Canadian National Railway Reports Strong Q4 Earnings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy CNI?
Source: seekingalpha
Canadian National Railway's stock fell 4.60% and hit a 20-day low amid broader market declines, with the Nasdaq-100 down 1.37% and the S&P 500 down 0.79%.
The company reported a non-GAAP EPS of C$2.08 for Q4, with revenue reaching C$4.46 billion, reflecting a 2.3% year-over-year growth. This performance underscores the company's enhanced profitability amid stable transportation demand. Additionally, the operating ratio improved to 61.2%, indicating significant progress in cost control and operational efficiency. The company also plans to invest approximately C$2.8 billion in its capital program in 2026, reflecting confidence in future development.
Despite the stock's decline, the strong earnings report may bolster investor confidence in the long term, as the company continues to demonstrate operational improvements and a commitment to shareholder returns.
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Analyst Views on CNI
Wall Street analysts forecast CNI stock price to rise
15 Analyst Rating
9 Buy
6 Hold
0 Sell
Moderate Buy
Current: 106.420
Low
105.00
Averages
113.56
High
136.77
Current: 106.420
Low
105.00
Averages
113.56
High
136.77
About CNI
Canadian National Railway Company is a transportation and logistics company. The Company's services include rail, intermodal, trucking, and supply chain services. The Company’s rail services offer equipment, customs brokerage services, transloading and distribution, private car storage and others. Its intermodal container services help shippers expand their door-to-door market reach with about 23 strategically placed intermodal terminals. Its intermodal services include temperature-controlled cargo, port partnerships, logistics park, custom brokerage, transloading and distribution, and others. Its trucking services include door-to-door service, import and export dray, interline services, and specialized services. Its supply chain services offer comprehensive services across a range of industries and product types. The Company transports more than 300 million tons of natural resources, manufactured products, and finished goods throughout North America every year.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analysis of Bill Gates Foundation's Investment Portfolio
- Portfolio Overview: The Gates Foundation's investment portfolio exceeds $38 billion, primarily concentrated in three stocks: Berkshire Hathaway (26%), WM (19%), and Canadian National Railway (15%), reflecting Gates' personal investment style of high concentration.
- Berkshire Hathaway Contribution: This year, the foundation received a donation of 9.4 million Class B shares from Warren Buffett, and despite a decline in stock price following Buffett's retirement, the core insurance business remains robust, expected to continue providing stable funding for the foundation.
- WM Growth Potential: WM's acquisition of Stericycle in 2024, rebranded as WM Healthcare Solutions, has led to record operating margins, and although the new segment operates at a lower margin, further margin expansion is anticipated through price increases and operational efficiencies.
- Canadian National Railway's Market Position: Despite increased competition, Canadian National Railway's stock rose 2% over the past year, with its extensive rail network and operational efficiency maintaining its competitive edge, and management expects to drive free cash flow growth through reduced capital expenditures and improved operations.
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- Action Plan Progress: In 2025, CN completed 20 out of 24 scheduled actions under its Indigenous Reconciliation Action Plan, demonstrating the company's ongoing commitment to reconciliation, although two actions were rescheduled due to economic conditions, highlighting adaptability and accountability.
- Community Engagement: CN held over 500 meetings and consultations with Indigenous partners and participated in more than 240 Indigenous community events, showcasing its proactive efforts to build and deepen relationships with Indigenous communities, aimed at fostering sustainable social change.
- Safety Training: The company delivered over 15 in-person rail safety and emergency response training sessions, aimed at enhancing safety awareness and emergency preparedness within Indigenous communities, thereby improving overall community safety levels.
- Sponsorship Support: CN supported over 170 Indigenous communities and organizations through various sponsorships and donations, reflecting the company's long-term commitment to advancing Indigenous community development and fostering stronger partnerships and social responsibility.
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- Live Webcast Arrangement: CN will provide a live webcast of the conference on its investor section of the website, ensuring that investors and the public can access real-time updates, thereby enhancing transparency and investor confidence.
- Reaffirming Company Mission: CN safely transports over 300 million tons of natural resources and manufactured goods annually, showcasing its critical role in the North American economy and emphasizing its contributions to sustainable trade since 1919.
- Rail Network Advantage: With nearly 20,000 miles of rail network, CN connects Canada's Eastern and Western coasts with the U.S. Midwest and Gulf Coast, further solidifying its competitive edge in the transportation industry.
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Price Increase Announcement: Canadian National Railway has raised its target price to $130 from $115.
Market Impact: This adjustment reflects the company's positive outlook and potential growth in the railway sector.
See More
Bill Gates' Philanthropic Investment Strategy
- Charitable Donation Scale: Bill Gates has donated the vast majority of his wealth to the Gates Foundation over the decades, planning to give away nearly all of his remaining wealth over the next 20 years, reflecting his strong commitment to philanthropy.
- Investment Concentration: Approximately 59% of the Gates Foundation's marketable equity portfolio is concentrated in three major stocks, with Berkshire Hathaway accounting for 28.5%, indicating a highly concentrated investment strategy favoring quality assets.
- Berkshire Hathaway Performance: As of the third quarter, the foundation holds 21.8 million shares of Berkshire Hathaway, valued at about $11 billion, and despite market fluctuations, the foundation plans to continue holding these quality assets.
- WM and Canadian National Railway: The Gates Foundation also holds stakes in WM and Canadian National Railway, representing 17% and 13.3% of its assets respectively, both companies possess strong market positions and stable profitability in their respective industries, showcasing Gates' focus on long-term investments.
See More
Analysis of Gates Foundation Investment Strategy
- Portfolio Concentration: The Gates Foundation's investment portfolio is heavily concentrated, with approximately 59% of marketable equities held in just three outstanding value stocks, reflecting Bill Gates' investment style influenced by Warren Buffett, which may yield stable returns in the future.
- Buffett's Annual Donations: Warren Buffett donates a significant number of shares to the Gates Foundation each year, with last year's contribution amounting to 9.4 million Class B shares, requiring the foundation to utilize the entire value of these donations plus 5% of its other assets annually, ensuring a continuous influx of funds for philanthropic efforts.
- WM's Market Advantage: The Gates Foundation holds 28.9 million shares of WM, valued at approximately $6.6 billion, benefiting from its dominant position with over 260 landfills, which provides a competitive edge in the slow-growing waste management industry, allowing for steady profit growth in the future.
- Growth Potential of Canadian National Railway: The foundation owns 51.8 million shares of Canadian National Railway, worth about $5.1 billion, and despite facing flat revenue challenges, the company is expected to enhance earnings per share through a share repurchase program and reduced capital expenditures, showcasing long-term investment potential.
See More
Analysis of Bill Gates Foundation's Investment Portfolio
- Portfolio Overview: The Gates Foundation's investment portfolio exceeds $38 billion, primarily concentrated in three stocks: Berkshire Hathaway (26%), WM (19%), and Canadian National Railway (15%), reflecting Gates' personal investment style of high concentration.
- Berkshire Hathaway Contribution: This year, the foundation received a donation of 9.4 million Class B shares from Warren Buffett, and despite a decline in stock price following Buffett's retirement, the core insurance business remains robust, expected to continue providing stable funding for the foundation.
- WM Growth Potential: WM's acquisition of Stericycle in 2024, rebranded as WM Healthcare Solutions, has led to record operating margins, and although the new segment operates at a lower margin, further margin expansion is anticipated through price increases and operational efficiencies.
- Canadian National Railway's Market Position: Despite increased competition, Canadian National Railway's stock rose 2% over the past year, with its extensive rail network and operational efficiency maintaining its competitive edge, and management expects to drive free cash flow growth through reduced capital expenditures and improved operations.
See More
CN Releases Annual Report on Indigenous Reconciliation Action Plan
- Action Plan Progress: In 2025, CN completed 20 out of 24 scheduled actions under its Indigenous Reconciliation Action Plan, demonstrating the company's ongoing commitment to reconciliation, although two actions were rescheduled due to economic conditions, highlighting adaptability and accountability.
- Community Engagement: CN held over 500 meetings and consultations with Indigenous partners and participated in more than 240 Indigenous community events, showcasing its proactive efforts to build and deepen relationships with Indigenous communities, aimed at fostering sustainable social change.
- Safety Training: The company delivered over 15 in-person rail safety and emergency response training sessions, aimed at enhancing safety awareness and emergency preparedness within Indigenous communities, thereby improving overall community safety levels.
- Sponsorship Support: CN supported over 170 Indigenous communities and organizations through various sponsorships and donations, reflecting the company's long-term commitment to advancing Indigenous community development and fostering stronger partnerships and social responsibility.
See More
CN Executives to Address J.P. Morgan Industrials Conference
- Executive Participation: CN's CFO Ghislain Houle and COO Patrick Whitehead will speak at the J.P. Morgan Industrials Conference on March 17, 2026, at 7:30 AM ET, highlighting the company's leadership in the industry.
- Live Webcast Arrangement: CN will provide a live webcast of the conference on its investor section of the website, ensuring that investors and the public can access real-time updates, thereby enhancing transparency and investor confidence.
- Reaffirming Company Mission: CN safely transports over 300 million tons of natural resources and manufactured goods annually, showcasing its critical role in the North American economy and emphasizing its contributions to sustainable trade since 1919.
- Rail Network Advantage: With nearly 20,000 miles of rail network, CN connects Canada's Eastern and Western coasts with the U.S. Midwest and Gulf Coast, further solidifying its competitive edge in the transportation industry.
See More
Canadian National Railway Co: Jefferies Increases Price Target to $130 from $115
Price Increase Announcement: Canadian National Railway has raised its target price to $130 from $115.
Market Impact: This adjustment reflects the company's positive outlook and potential growth in the railway sector.
See More
Bill Gates' Philanthropic Investment Strategy
- Charitable Donation Scale: Bill Gates has donated the vast majority of his wealth to the Gates Foundation over the decades, planning to give away nearly all of his remaining wealth over the next 20 years, reflecting his strong commitment to philanthropy.
- Investment Concentration: Approximately 59% of the Gates Foundation's marketable equity portfolio is concentrated in three major stocks, with Berkshire Hathaway accounting for 28.5%, indicating a highly concentrated investment strategy favoring quality assets.
- Berkshire Hathaway Performance: As of the third quarter, the foundation holds 21.8 million shares of Berkshire Hathaway, valued at about $11 billion, and despite market fluctuations, the foundation plans to continue holding these quality assets.
- WM and Canadian National Railway: The Gates Foundation also holds stakes in WM and Canadian National Railway, representing 17% and 13.3% of its assets respectively, both companies possess strong market positions and stable profitability in their respective industries, showcasing Gates' focus on long-term investments.
See More
Analysis of Gates Foundation Investment Strategy
- Portfolio Concentration: The Gates Foundation's investment portfolio is heavily concentrated, with approximately 59% of marketable equities held in just three outstanding value stocks, reflecting Bill Gates' investment style influenced by Warren Buffett, which may yield stable returns in the future.
- Buffett's Annual Donations: Warren Buffett donates a significant number of shares to the Gates Foundation each year, with last year's contribution amounting to 9.4 million Class B shares, requiring the foundation to utilize the entire value of these donations plus 5% of its other assets annually, ensuring a continuous influx of funds for philanthropic efforts.
- WM's Market Advantage: The Gates Foundation holds 28.9 million shares of WM, valued at approximately $6.6 billion, benefiting from its dominant position with over 260 landfills, which provides a competitive edge in the slow-growing waste management industry, allowing for steady profit growth in the future.
- Growth Potential of Canadian National Railway: The foundation owns 51.8 million shares of Canadian National Railway, worth about $5.1 billion, and despite facing flat revenue challenges, the company is expected to enhance earnings per share through a share repurchase program and reduced capital expenditures, showcasing long-term investment potential.
See More
