CN Raises 2026 Guidance on Strong Q2 Results, Repurchases C$454M in Shares

summarizeSummary

CN reported Q2 2026 revenue of C$4.75 billion, up 11%, and raised full-year adjusted EPS growth guidance to mid-to-high single digits. The company repurchased C$454 million in shares and declared a C$0.9150 dividend.

check_boxKey Events · Earnings and Guidance · CNI

• Q2 Earnings Beat, Guidance Raised

  Revenue rose 11% to C$4,753M; adjusted diluted EPS of C$2.08 beat estimates by 11%. Full-year 2026 guidance raised to mid-to-high single-digit adjusted EPS growth, up from prior expectation of slightly exceeding RTM growth.

• Share Repurchases Accelerate

  CN repurchased 2.9M shares for C$454M in Q2, bringing H1 2026 total to 8.9M shares for C$1,323M. The current NCIB allows repurchase of up to 24M shares through February 2027.

• Dividend Increased

  Quarterly dividend of C$0.9150 per share declared, payable September 29, 2026, representing a 3% increase from the prior year.

• Moody's Outlook Revised to Negative

  Moody's changed its outlook to negative from stable, citing potential competitive risks from the proposed Union Pacific/Norfolk Southern merger, while affirming A2/P-1 ratings.

auto_awesomeAnalysis · CNI · Energy & Transportation

CN delivered a strong second quarter with revenue up 11% and adjusted EPS up 11%, driven by grain and energy volumes. Management raised full-year 2026 guidance to mid-to-high single-digit adjusted EPS growth, signaling confidence in sustained momentum. The company returned significant capital to shareholders, repurchasing C$454 million in shares during the quarter and declaring a C$0.9150 dividend. Moody's changed its outlook to negative, citing potential risks from the proposed Union Pacific/Norfolk Southern merger, though CN has secured a competitive access MOU contingent on regulatory approval. Trade uncertainty looms as the U.S. signaled it will not support USMCA renewal in its current form, a key risk for cross-border rail volumes.