CN Zooms Ahead: Canadian National Railway Delivers Strong Q2 Results
Canadian National Railway (CN) has once again demonstrated its strength and resilience, delivering impressive financial results for the second quarter of 2026. According to the company's recent conference call transcript, CN's President and CEO, Tracy Robinson, was pleased to report a 12% increase in earnings per share (EPS), on a foreign exchange-adjusted basis, as well as a 5% rise in volume growth.
"We're staying focused on what we control," said Robinson, "and this is driving results. We're running the railroad well, using service to convert customer growth opportunities, driving cost and capital discipline, continuing to position CN for growth."
One of the key highlights from the quarter was the company's ability to maintain its momentum in productivity improvements. CN delivered record fuel efficiency in the first half of the year, while also seeing gains in labor and locomotive productivity.
In addition to these operational successes, CN has been actively working on strengthening its commercial presence across its franchise. The company's teams have been focused on winning business and converting opportunities into growth, leading to benefits in areas such as metals moving within Canada, energy-related traffic, and domestic intermodal services.
"It's all about speed and agility," said Robinson. "Simply put, when strong service, disciplined operations, commercial intensity come together, results follow."
Another significant development from the quarter was CN's announcement of two agreements with Union Pacific (UP) that will provide the company with direct and competitively priced access to important markets in Kansas City and Mexico.
The first agreement grants CN new rights for volumes between Canada and Mexico via Memphis, extending its length of haul from Chicago to Memphis and densifying its southern network. In exchange for these rights, CN has granted UP additional capacity over the EJ&E for U.S. traffic.
The second agreement is contingent on the Surface Transportation Board's (STB) approval and closing of the merger with UP, but it will secure competitive access into Kansas City and the use of UP's NEF yards. This positions CN to compete on new business in an important rail market and provides opportunities for increased traffic currently moving in this corridor.
CN has raised its guidance for the year, expecting earnings growth of mid-to-high single digits on low single-digit volumes. With these developments, it is clear that Canadian National Railway continues to be a leader in the industry, driven by its focus on what it controls and its commitment to delivering strong results."
