CN raised its 2026 outlook after second-quarter revenue climbed 11% to C$4.753 billion, supported by higher freight volumes led by grain and energy products across its network.

CN locomotives hauling a freight train through the Alberta mountains between Hinton and Jasper
A CN freight train between Hinton and Jasper, Alberta. Illustrative image; it does not depict the results announcement. Cropped to 16:9. Photo: David Gubler / Wikimedia Commons / CC BY-SA 4.0.

Higher freight volumes lift quarterly earnings

CN reported the results for the quarter ended June 30, 2026, in its official second-quarter release⁠ dated July 24.

Revenue increased by C$481 million from the same quarter of 2025. Operating income rose 9% to C$1.781 billion, while adjusted operating income advanced 10% to C$1.798 billion.

Net income reached C$1.249 billion, up 7%, and adjusted net income increased 8% to C$1.261 billion. Diluted earnings per share rose 10% to C$2.06. Adjusted diluted EPS increased 11% to C$2.08, or 12% to C$2.09 at constant currency.

The operating ratio increased by 80 basis points to 62.5%, while the adjusted operating ratio rose by 50 basis points to 62.2%.

CN records mixed operating performance

Revenue ton miles, which combine freight weight with the distance transported, increased 5% to 62.250 billion. Gross ton miles rose 3% to 121.082 billion, with overall volume growth driven primarily by grain and energy products.

Average train length increased 1% to 8,084 feet, and through network train speed improved 1% to 19.1 mph. However, through dwell rose 4% to 7.1 hours, while car velocity declined 1% to 211 car miles per day.

Fuel efficiency improved 3% to 0.836 US gallons of locomotive fuel per 1,000 GTMs. GTMs per average employee increased 9% to 5.105 million, while the average workforce declined from 25,003 to 23,719.

CN’s unaudited safety indicators moved in the opposite direction. The injury frequency rate increased from 0.83 to 1.01 per 200,000 person-hours, while the accident rate rose from 1.56 to 2.30 per million train miles. The indicators follow Federal Railroad Administration reporting criteria.

CN’s 2026 financial-results page⁠ provides the complete quarterly review and supporting non-GAAP materials.

Don’t miss…VTG to Close Großräschen Intermodal Workshop in 2026

Revised outlook retains C$2.8 billion capital plan

CN now assumes low single-digit RTM growth in 2026, replacing its January 30 assumption of flattish growth. The railway expects adjusted diluted EPS growth in the mid-to-high single-digit range.

First-half free cash flow, which CN reports as a non-GAAP measure, increased 19% to C$1.842 billion. The company also repurchased approximately 2.9 million shares for C$454 million during the quarter.

CN continues to plan approximately C$2.8 billion of capital investment in 2026, net of customer reimbursements. A quarterly dividend of C$0.9150 per share is due on September 29 to shareholders of record on September 8.

News on railway transport, industry, and railway technologies from Railway Supply that you might have missed:

Don’t miss…Ireland Plans Over €1 Billion FourNorth Railway Expansion