Revenue grew 11.3% YoY in 2026Q2, with gross margin at 43.7% and operating margin at 37.5%, but SG&A rose to $297.1M, suggesting cost control challenges.
Canadian National Railway Company (CNI) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 17.78B | 17.29B | 17.05B | 16.83B | 17.11B | 14.48B | 13.82B | 14.92B | 14.32B | 13.04B | 12.04B | 12.61B | 12.13B | 10.57B | 9.92B | 9.03B | 8.3B | 7.37B | 8.48B | 7.9B | 7.93B | 7.24B | 6.55B | 5.88B | 6.11B | 5.65B | 5.43B | 5.24B | 4.09B | 4.33B | 3.96B |
| Revenue Growth % | 3.7% | 1.43% | 1.3% | -1.63% | 18.17% | 4.76% | -7.36% | 4.16% | 9.82% | 8.34% | -4.55% | 3.93% | 14.74% | 6.6% | 9.88% | 8.81% | 12.62% | -13.15% | 7.41% | -0.4% | 9.52% | 10.57% | 11.28% | -3.7% | 8.1% | 4.13% | 3.67% | 28.06% | -5.49% | 9.34% | 0.07% |
| Cost of Goods Sold | 9.88B | 9.53B | 10.08B | 9.68B | 9.71B | 8.41B | 8.05B | 8.83B | 8.36B | 7.37B | 6.64B | 6.95B | 7.14B | 6.41B | 5.9B | 5.46B | 4.91B | 2.13B | 2.8B | 2.32B | 1.93B | 1.74B | 1.27B | 1.35B | 2.97B | 1.07B | 1.2B | 836.69M | 932.32M | 1.14B | 1.19B |
| COGS % of Revenue | - | 55.13% | 59.13% | 57.51% | 56.77% | 58.08% | 58.24% | 59.21% | 58.37% | 56.48% | 55.18% | 55.12% | 58.86% | 60.59% | 59.45% | 60.43% | 59.12% | 28.93% | 33.03% | 29.35% | 24.35% | 24.01% | 19.43% | 23.02% | 48.61% | 18.87% | 22.19% | 15.98% | 22.8% | 26.35% | 30.05% |
| Gross Profit | 7.9B | 7.76B | 6.97B | 7.15B | 7.4B | 6.07B | 5.77B | 6.08B | 5.96B | 5.67B | 5.39B | 5.66B | 4.99B | 4.17B | 4.02B | 3.57B | 3.39B | 5.24B | 5.68B | 5.58B | 5.79B | 5.5B | 5.28B | 4.53B | 3.14B | 4.59B | 4.22B | 4.42B | 3.16B | 3.19B | 2.77B |
| Gross Margin % | 44.42% | 44.87% | 40.87% | 42.49% | 43.23% | 41.92% | 41.76% | 40.79% | 41.63% | 43.52% | 44.82% | 44.88% | 41.14% | 39.41% | 40.55% | 39.57% | 40.88% | 71.07% | 66.97% | 70.65% | 72.97% | 75.99% | 80.57% | 76.98% | 51.39% | 81.13% | 77.81% | 84.34% | 77.2% | 73.65% | 69.95% |
| Gross Profit Growth % | - | 11.35% | -2.57% | -3.31% | 21.87% | 5.16% | -5.16% | 2.06% | 5.06% | 5.19% | -4.68% | 13.38% | 19.77% | 3.6% | 12.63% | 5.31% | -35.22% | -7.82% | 1.81% | -3.57% | 5.16% | 4.29% | 16.47% | 44.26% | -31.53% | 8.58% | -4.36% | 39.9% | -0.94% | 15.12% | 15.56% |
| Operating Expenses | 1.22B | 1.18B | 720M | 554M | 556M | 453M | 994M | 171M | 167M | 117M | 83M | 394M | 368M | 295M | 338M | 276M | 368M | 2.83B | 2.79B | 2.7B | 4.9B | 4.62B | 4.38B | 4.11B | 4.64B | 3.97B | 3.78B | 3.77B | 1.72B | 1.89B | 1.84B |
| OpEx % of Revenue | - | 6.8% | 4.22% | 3.29% | 3.25% | 3.13% | 7.19% | 1.15% | 1.17% | 0.9% | 0.69% | 3.12% | 3.03% | 2.79% | 3.41% | 3.06% | 4.44% | 38.41% | 32.85% | 34.23% | 61.79% | 63.76% | 66.89% | 69.8% | 75.96% | 70.24% | 69.64% | 71.98% | 41.95% | 43.59% | 46.43% |
| Selling, General & Admin | 1.22B | 1.18B | 0 | -479M | -498M | -407M | -292M | -321M | -302M | -315M | -280M | 0 | 0 | 0 | 0 | 2.09B | 2.11B | 2.04B | 2.06B | 2.03B | 2.1B | 2.27B | 2.52B | 2.7B | 1.54B | 2.51B | 2.28B | 2.27B | 1.67B | 1.75B | 1.81B |
| SG&A % of Revenue | - | 6.8% | - | -2.85% | -2.91% | -2.81% | -2.11% | -2.15% | -2.11% | -2.42% | -2.33% | - | - | - | - | 23.13% | 25.45% | 27.69% | 24.3% | 25.66% | 26.49% | 31.33% | 38.54% | 45.92% | 25.24% | 44.4% | 42.06% | 43.43% | 40.87% | 40.56% | 45.83% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 0 | 0 | 720M | 1.03B | 1.05B | 860M | 1.29B | 492M | 469M | 432M | 363M | 394M | 368M | 295M | 338M | -1.81B | -1.74B | 790M | 725M | 677M | 2.8B | 2.35B | 1.86B | 1.4B | 3.1B | 1.46B | 1.5B | 1.49B | 44.05M | 131.08M | 23.99M |
| Operating Income | 6.67B | 6.58B | 6.25B | 6.6B | 6.84B | 5.62B | 4.78B | 5.59B | 5.49B | 5.24B | 5.03B | 5.27B | 4.62B | 3.87B | 3.69B | 3.3B | 3.02B | 2.41B | 2.89B | 2.88B | 3.03B | 2.62B | 2.17B | 1.78B | 1.47B | 1.68B | 1.65B | 1.47B | 1.44B | 1.3B | 930.4M |
| Operating Margin % | 37.53% | 38.07% | 36.65% | 39.2% | 39.98% | 38.79% | 34.57% | 37.49% | 38.36% | 40.2% | 41.8% | 41.76% | 38.11% | 36.62% | 37.15% | 36.51% | 36.45% | 32.66% | 34.12% | 36.42% | 38.21% | 36.24% | 33.11% | 30.2% | 24.04% | 29.76% | 30.36% | 28.02% | 35.25% | 30.06% | 23.51% |
| Operating Income Growth % | - | 5.36% | -5.31% | -3.55% | 21.79% | 17.56% | -14.59% | 1.82% | 4.77% | 4.19% | -4.44% | 13.88% | 19.39% | 5.1% | 11.8% | 8.99% | 25.69% | -16.86% | 0.63% | -5.08% | 15.47% | 21.03% | 22% | 20.97% | -12.66% | 2.06% | 12.34% | 1.79% | 10.83% | 39.76% | 12.91% |
| EBITDA | 8.6B | 8.52B | 8.14B | 8.41B | 8.57B | 7.21B | 6.37B | 7.16B | 6.82B | 6.52B | 6.26B | 6.42B | 5.67B | 4.85B | 4.61B | 4.18B | 3.86B | 3.2B | 3.62B | 3.55B | 3.68B | 3.25B | 2.77B | 2.34B | 2.06B | 2.22B | 2.18B | 1.96B | 1.12B | 1.1B | 735.35M |
| EBITDA Margin % | 48.38% | 49.27% | 47.75% | 50% | 50.09% | 49.83% | 46.07% | 47.97% | 47.64% | 50.03% | 51.98% | 50.94% | 46.76% | 45.89% | 46.46% | 46.3% | 46.5% | 43.38% | 42.67% | 45% | 46.45% | 44.94% | 42.3% | 39.72% | 33.72% | 39.28% | 40.18% | 37.49% | 27.51% | 25.38% | 18.59% |
| EBITDA Growth % | 3.16% | 4.66% | -3.27% | -1.81% | 18.78% | 13.32% | -11.03% | 4.88% | 4.57% | 4.27% | -2.6% | 13.22% | 16.92% | 5.29% | 10.26% | 8.35% | 20.71% | -11.69% | 1.83% | -3.5% | 13.18% | 17.47% | 18.53% | 13.45% | -7.21% | 1.79% | 11.11% | 74.52% | 2.43% | 49.34% | 24.64% |
| D&A (Non-Cash Add-back) | 1.93B | 1.94B | 1.89B | 1.82B | 1.73B | 1.6B | 1.59B | 1.56B | 1.33B | 1.28B | 1.23B | 1.16B | 1.05B | 980M | 924M | 884M | 834M | 790M | 725M | 678M | 653M | 630M | 602M | 560M | 591M | 538M | 533M | 496M | -316.4M | -202.2M | -195.04M |
| EBIT | 7.11B | 7.17B | 6.74B | 7.21B | 7.31B | 6.95B | 5.08B | 5.97B | 6.17B | 5.57B | 5.41B | 5.31B | 4.73B | 3.95B | 4B | 3.7B | 3.24B | 2.67B | 2.92B | 3.04B | 3.03B | 2.62B | 2.17B | 1.78B | 1.47B | 1.68B | 1.65B | 1.47B | 1.44B | 1.3B | 930.4M |
| Net Interest Income | -872.5M | -912.26M | -891M | -722M | -548M | -610M | -554M | -538M | -489M | -481M | -480M | -439M | -371M | -357M | -342M | -341M | -360M | -412M | -375M | -336M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 872.5M | 912.26M | 891M | 722M | 548M | 610M | 554M | 538M | 489M | 481M | 480M | 439M | 371M | 357M | 342M | 341M | 360M | 412M | 375M | 336M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -292.06M | -322.74M | -395M | -109M | -77M | 726M | -256M | -164M | 189M | -154M | -105M | -392M | -264M | -284M | -27M | 60M | -148M | -145M | -349M | -170M | -301M | -287M | -314M | -294M | -285M | -262M | -175M | -259M | -1.14B | -465.51M | -776.34M |
| Pretax Income | 6.38B | 6.26B | 5.85B | 6.49B | 6.76B | 6.34B | 4.52B | 5.43B | 5.68B | 5.09B | 4.93B | 4.87B | 4.36B | 3.59B | 3.66B | 3.36B | 2.88B | 2.26B | 2.54B | 2.71B | 2.73B | 2.34B | 1.85B | 1.48B | 1.18B | 1.42B | 1.47B | 1.21B | 296.44M | 834.86M | 154.06M |
| Pretax Margin % | 35.89% | 36.2% | 34.33% | 38.55% | 39.53% | 43.81% | 32.72% | 36.39% | 39.68% | 39.02% | 40.93% | 38.65% | 35.93% | 33.94% | 36.88% | 37.17% | 34.66% | 30.69% | 30% | 34.27% | 34.42% | 32.28% | 28.31% | 25.2% | 19.38% | 25.12% | 27.14% | 23.07% | 7.25% | 19.3% | 3.89% |
| Income Tax | 1.6B | 1.54B | 1.4B | 863M | 1.65B | 1.44B | 976M | 1.21B | 1.35B | -395M | 1.29B | 1.34B | 1.19B | 977M | 978M | 899M | 772M | 407M | 650M | 548M | 642M | 781M | 596M | 517M | 384M | 380M | 536M | 462M | 73.73M | 365.34M | -694.1M |
| Effective Tax Rate % | 25.01% | 24.65% | 23.99% | 13.3% | 24.32% | 22.75% | 21.59% | 22.34% | 23.83% | -7.76% | 26.12% | 27.41% | 27.36% | 27.22% | 26.74% | 26.79% | 26.84% | 18% | 25.54% | 20.25% | 23.53% | 33.42% | 32.15% | 34.86% | 32.43% | 26.76% | 36.39% | 38.25% | 24.87% | 43.76% | -450.53% |
| Net Income | 4.78B | 4.72B | 4.45B | 5.63B | 5.12B | 4.9B | 3.54B | 4.22B | 4.33B | 5.48B | 3.64B | 3.54B | 3.17B | 2.61B | 2.68B | 2.46B | 2.1B | 1.85B | 1.9B | 2.16B | 2.09B | 1.56B | 1.26B | 1.01B | 800M | 1.04B | 937M | 751M | 264.18M | 1.04B | 846.1M |
| Net Margin % | 26.91% | 27.28% | 26.09% | 33.43% | 29.92% | 33.84% | 25.65% | 28.26% | 30.22% | 42.05% | 30.24% | 28.05% | 26.1% | 24.7% | 27.02% | 27.22% | 25.36% | 25.17% | 22.34% | 27.33% | 26.32% | 21.49% | 19.21% | 17.23% | 13.09% | 18.4% | 17.26% | 14.34% | 6.46% | 24.06% | 21.38% |
| Net Income Growth % | 4.83% | 6.03% | -20.92% | 9.91% | 4.47% | 38.19% | -15.92% | -2.59% | -21.08% | 50.66% | 2.88% | 11.71% | 21.25% | -2.54% | 9.08% | 16.78% | 13.48% | -2.16% | -12.19% | 3.4% | 34.13% | 23.69% | 24.06% | 26.75% | -23.08% | 10.99% | 24.77% | 184.27% | -74.62% | 23.04% | 177.98% |
| Net Income (Continuing) | 4.78B | 4.72B | 4.45B | 5.63B | 5.12B | 4.9B | 3.54B | 4.22B | 4.33B | 5.48B | 3.64B | 3.54B | 3.17B | 2.61B | 2.68B | 2.46B | 2.1B | 1.85B | 1.9B | 2.16B | 2.09B | 1.56B | 1.26B | 966M | 800M | 1.04B | 937M | 746M | 222.71M | 469.52M | 848.16M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 7.88 | 7.56 | 7.01 | 8.53 | 7.44 | 6.90 | 5.00 | 5.86 | 5.87 | 7.24 | 4.67 | 4.39 | 3.85 | 3.09 | 6.20 | 5.49 | 4.52 | 1.96 | 2.66 | 4.24 | 1.96 | 1.39 | 1.09 | 0.87 | 0.66 | 0.87 | 0.78 | 0.62 | 0.24 | 0.92 | 0.84 |
| EPS Growth % | 7.3% | 7.85% | -17.82% | 14.65% | 7.83% | 38% | -14.68% | -0.17% | -18.92% | 55.03% | 6.38% | 14.03% | 24.6% | -50.16% | 12.93% | 21.46% | 130.61% | -26.32% | -37.26% | 116.33% | 41.01% | 27.52% | 25.29% | 31.82% | -24.14% | 11.54% | 25.81% | 158.33% | -73.91% | 9.52% | 179.25% |
| EPS (Basic) | - | 7.57 | 7.02 | 8.53 | 10.02 | 8.81 | 5.01 | 5.85 | 5.89 | 7.28 | 4.69 | 4.42 | 3.86 | 3.10 | 6.23 | 5.53 | 4.56 | 1.98 | 2.00 | 4.29 | 1.99 | 1.41 | 1.10 | 0.89 | 0.68 | 0.90 | 0.80 | 0.64 | 0.24 | 0.92 | 0.84 |
| Diluted Shares Outstanding | 607.5M | 623.7M | 634.5M | 659.1M | 688.3M | 710.3M | 713M | 719.15M | 737.7M | 757.3M | 779.2M | 805.1M | 823.5M | 846.1M | 432.1M | 447.45M | 465.1M | 947M | 713.5M | 509.4M | 1.07B | 1.12B | 1.16B | 1.16B | 1.21B | 1.19B | 1.2B | 1.2B | 1.1B | 1.13B | 1.01B |
| Basic Shares Outstanding | 606.5M | 623.1M | 633.5M | 657.7M | 687.9M | 710M | 713.28M | 720.49M | 737.31M | 757.46M | 779.44M | 805.92M | 822.6M | 845.31M | 430.3M | 444.65M | 461.45M | 938.4M | 706M | 502.65M | 1.05B | 1.1B | 1.14B | 1.15B | 1.18B | 1.15B | 1.17B | 1.18B | 1.1B | 1.13B | 1.01B |
| Dividend Payout Ratio | - | 46.78% | 48.07% | 36.82% | 39.16% | 35.52% | 46.09% | 36.62% | 30.8% | 22.59% | 31.84% | 28.15% | 25.83% | 27.72% | 24.33% | 23.81% | 23.91% | 25.57% | 23.01% | 19.37% | 16.29% | 17.67% | 17.65% | 18.84% | 21.25% | 14.42% | 14.51% | 15.71% | 37.21% | 7.51% | 8.04% |
Quick answers to the most common questions about buying CNI stock.
For fiscal year 2025, Canadian National Railway Company (CNI) reported total revenue of $17.29B. This represents a 337.0% increase compared to $3.96B in 1996.
Canadian National Railway Company (CNI) is profitable, generating $4.72B in net income for the fiscal year ending 2025 with a net profit margin of 27.3%.
Canadian National Railway Company (CNI) reported an operating income of $6.58B, resulting in an operating profit margin of 38.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Canadian National Railway Company (CNI) generated $7.76B in gross profit for the year, representing a gross profit margin of 44.9%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Cost inflation and margin compression
Modest Growth Amid Soft Freight
Revenue grew 1.4% YoY on a TTM basis, with the latest quarter showing 11.3% growth, but this appears driven by pricing and mix rather than volume acceleration. According to recent financial statements, CNI's revenue trajectory remains stable but unspectacular.
The 11.3% YoY revenue growth in 2026Q2 stands out against the prior quarter's -0.3% decline, suggesting a rebound in demand or pricing power. However, the TTM growth of 1.4% indicates that this is not a sustained acceleration, and the company may be benefiting from favorable commodity prices or fuel surcharges rather than broad-based volume gains. Investors should monitor whether this momentum can persist given the soft freight environment.
Gross Margin Resilience at 43.7%
Gross margin expanded to 43.7% in 2026Q2, up from 42.8% in the prior quarter, reflecting improved pricing or cost pass-through. As reported in financial statements, CNI's gross margin remains below peers like UNP (59.4%) but above CSX (33.2%), indicating a competitive position.
The sequential improvement in gross margin suggests that CNI is effectively managing its cost structure, possibly through fuel surcharges or better network efficiency. However, the gap to UNP's 59.4% gross margin highlights structural differences in cost base or revenue mix. With operating expenses flagged as elevated, sustaining this margin level may require continued pricing discipline.
Operating Leverage Fading
Operating margin improved to 37.5% in 2026Q2 from 35.4% in Q1, but SG&A expenses rose to $297.1M from $326.8M, indicating that cost control is becoming harder. Based on reported figures, CNI's operating leverage appears to be weakening as revenue growth slows.
The increase in SG&A in absolute terms, despite a slight revenue uptick, suggests that overhead costs are not scaling down with softer volumes. The operating margin of 37.5% is still healthy, but the trend in SG&A warrants attention. If revenue growth remains modest, CNI may struggle to maintain its operating margin without further cost cuts.
Stable Net Income Quality
Net margin held at 26.3% in 2026Q2, with EPS of $2.06, up 10.2% YoY, and no stock-based compensation reported. According to recent SEC filings, CNI's earnings quality appears solid, with no non-operating items distorting the bottom line.
The absence of SBC in the data suggests that reported earnings are not being diluted by stock-based compensation, which is a positive for earnings quality. The consistent net margin around 26-28% over the past year indicates that CNI is converting revenue to profit efficiently. However, the lack of guidance in the latest earnings event may signal uncertainty about future earnings sustainability.
Cost Pressures Persist
COGS as a percentage of revenue declined to 56.3% in 2026Q2 from 57.2% in Q1, but operating expenses remain elevated, as flagged in the AI risk overview. Based on reported figures, CNI's cost structure is under pressure, with labor and fuel costs likely driving the trend.
The slight improvement in COGS ratio suggests some relief in input costs, but the overall cost environment remains challenging. The high fixed-cost nature of rail operations means that any volume shortfall can quickly erode margins. Management's ability to control costs through PSR principles will be critical to maintaining the 38.1% operating margin.
Margin Compression Risks
Despite a 38.1% operating margin, CNI faces risks from rising operating expenses and potential regulatory caps on grain rates. As reported in financial statements, the low current ratio and elevated costs could pressure margins if pricing power wanes.
Short-sellers might argue that CNI's operating margin is at risk from cost inflation, particularly in labor and fuel, which may not be fully offset by pricing. The recent skip of formal guidance could indicate management's caution on near-term profitability. Additionally, the potential for increased regulatory oversight on freight rates could limit CNI's ability to pass through costs, squeezing margins further.