CN (CNI) Up 6% Since Last Earnings Report: Can It Continue?

It has been about a month since the last earnings report for Canadian National (CNI). Shares have added about 6% in that time frame, outperforming the S&P 500.

Will the recent positive trend continue leading up to its next earnings release, or is CN due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.

Canadian National Q1 Earnings In Line

Canadian National reported first-quarter 2026 results, wherein earnings met the Zacks Consensus Estimate and revenues beat the same.

Earnings of $1.31 per share (C$1.87) met the Zacks Consensus Estimate and increased 1.6% year over year. Revenues amounted to $3.19 billion (C$4.38 billion), surpassed the Zacks Consensus Estimate by 0.8% and rose 4.1% year over year.

Revenue ton-miles (RTMs or a measure of volumes) increased 3% year over year. Carloads rose 1.8% on a year-over-year basis. Freight revenues per RTM fell 3.4% year over year.

Operating expenses for the first quarter of 2026 increased by 1.3% to C$2.83 billion year over year. The operating income fell 2% from first-quarter 2025 actuals. The operating ratio, defined as operating expenses as a percentage of revenues on an adjusted basis, improved by 120 basis points to 64.6% in the first quarter of 2026.

CNI’s Q1 Segmental Highlights

Freight revenues, which contributed 97.4% to the top line, decreased 0.5% year over year. Freight revenues in petroleum and chemicals, grain and fertilizers, and intermodal rose 1.4%, 10.3% and 2.3%, year over year, respectively. Metals and minerals, forest products, coal and automotive fell 10.5%, 11% and 5.5% on a year-over-year basis.

Segment-wise, carloads in petroleum and chemicals, grain and fertilizers, intermodal and automotive segments increased 4%, 10%, 3% and 10% on a year-over-year basis.

Carloads in the metals and minerals remained flat on a year over year basis. The same in the forest products, coal and automotive segments decreased by 8%, 8% and 6% respectively on a year-over-year basis.

CNI’s Liquidity

Canadian National ended the first quarter of 2026 with cash and cash equivalents of C$573 million compared with C$350 million at the end of the fourth quarter of 2025. CNI exited the March-end quarter with a long-term debt of C$20.5 billion compared with C$20.3 billion at the close of the December quarter of 2025.

CNI generated C$1.27 billion of cash from operating activities. Free cash flow was C$900 million.

CNI’s Outlook

For full-year 2026, CNI anticipates earnings per share (EPS) growth to slightly exceed the RTMs volume growth and plans to invest approximately C$2.8 billion in its capital program, net of amounts reimbursed by customers. Volume growth in terms of RTMs is anticipated to remain flat.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a flat trend in estimates review.

VGM Scores

At this time, CN has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

CN has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

CN is part of the Zacks Transportation - Rail industry. Over the past month, CSX (CSX), a stock from the same industry, has gained 0.8%. The company reported its results for the quarter ended March 2026 more than a month ago.

CSX reported revenues of $3.48 billion in the last reported quarter, representing a year-over-year change of +1.7%. EPS of $0.43 for the same period compares with $0.34 a year ago.

For the current quarter, CSX is expected to post earnings of $0.48 per share, indicating a change of +9.1% from the year-ago quarter. The Zacks Consensus Estimate has changed -0.3% over the last 30 days.

CSX has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of D.

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This article originally published on Zacks Investment Research (zacks.com).

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