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    What Canadian National Railway (TSX:CNR)'s Strong Q2, Buybacks and Union Pacific Deal Mean For Shareholders

    Simply Wall St·08/03/2026 03:31:59
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    • In July 2026, Canadian National Railway reported higher second-quarter 2026 results, with sales of CA$4,753 million and net income of CA$1,249 million, while also affirming a CA$0.915 dividend and completing CA$1,075 million of share buybacks for 7,200,000 shares under its current program.
    • At the same time, a new binding Memorandum of Understanding with Union Pacific expanded each railroad’s operating rights in Chicago and on the Memphis–Eagle Pass corridor, aiming to enhance cross-border freight flows between Canada, the U.S., and Mexico.
    • We’ll now examine how the new Union Pacific partnership shapes Canadian National Railway’s investment narrative and its outlook on cross-border growth.

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    Canadian National Railway Investment Narrative Recap

    To own Canadian National Railway, you need to believe its tri-coastal network and cross-border corridors can keep attracting freight even when industrial demand is uneven. The new Union Pacific MOU directly supports that thesis by opening up the Memphis–Eagle Pass route, but it does not remove key short term risks around macro uncertainty and potential volume pressure in merchandise and bulk freight.

    Among the recent announcements, the Q2 2026 earnings release matters most here, because it shows how CN is performing as it expands its North American reach. Higher quarterly sales and net income, alongside continued dividends and buybacks, give investors a current snapshot of how well the company is managing costs and pricing while it pursues cross border growth.

    Yet behind the cross border opportunity, investors still need to watch how prolonged weak industrial demand could affect CN's volumes and pricing power...

    Read the full narrative on Canadian National Railway (it's free!)

    Canadian National Railway's narrative projects CA$20.2 billion revenue and CA$5.7 billion earnings by 2029. This requires 5.4% yearly revenue growth and about a CA$1.0 billion earnings increase from CA$4.7 billion today.

    Uncover how Canadian National Railway's forecasts yield a CA$177.79 fair value, in line with its current price.

    Exploring Other Perspectives

    TSX:CNR 1-Year Stock Price Chart
    TSX:CNR 1-Year Stock Price Chart

    Five members of the Simply Wall St Community currently estimate CN’s fair value between CA$132.87 and CA$177.79, showing a wide range of views. When you set those against the cross border growth potential from the Union Pacific agreement, it underlines how differently people are weighing future volume and earnings resilience.

    Explore 5 other fair value estimates on Canadian National Railway - why the stock might be worth as much as CA$177.79!

    The Verdict Is Yours

    Disagree with existing narratives? Extraordinary investment returns rarely come from following the herd, so go with your instincts.

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    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.