Canadian National Railway (CN) raised its 2026 earnings guidance after second-quarter volume growth exceeded expectations, with key operating metrics steady and capacity investments in Western Canada paying off for shippers on the network.
CN previously forecast flat volumes and low single-digit earnings growth for the year, according to CEO Tracy Robinson. But after a strong first half, the railway now expects “mid to high single-digit” earnings growth on “low single-digit” volume gains, Robinson told analysts on the July 24 earnings call. “The engine is running well,” she said.
Second-quarter financials and volume performance
For the quarter ended June 30, CN posted:
| Metric | Q2 2026 | Change |
|---|---|---|
| Operating income | US$1.26 billion | +9% |
| Revenue | US$3.37 billion | +11% |
| Adjusted EPS | US$1.48 | +11% |
| Operating ratio | 62.5% | +0.8 points |
Fuel prices were a 2.1-point drag on the operating ratio, CN said.
Volume was up 5% when measured by revenue ton miles (CN’s preferred metric), but down 0.35% on the basis of carloads and intermodal containers, reflecting longer hauls and heavier loads.
Commodity outlook by lane
Chief Commercial Officer Janet Drysdale said CN has a positive outlook for the remainder of the year for:
- Petroleum and chemicals traffic
- Grain
- Domestic intermodal
- Automotive
The outlook is neutral for metals and minerals, and coal. CN has a negative outlook on:
- Forest products
- Fertilizer
- International intermodal
Network performance and capacity gains
Chief Operating Officer Patrick Whitehead said key operating metrics held steady year over year. “Car velocity and network train speed were largely flat year over year while handling stronger volumes and maintaining solid customer service,” he said.
CN posted its best second-quarter and first-half fuel efficiency figures. Locomotive productivity increased 6%, and train and engine crew productivity rose 13% as the railway ran longer trains.
Capacity expansion projects in Western Canada are improving network fluidity. “Car velocity, train speed, and dwell improved roughly 3%” in the Western Region, Whitehead said. “That combination matters. It demonstrates that the capacity investments we have made, disciplined train planning, and strong execution are allowing us to absorb growth while improving overall fluidity.”
CN is handling record grain and potash shipments, along with higher volumes of refined petroleum products, natural gas liquids, and other commodities in the region.
Wildfire monitoring
Wildfires currently burning in northern Ontario and British Columbia are not affecting CN’s operations or infrastructure, the carrier said. CN is closely monitoring the fires and has deployed its fleet of firefighting trains.
Shipper implications
The improved outlook and steady operating metrics suggest that CN has capacity to handle incremental volume without degrading service. Shippers of petroleum, grain, and automotive products should expect consistent service levels, while those moving international intermodal or forest products may face tighter capacity. CN’s continued investment in Western Canada benefits exporters of potash and grain, as well as domestic intermodal users.
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