Canadian National Railway Q1 adjusted EPS misses on cost pressures

Canadian National Railway Co

29/04/2026 12:39

Overview

Canada rail operator's Q1 revenue dipped 1% yr/yr, meeting analyst expectations

Adjusted EPS for Q1 declined 3% and missed analyst expectations

Company repurchased about 6 mln shares for C$869 mln in Q1

Outlook

Canadian National Railway expects 2026 RTM volume growth to be flattish

Company expects 2026 adjusted diluted EPS growth to slightly exceed volume growth

Canadian National Railway plans to invest about C$2.8 bln in its 2026 capital program

Result Drivers

COST PRESSURES - Co said higher costs from winter conditions, incidents, and a higher effective tax rate weighed on financial results

OPERATIONAL GAINS - Record RTMs, improved employee productivity, and fuel efficiency supported operational performance

MIXED VOLUME TRENDS - Volume growth in grain and fertilizers offset by declines in other segments; overall RTMs up 3%

Company press release: ID:nGNX64qzKs

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Meet
C$4.38 bln
C$4.38 bln (17 Analysts)
Q1 Adjusted EPS
Miss
C$1.80
C$1.81 (20 Analysts)
Q1 EPS
C$1.87
Q1 Adjusted Net Income
Meet
C$1.10 bln
C$1.10 bln (10 Analysts)
Q1 Net Income
C$1.15 bln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 10 "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$157.00, about 0.2% below its April 28 closing price of C$157.36

The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 17 three months ago

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.)