Analysts Are Updating Their Canadian National Railway Company (TSE:CNR) Estimates After Its Third-Quarter Results

The quarterly results for Canadian National Railway Company (TSE:CNR) were released last week, making it a good time to revisit its performance. Canadian National Railway reported CA$4.2b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of CA$1.83 beat expectations, being 3.2% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early.

Following the latest results, Canadian National Railway's 27 analysts are now forecasting revenues of CA$17.9b in 2026. This would be an okay 4.3% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to rise 8.4% to CA$8.14. In the lead-up to this report, the analysts had been modelling revenues of CA$18.0b and earnings per share (EPS) of CA$8.11 in 2026. The consensus analysts don't seem to have seen anything in these results that would have changed their view on the business, given there's been no major change to their estimates.

Check out our latest analysis for Canadian National Railway

There were no changes to revenue or earnings estimates or the price target of CA$152, suggesting that the company has met expectations in its recent result. The consensus price target is just an average of individual analyst targets, so - it could be handy to see how wide the range of underlying estimates is. The most optimistic Canadian National Railway analyst has a price target of CA$180 per share, while the most pessimistic values it at CA$135. With such a narrow range of valuations, the analysts apparently share similar views on what they think the business is worth.

Taking a look at the bigger picture now, one of the ways we can understand these forecasts is to see how they compare to both past performance and industry growth estimates. We would highlight that Canadian National Railway's revenue growth is expected to slow, with the forecast 3.4% annualised growth rate until the end of 2026 being well below the historical 5.0% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.6% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than Canadian National Railway.

The Bottom Line

The most obvious conclusion is that there's been no major change in the business' prospects in recent times, with the analysts holding their earnings forecasts steady, in line with previous estimates. On the plus side, there were no major changes to revenue estimates; although forecasts imply they will perform worse than the wider industry. The consensus price target held steady at CA$152, with the latest estimates not enough to have an impact on their price targets.

With that said, the long-term trajectory of the company's earnings is a lot more important than next year. We have forecasts for Canadian National Railway going out to 2027, and you can see them free on our platform here.

Before you take the next step you should know about the 1 warning sign for Canadian National Railway that we have uncovered.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.