CN raises 2026 guidance after second-quarter revenue, earnings growth

Canadian National Railway Co. raised its full-year financial guidance after reporting higher revenue and earnings in the second quarter, citing strong volume growth and operational performance.

CN says revenue for the quarter ended June 30 rose 11 per cent to $4.753 billion, while operating income increased nine per cent to $1.781 billion. Net income rose seven per cent to $1.249 billion.

Diluted earnings per share increased 10 per cent to $2.06, while adjusted diluted EPS rose 11 per cent to $2.08.

The railway’s gross ton miles increased three per cent to 121.082 billion, while revenue ton miles rose five per cent to 62.250 billion. CN said the results were supported by strong commercial and service performance, particularly in grain and other markets.

“I want to thank the CN team for the strong results this quarter, which reflect their discipline, focus, and execution,” said Tracy Robinson, president and chief executive officer, CN. “We delivered on our key commitments, with solid operational and commercial performance, improved productivity, strong cash flow generation, and continued financial discipline. We are raising our full-year guidance, supported by sustained business momentum and our continued ability to deliver results for our customers.”

CN now expects low single-digit growth in revenue ton miles in 2026, compared with its previous forecast for flat growth. The company also raised its outlook for adjusted diluted EPS growth to the mid-to-high single-digit range.

Free cash flow for the first half of 2026 was $1.842 billion, up 19 per cent from the same period last year. CN also repurchased approximately 2.9 million shares during the second quarter for $454 million.

The company said it continues to plan for approximately $2.8 billion in capital investment in 2026, net of amounts reimbursed by customers.

CN’s board has approved a quarterly dividend of $0.915 per common share, payable Sept. 29 to shareholders of record as of Sept. 8.