Canadian National Railway earnings: third quarter 2026

Canadian National Railway's sales rose 15% in the third quarter, mostly because it charged more for each unit of freight rather than hauling much more. A jump in fuel prices ate into that, and a one-off write-down pulled reported profit growth below sales growth. Profit on the company's adjusted measure still rose faster than sales. The company kept its earnings outlook for the year and said it is heading for the better end of it. The weaker side is cash: profit grew, but the cash coming in from running the business did not. ¹

Against what analysts expected

The analysts' average forecast on Nasdaq's earnings calendar was $1.49 a share, which appears to be in US dollars. CN reports in Canadian dollars: C$2.16 on its adjusted measure and C$2.00 as reported. The two cannot be set side by side directly. No figures are given on how analysts changed their forecasts afterwards. ¹²

The strong points

• Sales rose 15% to C$4,771 million, mostly because CN earned more for each unit of freight it hauled, while the number of carloads stayed flat. ¹
• On the company's own adjusted measure, which leaves out one-off items, earnings per share rose 18% to C$2.16. ¹

The weak points

• The fuel bill rose 58% to C$662 million, as the price CN paid per gallon jumped while the amount it used barely changed. ¹
• Profit grew, but the cash coming in from running the business was flat in the quarter at C$1,904 million. ¹
• Over nine months, share buybacks and dividends together came to more than the C$2,918 million of free cash flow, and short-term borrowing filled the gap. ¹

What the company expects

• CN kept its forecast that adjusted earnings per share will grow in the mid-to-high single digits this year, and says it is now heading towards the upper end of that range. ¹
• CN still expects freight volumes to grow at a low single-digit rate this year, but warns that a shaky economy, conflicts and trade tensions raise the risk of weaker demand. ¹

Our verdict on the quarter

A strong report. Sales and the company's adjusted profit both grew at a double-digit pace, and CN kept its yearly earnings outlook while pointing to the upper end of it. Dearer fuel and flat operating cash keep this from being an outstanding report.

The results as published

• The results release itself
• The filing it came with (SEC)

Notes

1. Canadian National Railway's results release, 30 October 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 30 October 2026. ↩