Canadian National Railway: 3 Key Takeaways for Long-Term Investors

CNI posted 18% year-over-year growth in adjusted diluted earnings per share in Q3 2026, a result that signals freight volume gains are now flowing through to profit.

The driver, per the source, is operational efficiency. CNI reported 7% employee productivity gains, which let the railroad convert higher volumes into earnings expansion rather than absorbing them through added cost. That gap between volume growth and profit growth is the core of the operating leverage story.

Capital spending is the second leg. CNI has completed major capital investments, and spending is now normalizing. Interpretation: lower capital intensity against rising earnings points toward stronger free cash flow, a conclusion the source itself draws as it describes CNI as positioned for free cash flow growth.

Reach is the third piece. Strategic partnerships extend CNI's network into Mexico, widening the freight base the railroad can serve. The source frames this as supporting continued volume growth, though it provides no revenue figures for the partnerships.

For context, UNP sits in the same peer group, making CNI's 18% EPS growth a natural benchmark for how efficiently each railroad turns volume into profit. The source offers no UNP figures, so any direct comparison is the reader's to build.