing
July 22 - Freight group DSV's shares slide 15% as cash flow falls, earnings disappoint

    
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)