CN beats Q3 profit estimates, backs FY forecast

Canadian National Railway Co

31/10/2025 11:39

Overview

CN Q3 revenue grows 1% yr/yr but misses analyst expectations

Adjusted EPS for Q3 beats consensus, reflecting strong operational performance

Company repurchased nearly 8 mln shares for about C$1 bln

Outlook

Company maintains 2025 EPS growth guidance in mid-to-high single digits

Company plans 2026 capital expenditures of C$2.8 bln, down C$600 mln from 2025, to enhance free cash flow

Result Drivers

PRODUCTIVITY IMPROVEMENTS - CN achieved C$75 mln in labor cost reductions, contributing to earnings growth

SHARE REPURCHASES - Repurchased nearly 8 million shares for approximately C$1 billion, impacting financial results

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 Revenue
Miss
C$4.16 bln
C$4.17 bln (19 Analysts)
Q3 Adjusted EPS
Beat
C$1.83
C$1.77 (21 Analysts)
Q3 EPS
C$1.83
Q3 Adjusted Net Income
Beat
C$1.13 bln
C$1.13 bln (16 Analysts)
Q3 Net Income
C$1.13 bln
Q3 Adjusted Operating Income
Beat
C$1.60 bln
C$1.58 bln (19 Analysts)
Q3 Operating Income
C$1.60 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 13 "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$153.00, about 14.7% above its October 30 closing price of C$130.55

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

Press Release: ID:nGNXDh9DN

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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.)