Shares of Canadian National Railway Co. (TSX:CNR) rose on Friday, October 30, after the railway reported stronger third-quarter Earnings and said its full-year profit growth is tracking toward the upper end of its outlook.

The gain stood out on a day when the S&P/TSX Composite index suffered its steepest one-day drop since June. CN was one of the companies that beat expectations and rose.

What happened

CN released its results for the quarter ended September 30 before markets opened on Friday and held a conference call at 8:30 a.m. Eastern. Revenue rose to C$4.77 billion, up C$606 million from C$4.17 billion a year earlier.

Adjusted Diluted Earnings per Share climbed to C$2.16 from the year-earlier level, a jump of nearly a fifth. On a reported basis, diluted earnings per share were C$2.00, compared with C$1.83.

Reported results included a C$118-million Impairment tied to discontinued IT software and C$14 million in advisory costs related to rail Merger matters. CN excluded both from its adjusted figures.

Adjusted Operating Income rose to C$1.86 billion. Net Income came in at C$1.21 billion.

The stock was up modestly during Friday's session after the company delivered strong results.

Why it matters

The headline for investors was the outlook. CN said adjusted diluted earnings per share growth for 2026 should land in the mid-to-high single digits and is now tracking toward the upper end of that range.

Volumes held up, too. Revenue ton miles and gross ton miles each rose during the quarter, and the company set a third-quarter record for fuel efficiency. Some speed measures slipped, with car velocity and network train speed both a little slower than a year ago.

Free Cash Flow for the first nine months of 2026 reached C$2.92 billion, up about a quarter from the prior year. CN also bought back about 3.9 million shares in the quarter for C$676 million.

CN declared a fourth-quarter Dividend of C$0.915 per share, payable December 30 to shareholders of record on December 9.

The bigger picture

Friday was a rough session for Canadian stocks. The S&P/TSX Composite fell about 629 points to close at 35,620.03. Decliners beat advancers 661 to 339.

Gold miners and technology stocks led the slide. Gold fell to a one-year low, and chip stocks sank after weak results from Intel and Amazon.

Not every transport name fared well. Trucking company TFI International fell sharply after its own quarterly results missed expectations.

CN's outlook also flagged risk. It assumes WTI crude between US$80 and US$110 a barrel and warned of heightened Demand risk from economic, geopolitical and trade uncertainty. Oil settled above US$100 on Friday, near the upper part of that range.

What to watch next

Investors will watch whether CN can keep volumes growing as trade tensions and tariffs weigh on some shippers. The company still expects low single-digit growth in revenue ton miles this year.

Capital spending is another focus. CN plans to invest about C$2.8 billion in 2026, net of customer reimbursements.

Interest rates matter as well. The Bank of Canada raised its Key Rate on Wednesday, October 28, for the first time in about three years, and higher rates could slow parts of the economy that move freight by rail.

For now, Friday's move shows that a solid quarter and a firmer outlook can still win buyers, even on a day when most of the market headed lower.