Canadian National Railway Company (CNR) Q3 2026 earnings summary

Executive summary

• Q3 RTMs and GTMs rose 4%; adjusted diluted EPS increased 18% to C$2.16, supported by service execution, productivity and commercial gains.

• FY2026 adjusted EPS growth guidance was reaffirmed at mid-to-high single digits on low-single-digit RTM growth, with results tracking toward the upper end.

• Nine-month free cash flow increased 25% to C$2.918B, supporting shareholder returns and disciplined investment.

Financial highlights

• Revenue was C$4.771B, up 15%; constant-currency revenue increased 14%. Freight revenue was C$4.574B, up 15%.

• Reported diluted EPS was C$2.00, up 9%; adjusted diluted EPS was C$2.16, up 18%, or C$2.14 at constant currency, up 17%.

• Reported net income was C$1.209B, up 6%; adjusted net income was C$1.307B, up 15%.

• Adjusted operating ratio improved 40 bps to 61.0%; reported operating ratio was 63.7%, 230 bps higher YoY.

• Q3 operating income was C$1.730B, up 8%; adjusted operating income was C$1.862B, up 16%.

Outlook and guidance

• FY2026 guidance remains mid-to-high single-digit adjusted diluted EPS growth on low-single-digit RTM growth, tracking toward the upper end; stronger Q4 comparisons are incorporated.

• FY2026 capital investment is guided at C$2.8B, net of customer reimbursements.

• Balance-of-year assumptions include a C$0.71 exchange rate per US$1 and WTI at US$80–US$110 per barrel; 2026/2027 Canadian and U.S. grain crops are assumed above five-year averages.

• Current fuel spot rates imply a Q4 EPS tailwind of ~$0.10 and a 100–150 bps operating-ratio headwind.

• Longer-term EPS ambition is high-single-digit to low-double-digit growth; 2027 growth faces comparison with record grain volumes. Energy volumes are expected to grow steadily through 2027.