Win-Win

Research evidence excerpt

Win-Win

Transportation | Surface Transportation

July 24, 2026

Canadian National Railway Company Jonathan Chappell, CFA Alex Johnson 212-497-0827 212-497-0810

CNI | $130.58 jonathan.chappell@evercoreisi.com alex.johnson@evercoreisi.com

Outperform | Target Price/Base Case: $139.00 (from Krystal Song

$124.00) 212-497-0822

Change in Earnings Forecast - Change in Price krystal.song@evercoreisi.com

Target

Company Statistics Win-Win

Market Capitalization (M) $78,173 CNI posted adjusted 2Q26 EPS of C$2.08, exceeding our forecast of

Shares Outstanding (M) 713 C$2.00 and the average Street estimate of C$1.96. The contributions

Debt/Total Capital 39.6% to the EPS upside were broad-based, with volume, yield, revenue, and

Dividend/Distribution Yield 1.8% EBIT all beating expectations (see our First Look for all quarterly details

Enterprise Value (M) $89,675 here). In addition, CNI raised its full-year 2026 volume (RTM growth of

52-Week Range $90.74 - $131.21

low-single-digits, from “flattish”) and EPS (mid-to-high single-digit Fiscal Year End Dec

growth, from “slightly exceeding volume growth”) guidance ranges, with

better line of sight on both sustainable volume strength and productivity

improvements. Finally, management provided more detail and context

Earnings Summary

around the recently announced operational agreements with UNP,

2025 2026E 2027E including the opportunity potential of new market access and how

EPS Q1 $1.85 $1.80A $1.99 certain arrangements may work going forward (see second bullet

Q2 $1.87 $2.08A $2.28 below). All told, we are raising our full-year 2026 and 2027 EPS

Q3 $1.83 $2.12 $2.31 estimates to C$8.11 (from C$7.90) and to C$8.97 (from C$8.82),

Q4 $2.08 $2.11 $2.39

FY $7.63 $8.11 $8.97 respectively, with our price target moving up to US$139 (from US$124).