The slight revenue/earnings decline combined with improved cash flow and operational efficiency suggests a neutral-to-mixed market reaction. Monitor tariff/trade developments and the STB ruling on the UP-NS merger (revised application due April 30) which could materially impact CN's competitive position. Continued strong free cash flow supports buybacks and dividend growth.
Price Chart
Executive Summary
CN reported Q1 2026 earnings with revenue down 1% to $4,379M, net income down 1% to $1,146M, and adjusted diluted EPS down 3% to $1.80. Operating ratio worsened to 64.6% from 63.4%. Despite weaker headline financials, operational metrics improved (record RTMs up 3%, free cash flow up 44% to $900M). The company repurchased 6 million shares for $869M and maintained its outlook for flattish RTM growth with adjusted diluted EPS growth slightly exceeding volume.
Key Facts
- Revenue decreased 1% to $4,379 million from $4,403 million
- Operating income fell 4% to $1,549 million; adjusted operating income down 3%
- Net income down 1% to $1,146 million; adjusted net income down 5% to $1,102 million
- Diluted EPS rose 1% to $1.87 due to buybacks; adjusted diluted EPS fell 3% to $1.80
- Free cash flow surged 44% to $900 million
- Record first-quarter RTMs of 61,834 million, up 3%
- Operating ratio deteriorated to 64.6% from 63.4% (adjusted 64.2% vs 63.4%)
- Repurchased 6.0 million shares for $869 million in Q1
- Maintained guidance: flattish RTM growth, adjusted diluted EPS growth to slightly exceed volume, ~C$2.8 billion capital program
Financial Impact
Revenue declined $24M, net income declined $15M, free cash flow increased $274M
Risk Factors
- Heightened demand risk from volatile macroeconomic conditions, geopolitical conflicts, and global trade tensions
- Potential STB approval of UP-NS merger creating a powerful transcontinental competitor
- Higher incident costs and winter weather expenses pressuring margins
- Stronger Canadian dollar negatively impacting US dollar-denominated revenues
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 8 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 6-K Filing (Primary) | 0000016868-26-000026 |
| Document: a2026q1fsnotes.htm | 0000016868-26-000026 |
| Document: a2026q1pressreleasestatssu.htm | 0000016868-26-000026 |
| Document: a2026q16k.htm | 0000016868-26-000026 |
| Document: a2026q1ceocfocertificates.htm | 0000016868-26-000026 |
| Document: 0000016868-26-000026-index-headers.html | 0000016868-26-000026 |
| Document: 0000016868-26-000026-index.html | 0000016868-26-000026 |
| Document: 0000016868-26-000026.txt | 0000016868-26-000026 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 16, 2026 15d ago | Press Release | $119.49 $119.49 | · 0.00% | ▼ −2.56% | $117.16 (−1.95%) |
Aug 25, 2026 5w ago | 6-K | $127.12 $120.42 | ▼ −5.27% | ▼ −4.73% | $117.16 (−7.84%) |
Jul 24, 2026 10w ago | 6-K | $129.48 $127.13 | ▼ −1.81% | ▼ −2.19% | $117.16 (−9.51%) |
Jul 24, 2026 10w ago | Press Release | $129.48 $127.13 | ▼ −1.81% | ▼ −2.19% | $117.16 (−9.51%) |
Jul 22, 2026 10w ago | Press Release | $130.58 $127.13 | ▼ −2.64% | ▼ −3.12% | $117.16 (−10.28%) |
Jul 22, 2026 10w ago | Press Release | $130.58 $127.13 | ▼ −2.64% | ▼ −3.12% | $117.16 (−10.28%) |
Jul 3, 2026 12w ago | Press Release | $121.56 $124.34 | ▲ +2.29% | ▲ +1.36% | $117.16 (−3.62%) |
Jun 19, 2026 14w ago | Institutional Cluster | $114.13 $120.56 | ▲ +5.63% | ▲ +7.70% | $117.16 (+2.65%) |
Jun 5, 2026 16w ago | Press Release | $120.38 $118.98 | ▼ −1.16% | ▼ −1.73% | $117.16 (−2.67%) |
May 11, 2026 20w ago | Press Release | $110.60 $112.63 | ▲ +1.84% | ▲ +1.92% | $117.16 (+5.93%) |
US Market Status
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