Canadian National Railway Q3 revenue beats on strong service execution

Canadian National Railway

30/10/2026 11:41

Overview
Canada rail operator's Q3 revenue rose 15% yr/yr, beating analyst expectations
Adjusted EPS for Q3 rose 18% yr/yr, beating analyst expectations
Company repurchased C$676 mln in shares during the quarter

Outlook
Company continues to expect low single-digit RTM growth in 2026
Company expects 2026 adjusted diluted EPS growth in mid-to-high single-digit range, tracking upper end
Company notes heightened demand risk due to volatile macroeconomic and geopolitical conditions

Result Drivers
SERVICE EXECUTION - Co said strong service execution and operational improvements enabled it to meet customer demand in key markets including grain and energy
VOLUME GROWTH - Co cited increased volumes, with GTMs and RTMs both up 4% yr/yr
FUEL EFFICIENCY - Co reported record Q3 fuel efficiency, contributing to operational performance

Company press release: ID:nGNX6GTbXZ

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Beat
C$4.77 bln
C$4.64 bln (19 Analysts)
Q3 Adjusted EPS
Beat
C$2.16
C$2.09 (20 Analysts)
Q3 EPS
 
C$2
 
Q3 Adjusted Net Income
Beat
C$1.31 bln
C$1.26 bln (9 Analysts)
Q3 Net Income
 
C$1.21 bln
 

Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 15 "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$183.50, about 5.7% above its October 29 closing price of C$173.68
The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 20 three months ago

Reuters Recommended Reads
Oct 29 - Railroad operator Canadian National's CFO to retire
Oct 29 - Canada's TFI International Q3 adjusted net income misses estimates
Oct 29 - Trinity Industries Q3 revenue rises on higher railcar deliveries

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(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.)