CN Railway Stock Plummets on Missed Revenue Targets, Trade Uncertainty

Canadian National Railway shares dropped 6% to C$147.91, marking the steepest single-day decline since December 2021. The Montreal-based carrier reported first-quarter revenue of C$4.38 billion, falling short of analyst expectations of C$4.4 billion and down 1% year-over-year. Key Details CN's earnings per share met projections despite the revenue miss. Grain and fertilizer shipments surged 10% thanks to record volumes and reduced Chinese tariffs on canola. However, metals and minerals revenue dropped 11%, while forest products fell 12% and automotive declined 5%, both pressured by U.S. tariff policies. Why It Matters CEO Tracy Robinson acknowledged the unpredictability of USMCA renegotiations and broader trade policies during analyst calls. The company maintained its full-year guidance despite near-term headwinds, expecting flat growth in revenue ton-miles and assuming the Canadian dollar will trade at 73 U.S. cents. What's Ahead Fuel cost inflation from Middle East tensions will weigh on first-half earnings, though potential improvements are expected in the second half. CN's operating ratio increased to 64.6%, signaling efficiency challenges that missed market expectations for operational leverage following stronger performances by U.S. peers.