Canadian National Railway stock gains on Amtrak pact and steady earnings outlook

Canadian National Railway Company stock (ISIN CA1363751027) is trading close to its recent high levels as of mid September 2026, supported by a strengthened earnings outlook and fresh operating agreements that underline the railway’s long-term growth plans.

Eight-year Amtrak pact supports network value

According to Simply Wall St on September 18, 2026, Canadian National Railway (CN) and Amtrak agreed an eight-year operating pact covering passenger services on CN owned rail lines in the United States, ending a dispute that had lasted for roughly a decade.

This new operating agreement provides clearer terms for Amtrak services over CN track, which should reduce operational friction and legal uncertainty for both parties in the coming years, an aspect that investors often view as supportive for valuation stability.

Raised 2026 outlook and capital investment plans

As reported by The Globe and Mail on September 18, 2026, CN plans to invest approximately CAD 2.8 billion in its capital program during 2026, focusing on track, yard and technology improvements to enhance capacity and efficiency.

In the same coverage, management was cited as having raised its 2026 outlook, now expecting mid to high single digit adjusted earnings per share growth for fiscal year 2026 compared with the prior year, signalling a more confident stance on freight demand and pricing than earlier in the year.

For comparison, the article noted that CN shares recently traded around CAD 167 on the Toronto Stock Exchange, corresponding to roughly 19.5 times forward earnings; that valuation multiple places the stock at a premium to some industrial names but is typical for a large North American railway with a strong competitive position.

Investors also benefit from a regular cash return: CN pays a quarterly dividend of CAD 0.915 per share, equating to CAD 3.66 annually and implying a yield of about 2.2 percent at the referenced share price level, which is an important component of total return for long-term holders.

Latest fundamentals and investor takeaways

CN’s mid to high single digit adjusted EPS growth guidance for fiscal year 2026, as cited by The Globe and Mail on September 18, 2026, implies that earnings per share for 2026 are expected to grow faster than the low single digit pace that many freight carriers had pencilled in earlier, offering a modest but tangible acceleration.

Historically, the same coverage indicated that CN’s annual dividend at CAD 3.66 per share compares with a current yield of roughly 2.2 percent at the CAD 167 share price, meaning that the yield would rise to about 2.4 percent if the price were to retreat to CAD 150, a level some value-focused investors might watch as a more attractive entry point.

For retail investors, the combination of an eight-year operating pact with Amtrak, a CAD 2.8 billion capital program in 2026 and updated EPS guidance provides a clearer picture of CN’s strategy: invest heavily in infrastructure, lock in long-term operating arrangements and aim for steady earnings expansion backed by resilient freight volumes.

Stock price level and valuation context

On its primary listing at the Toronto Stock Exchange under ticker CNR, CN shares most recently traded around CAD 167 in mid September 2026 per the valuation context cited by The Globe and Mail, with the price-to-forward-earnings ratio at about 19.5.

That level sits comfortably within the range at which large North American rail operators have traded historically, especially given CN’s diversified traffic base across intermodal, bulk and merchandise freight and its exposure to both Canadian and US economic activity.

For investors watching the stock into the next set of quarterly results, the key metrics will likely be whether revenue growth and margin trends support the mid to high single digit EPS expansion target and how efficiently the CAD 2.8 billion capital budget is deployed across the network.

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