CANADIAN NATIONAL RAILWAY CO (CNI): Financial results for Q3 2026
CANADIAN NATIONAL RAILWAY CO (CNI) furnished an SEC Form 6-K — earnings release. PRESS RELEASE CN Delivers Strong Third Quarter Performance • Delivered diluted earnings per share (EPS) of C$2.00, an increase of 9% and adjusted diluted EPS of C$2.16, an increase of 18%, or 17% at constant currency (1) • Generated free cash flow of C$2,918 million, an increase
How this was made
The 30-second read
Why it matters
The earnings beat and guidance suggest a positive outlook for the rail sector and may drive short‑term buying interest in CNI.
Market read
The release provides fresh earnings data for a major transportation company, offering a clear trading catalyst.
What to watch
Potential headwinds from fuel price volatility and macroeconomic slowdown could temper upside.
CN Delivers Strong Third Quarter Performance
Third-quarter total revenues increased 15%, adjusted operating income increased 16%, adjusted diluted EPS increased 18%, and nine-month free cash flow increased 25%. Growth was broad across freight categories, while the reported operating ratio increased and included asset impairments and rail-consolidation advisory costs.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | CA$4.77B | – | 15% |
| Nine months 2026 total revenuesGAAP | CA$13.90B | – | 8% |
| Q3 2026 freight revenuesGAAP | CA$4.57B | – | 15% |
| Nine months 2026 freight revenuesGAAP | CA$13.4B | – | 8% |
| Q3 2026 operating incomeGAAP | CA$1.73B | – | 8% |
| Nine months 2026 operating incomeGAAP | CA$5.06B | – | 4% |
| Q3 2026 adjusted operating incomenon-GAAP | CA$1.86B | – | 16% |
| Nine months 2026 adjusted operating incomenon-GAAP | CA$5.23B | – | 8% |
| Q3 2026 operating expensesGAAP | CA$3.04B | – | – |
| Nine months 2026 operating expensesGAAP | CA$8.84B | – | – |
| Q3 2026 adjusted operating expensesnon-GAAP | CA$2.91B | – | – |
| Nine months 2026 adjusted operating expensesnon-GAAP | CA$8.68B | – | – |
| Q3 2026 operating ratioGAAP | 63.7% | – | an increase of 230 basis points |
| Nine months 2026 operating ratioGAAP | 63.6% | – | – |
| Q3 2026 adjusted operating rationon-GAAP | 61.0% | – | an improvement of 40 basis points |
| Nine months 2026 adjusted operating rationon-GAAP | 62.4% | – | – |
| Q3 2026 net incomeGAAP | CA$1.21B | – | 6% |
| Nine months 2026 net incomeGAAP | CA$3.60B | – | 4% |
| Q3 2026 adjusted net incomenon-GAAP | CA$1.31B | – | 15% |
| Nine months 2026 adjusted net incomenon-GAAP | CA$3.67B | – | 6% |
| Q3 2026 diluted earnings per shareGAAP | C$2.00 | – | 9% |
| Nine months 2026 diluted earnings per shareGAAP | C$5.93 | – | 8% |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | C$2.16 | – | 18% |
| Nine months 2026 adjusted diluted earnings per sharenon-GAAP | C$6.03 | – | 9% |
| Q3 2026 adjusted diluted EPS at constant currencynon-GAAP | C$2.14 | – | 17% |
| Q3 2026 net cash provided by operating activitiesGAAP | CA$1.90B | – | – |
| Nine months 2026 net cash provided by operating activitiesGAAP | CA$4.78B | – | – |
| Q3 2026 net cash used in investing activitiesGAAP | CA$828M | – | – |
| Nine months 2026 net cash used in investing activitiesGAAP | CA$1.86B | – | – |
| Q3 2026 free cash flownon-GAAP | CA$1.08B | – | – |
| Nine months 2026 free cash flownon-GAAP | CA$2.92B | – | 25% |
| Q3 2026 gross property additionsGAAP | CA$805M | – | – |
| Nine months 2026 gross property additionsGAAP | CA$1.94B | – | – |
| Q3 2026 share repurchasesGAAP | CA$676M | – | – |
| Nine months 2026 share repurchasesGAAP | CA$2.00B | – | – |
| Q3 2026 dividends per shareGAAP | C$0.9150 | – | – |
| Nine months 2026 dividends per shareGAAP | C$2.7450 | – | – |
| Twelve months ended September 30, 2026 adjusted EBITDAnon-GAAP | CA$9.08B | – | 5% |
| Adjusted debt-to-adjusted EBITDA multiple as at and for the twelve months ended September 30, 2026non-GAAP | 2.61 times | – | – |
| Debt as at and for the twelve months ended September 30, 2026GAAP | CA$22.81B | – | – |
| Adjusted debt as at and for the twelve months ended September 30, 2026non-GAAP | CA$23.68B | – | – |
| Q3 2026 gross ton milesother | 116.3B | – | 4% |
| Q3 2026 revenue ton milesother | 59.38B | – | 4% |
| Q3 2026 carloadsother | 1.36M | – | — % |
| Q3 2026 freight revenue per RTMother | 7.70 (cents) | – | 10% |
| Q3 2026 freight revenue per carloadother | C$3,353 | – | 15% |
| Q3 2026 fuel efficiencyother | 0.814 (US gallons of locomotive fuel consumed per 1,000 GTMs) | – | 2% more efficient |
| Q3 2026 operating expenses per GTMother | 2.62 (cents) | – | 14% |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Petroleum and chemicalsRTMs increased 5% and freight revenue per RTM increased 11%. | CA$1B | – | 17% |
| Metals and mineralsRTMs increased 6% and freight revenue per RTM increased 11%. | CA$561M | – | 18% |
| Forest productsRTMs decreased 4% while freight revenue per RTM increased 14%. | CA$495M | – | 10% |
| CoalRTMs decreased 5% while freight revenue per RTM increased 9%. | CA$246M | – | 4% |
| Grain and fertilizersRTMs increased 12% and freight revenue per RTM increased 6%. | CA$923M | – | 19% |
| IntermodalRTMs decreased 3% while freight revenue per RTM increased 12%. | CA$1.06B | – | 9% |
| AutomotiveRTMs increased 20% and freight revenue per RTM increased 9%. | CA$284M | – | 31% |
| Other revenuesReported as other revenues. | CA$197M | – | 13% |
2026 outlook
- NoteThe Company continues to assume to deliver low single-digit RTM growth in 2026.
- NoteThe Company continues to expect adjusted diluted EPS growth in the mid-to-high single-digit range and is currently tracking more towards the upper end of this range.
- NoteIn 2026, CN is still on track to invest approximately C$2.8 billion in its capital program, net of amounts reimbursed by customers.
- NoteThe Company also expects to continue improving its free cash flow conversion throughout 2026.
- NoteFor the balance of 2026, the value of the Canadian dollar in U.S. currency will be $0.71.
- NoteThe average price of crude oil (West Texas Intermediate) will be in the range of US$80 - US$110 per barrel.
Capital returns
- Repurchased approximately 3.9 million shares in the third quarter of 2026 for C$676 million.
- A quarterly dividend of ninety-one and a half cents (C$0.9150) per common share will be paid on December 30, 2026, to shareholders of record at the close of business on December 9, 2026.
- Nine months 2026 share repurchases were C$1,999 million.
- Nine months 2026 dividends per share were C$2.7450.
What drove it
- Commercial momentum and service performance were supported by a 4% increase in GTMs and a 4% increase in RTMs.
- Grain and fertilizers revenue increased 19%, automotive revenue increased 31%, metals and minerals revenue increased 18%, and petroleum and chemicals revenue increased 17%.
- Total freight revenue per RTM increased 10% to 7.70 cents, while total carloads were 1,364 (thousands) compared with 1,368 (thousands).
- GTMs per average number of employees increased 7% to 4,888 (thousands).
- Fuel efficiency of 0.814 was 2% more efficient and the Company reported record third quarter fuel efficiency performance.
Concerns
- The GAAP operating ratio increased 230 basis points to 63.7%, while operating expenses per GTM increased 14% to 2.62 cents.
- Q3 operating expenses included C$118 million of asset impairments and C$14 million of advisory costs related to rail consolidation matters.
- Car velocity decreased 2% to 207, and through network train speed decreased 2% to 19.1.
- Coal RTMs decreased 5%, forest products RTMs decreased 4%, and intermodal RTMs decreased 3%.
- CN notes a heightened demand risk as a result of volatile macroeconomic conditions, geopolitical conflicts and global trade tensions.
What to watch
- Delivery of low single-digit RTM growth and adjusted diluted EPS growth in the mid-to-high single-digit range, with CN tracking toward the upper end.
- Execution of the approximately C$2.8 billion 2026 capital program, net of amounts reimbursed by customers.
- Further free cash flow conversion improvement throughout 2026.
- The assumed 2026/2027 Canadian and U.S. grain crops being above their respective five-year averages.
- Operating performance including car velocity, train speed, fuel efficiency and the operating ratio.
Balance sheet and cash flow
- Nine-month free cash flow was C$2,918 million, consisting of net cash provided by operating activities of C$4,780 million and net cash used in investing activities of C$1,862 million.
- Gross property additions were C$805 million in Q3 2026 and C$1,939 million in the first nine months of 2026.
- Debt as at and for the twelve months ended September 30, 2026 was C$22,812 million.
- Adjusted debt as at and for the twelve months ended September 30, 2026 was C$23,679 million.
- Adjusted debt-to-adjusted EBITDA was 2.61 times as at and for the twelve months ended September 30, 2026.
Analysis
CN reported a strong third quarter, with total revenues of C$4,771 million, up 15%, and freight revenues of C$4,574 million, also up 15%. Commercial and service momentum produced 4% growth in both GTMs and RTMs. Revenue growth was broad: automotive increased 31%, grain and fertilizers increased 19%, metals and minerals increased 18%, and petroleum and chemicals increased 17%. Pricing and mix were important, as total freight revenue per RTM increased 10% to 7.70 cents while total carloads were reported at 1,364 (thousands), compared with 1,368 (thousands).
Profit growth was affected by significant items. GAAP operating income rose 8% to C$1,730 million and GAAP net income rose 6% to C$1,209 million. The quarter included C$118 million of asset impairments related to discontinued components of dispatching and back-office information technology projects, plus C$14 million of rail-consolidation advisory costs. Excluding these items, adjusted operating income increased 16% to C$1,862 million and adjusted net income increased 15% to C$1,307 million. Adjusted diluted EPS increased 18% to C$2.16, or 17% at constant currency.
Cost and service indicators warrant attention. The GAAP operating ratio increased 230 basis points to 63.7%, while operating expenses per GTM increased 14% to 2.62 cents. The adjusted operating ratio improved 40 basis points to 61.0%, separating the impact of the impairment and advisory costs. Fuel efficiency improved 2% to 0.814, and GTMs per average number of employees increased 7% to 4,888 (thousands). However, car velocity declined 2% to 207 and through network train speed declined 2% to 19.1.
Cash generation and shareholder returns remained substantial. Nine-month free cash flow increased 25% to C$2,918 million, with C$4,780 million of operating cash flow and C$1,862 million of cash used in investing activities. CN repurchased approximately 3.9 million shares for C$676 million in the quarter and declared a C$0.9150 per-share fourth-quarter dividend. Adjusted debt-to-adjusted EBITDA was 2.61 times as at and for the twelve months ended September 30, 2026.
The company maintained its 2026 outlook for low single-digit RTM growth and mid-to-high single-digit adjusted diluted EPS growth, stating that it is tracking more toward the upper end of that EPS range. It remains on track to invest approximately C$2.8 billion in its capital program and expects continuing improvement in free cash flow conversion. The outlook assumes above-five-year-average 2026/2027 grain crops in Canada and the U.S., while CN identified heightened demand risk from volatile macroeconomic conditions, geopolitical conflicts and global trade tensions.
Management, verbatim
I am very proud of CN’s dedicated railroaders for delivering another strong quarter. Their relentless focus on safely executing the plan across our unique network continues to strengthen service, enhance productivity, and support our customers’ success. Together with our disciplined financial management, these rigorous efforts position CN to deliver profitable growth, continue to create long-term value for our shareholders, and capitalize on the opportunities ahead.
Tracy Robinson, President and Chief Executive Officer, CN
Not in the filing
stated, not guessed- Gross margin was not reported.
- GAAP gross margin was not reported.
- Non-GAAP gross margin was not reported.
- Tax rate was not reported.
- Quarter-end cash and cash equivalents were not reported.
- A prior earnings-release outlook was not provided, so no comparison with prior guidance is available.
- Sequential financial comparisons were not reported.
- Segment operating income or profit was not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Canadian National Railway filed a Form 6‑K reporting its Q3 2026 results, highlighting EPS growth, revenue increase, and strong free cash flow.
Ticker impact
CN reported Q3 2026 diluted EPS of C$2.00, a 9% increase, and revenue of C$4,771 million, up 15% year over year.
likely modest upside as the beat and strong cash flow may lift the stock
EPS beat and revenue growth exceed expectations, supporting a bullish view.
Market effects
Positive earnings may boost sentiment in the transportation and logistics sector.
Canadian market could see a lift as a major rail carrier reports strong results.
US-listed CNI may influence broader market sentiment on industrial earnings.
Counterpoint
If the market has already priced in the beat, the stock may face profit-taking pressure.
Key entities
- CompanyCanadian National Railway
North American rail operator listed on NYSE as CNI.
- ExecutiveTracy Robinson
President and CEO of CN who led the earnings call.
