Direct answer
Direct answer: Canadian National Railway, known as CN, reported a stronger third quarter on October 30, 2026. Revenue rose 15 percent from a year earlier to C$4.771 billion, net income rose 6 percent to C$1.209 billion, and adjusted earnings per share rose 18 percent to C$2.16. Freight volumes rose 4 percent, and CN kept its full year outlook unchanged, while also announcing a change of chief financial officer.
What happened
CN reported its results for the three months ended September 30, 2026. CN announced the results in a GlobeNewswire release on October 30, 2026, and Railway Age and The Canadian Press reported the same headline figures. Revenue was C$4.771 billion, up from C$4.165 billion in the same quarter a year earlier. Operating income rose 8 percent to C$1.730 billion, and adjusted operating income, which strips out one off items, rose 16 percent to C$1.862 billion.
On the bottom line, net income was C$1.209 billion, up 6 percent from a year earlier. Diluted earnings per share, which is profit divided by the number of shares, rose 9 percent to C$2.00. Adjusted diluted earnings per share rose 18 percent to C$2.16, beating the C$2.10 average analyst expectation reported by LSEG. The adjusted figures exclude C$118 million in asset impairments linked to discontinued technology projects and C$14 million in advisory costs linked to rail consolidation matters.
Freight volumes improved. Gross ton miles, a measure of how much weight was moved and how far, rose 4 percent to 116.264 billion, and revenue ton miles rose 4 percent to 59.383 billion. By freight group, grain and fertilizers revenue rose 19 percent, automotive revenue rose 31 percent, petroleum and chemicals revenue rose 17 percent, coal revenue rose 4 percent, and intermodal revenue rose 9 percent. Intermodal means freight moved in containers that switch between trains, trucks and ships without being unpacked.
CN also reported record third quarter fuel efficiency. Its locomotives used 0.814 US gallons of fuel per 1,000 gross ton miles, a 2 percent improvement from a year earlier. That mattered because fuel costs jumped: CN paid an average of C$6.09 per US gallon, compared with C$3.82 a year earlier, and fuel expense rose 58 percent to C$662 million.
For the first nine months of 2026, free cash flow rose 25 percent to C$2.918 billion. Free cash flow is cash left after a company pays for its day to day operations and its capital spending, such as new locomotives and track work. CN still plans about C$2.8 billion of capital investment in 2026. It kept its full year outlook: low single digit growth in revenue ton miles and mid to high single digit growth in adjusted diluted earnings per share, with results tracking toward the upper end of that range.
Alongside the results, CN announced a finance leadership change. Executive Vice President and Chief Financial Officer Ghislain Houle will retire effective February 1, 2027, after serving as chief financial officer since 2016. Jamie Lockwood, currently Vice President of Investor Relations and Special Projects, will succeed him, with Houle remaining through January 31, 2027 to help with the handover. The board also approved a fourth quarter dividend of C$0.915 per common share, payable December 30 to shareholders of record on December 9. A dividend is a cash payment a company makes to its shareholders.
Why it matters for beginners
Railways are a useful window on the real economy. When more grain, cars, fuel and containers move by rail, it usually means farms, factories and shops are busy. When volumes fall, it can signal slower demand. CN’s 4 percent volume rise, with growth in every freight group, therefore points to firmer activity in the quarter, even though the wider Canadian economy has looked soft. For context, see Canada’s economy stalling again in August.
The difference between reported and adjusted profit is also worth understanding. CN’s reported profit rose 6 percent, while its adjusted profit per share rose 18 percent. The gap is explained by the one off items CN stripped out, mainly the C$118 million impairment. Adjusted figures can help compare the underlying business from year to year, but they are the company’s own choice of what to leave out, so it is wise to read them next to the reported figures, not instead of them.
Fuel is the third lesson. A railway can move freight more efficiently and still face sharply higher fuel bills. CN used less fuel per ton mile than a year earlier, yet its total fuel expense rose 58 percent because the price per gallon jumped. That shows why costs, not just sales, decide how much profit a company keeps.
What to watch next
- Whether freight volumes keep growing in the fourth quarter, and whether grain, automotive and intermodal demand stays firm.
- Whether fuel prices ease, or keep eating into the benefit of better fuel efficiency.
- How the chief financial officer handover goes, with Jamie Lockwood taking over from Ghislain Houle on February 1, 2027.
- Whether CN finishes 2026 toward the upper end of its mid to high single digit adjusted earnings growth outlook.
- The dividend payment on December 30 to shareholders of record on December 9.
FAQ
What is Canadian National Railway?
Canadian National Railway, or CN, is Canada’s largest railway. It moves freight such as grain, cars, petroleum, chemicals, coal and containers across Canada and into the United States, using trains, terminals and port connections.
What are ton miles?
A ton mile measures one ton of freight moved one mile. Gross ton miles include the weight of the train itself, while revenue ton miles count only the freight that earns revenue. A rise in ton miles means more freight, heavier loads, longer journeys, or a mix of these.
Why did adjusted earnings rise faster than reported earnings?
Adjusted earnings strip out one off items. In this quarter CN excluded C$118 million in asset impairments and C$14 million in advisory costs. Removing those costs lifts the adjusted result above the reported result. That is why both figures are worth checking.
What does a dividend of C$0.915 per share mean?
It means shareholders on record on December 9 will receive C$0.915 in cash for each common share they hold, paid on December 30. A dividend is a way a profitable company returns some of its cash to shareholders, rather than keeping all of it for investment.