Canadian National Railway stock gains from strong Q3 execution

Canadian National Railway reported stronger third-quarter results on Friday, October 30, 2026, as revenue, freight volumes and adjusted earnings increased. Railway Age reported that the railroad also announced a planned change at the top of its finance organization.

For the quarter ended September 30, CN generated C$4.771 billion in revenue, 15% more than in the year-earlier period. Net income rose 6% to C$1.209 billion, while reported diluted earnings per share increased 9% to C$2.00. Adjusted diluted EPS reached C$2.16, up 18% year over year and 17% at constant currency.

Volumes and productivity support earnings

Gross ton miles increased 4% to 116.264 billion and revenue ton miles rose 4% to 59.383 billion. The result shows that freight growth was accompanied by stronger earnings conversion, with adjusted operating income up 16% to C$1.862 billion.

CN reported record third-quarter fuel efficiency, consuming 0.814 U.S. gallons of locomotive fuel per 1,000 gross ton miles, a 2% improvement from the prior year. Operating execution was mixed: through dwell increased to 7.1 hours and car velocity declined to 207 car miles per day, while the adjusted operating ratio improved 40 basis points to 61.0%.

For the first nine months of 2026, free cash flow reached C$2.918 billion, an increase of 25% from the comparable period. CN also repurchased about 3.9 million shares for C$676 million during the quarter, adding to shareholder returns while the company continues to invest in its network.

Outlook remains unchanged

CN reaffirmed its 2026 expectation for low single-digit revenue ton-mile growth and adjusted diluted EPS growth in the mid-to-high single-digit range. Management said results are tracking toward the upper end of that earnings range. The railroad still plans to invest about C$2.8 billion in its 2026 capital program, net of customer reimbursements.

The company also approved a fourth-quarter dividend of C$0.915 per common share. The payment is scheduled for December 30, 2026, to shareholders of record on December 9.

Finance leadership transition

Chief Financial Officer Ghislain Houle will remain in his role through January 31, 2027. Jamie Lockwood, currently CN's vice president of Investor Relations and Special Projects, will become CFO on February 1. Houle will then serve as a strategic adviser to President and CEO Tracy Robinson through March 31, when he is scheduled to retire.

Canadian National Railway stock traded at 110.75 euros on Lang & Schwarz at 11:07 CET on Monday, November 2, 2026. The quote provides a current trading reference, while the available market record did not establish a dated Xetra close for a percentage comparison.

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More news and analyses on Canadian National Railway stock will follow as the company reports on its outlook and leadership transition.