The quarter in one sentence
CN's September quarter paired a double digit sales lift with faster profit growth per share, as revenue reached C$4.8 billion and adjusted diluted EPS came in at C$2.16, up 15% and 18% from a year ago. That top line cleared the Bloomberg-polled consensus by more than C$100 million, and the stock briefly rallied 2.9% - the most since Aug. 13 - before easing.
Where the money came from
Autos was the standout, with revenue up 29% on stronger imports into Canada and market share gains, though flat production capped the benefit. Revenue from grain and fertilizers increased 18%, metals and minerals advanced 16%, petroleum and chemicals likewise gained 16%, and forest products were higher by 8%.
CN and Canadian Pacific Kansas City move a large share of Canada's output across North America, making rail a useful read on activity. A Bloomberg chart titled Canada's Railway Stocks Regain Some Momentum tracks five year performance for the group. CPKC's latest quarter also showed broad gains: grain up 27%, metals, minerals and consumer products up 13%, forest products up 7%, and automotive up 5%.
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Tariffs, growth and management response
Since 2025, the US administration has imposed sector specific duties on Canada - 50% on aluminum and steel and 25% on autos - and in August extended 50% tariffs to a wide range of Canadian consumer products. Those measures have hit industries unevenly, and CN says there have been changes in sectors disproportionately affected, specifically "around the kinds of markets that they are shipping into."
Canada's real GDP slowed between July and September to a 1.3% annualized pace after a particularly strong second quarter. Against that backdrop, CEO Tracy Robinson told analysts, "It's been a journey, hasn't it? And I don't think that journey is over," adding that the company is getting better at responding to external shifts and focusing on what it can control. She also flagged a key variable on trade talks: "And the question is, if we get a resolution, how much of that continues, or do we revert back to the US?"
Policy tailwinds and positioning
Prime Minister Mark Carney has been pressing to draw more investment to Canada, streamline regulation, and increase oil and gas shipments to destinations outside the US. Robinson said CN, the largest Canadian railway by revenue, is "uniquely positioned to both help that and benefit" from the "renewed focus in Canada to create the conditions under which industry and natural resources growth takes place." CPKC is also constructive on the near term, with Chief Marketing Officer John Brooks noting, "We've got some headaches that are out there, but we're going to push it hard," and, "I'm optimistic that we can close pretty strong."
Why it matters for your portfolio
Freight is being rerouted by tariffs and policy changes, yet CN still printed double digit gains in both revenue and EPS, with its main rival reporting strength in similar categories. The bottom line: rail demand across key commodities remains durable even as Canada's growth cools and trade patterns shift, so execution and exposure by end market will likely separate winners in rail stocks.
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