CN Rail's 2Q Beat Seen Supporting Higher 2026 EPS Outlook -- Market Talk

0941 ET - CN Rail delivered a 2Q beat, raising its 2026 outlook, helped by stronger volumes, better yields in key segments and cost controls, according to Citi in a report. The analysts note that adjusted EPS rose 11% to C$2.08, ahead of estimates, and CN Rail lifted its 2026 EPS growth target to mid- to high-single digits on low-single-digit revenue ton-mile growth. Revenue and operating ratio came in better than expected, helped by lower fuel and casualty costs. He says CN Rail "has been benefiting from higher-than-expected volumes driven by Grain, NGLs [natural gas liquids] and refined petroleum products within PetroChems, and Autos." With shares up more than 30% in 2026, the results and outlook should support continued momentum, the analysts say. (adriano.marchese@wsj.com)

(END) Dow Jones Newswires

July 24, 2026 09:41 ET (13:41 GMT)