Canadian National Railway CNI 2025Q2 Earnings Preview Upside Ahead on Projected Year-Over-Year Earnings Growth Despite Lower Revenues

Forward-Looking Analysis
Canadian National Railway (CNI) is expected to report a year-over-year increase in earnings for 2025Q2, despite lower revenues. Analysts forecast full-year earnings of $8.26 per share, with Raymond James Financial anticipating a Q4 2025 earnings of $1.57 EPS and FY2026 earnings at $6.39 EPS. RBC Capital Markets highlighted potential challenges from possible U.S. tariffs but noted optimism in earnings growth. CEO Tracy Robinson projects adjusted diluted EPS growth of 10 to 15 percent for 2025, with intentions to invest $3.4 billion in capital projects. The company remains committed to achieving high single-digit annual growth through 2026, maintaining its financial outlook despite rising economic risks.

Historical Performance Review
In 2025Q1, Canadian National Railway posted revenue of $4.40 billion and net income of $1.16 billion, resulting in earnings per share of $1.85. This performance exceeded the Zacks Consensus Estimate of $1.26 EPS. The gross profit for the quarter matched the revenue at $4.40 billion, indicating a solid start to the year.

Additional News
Canadian National Railway has maintained its growth outlook for 2025 despite rising economic uncertainties, including potential U.S. tariff threats. CEO Tracy Robinson expressed confidence in navigating supply chain challenges, aiming to invest $3.4 billion in capital projects to drive growth. Raymond James Financial adjusted its earnings forecast for the company, expecting $5.66 per share for FY2025, up from $5.58. RBC Capital Markets released survey results showing expectations of earnings growth across Canadian rail companies. The company plans to maintain high single-digit annual growth through 2026.

Summary & Outlook
Canadian National Railway shows strong financial health, with projected earnings growth amid lower revenues. The company’s commitment to investing $3.4 billion in capital projects signals optimism and strategic planning to tackle potential risks like U.S. tariffs. The outlook remains bullish, supported by robust EPS forecasts and the management's confidence in overcoming supply chain challenges. Canadian National’s strategy to achieve high single-digit annual growth through 2026 further underlines its resilience and potential for long-term profitability.