CN Rail Shares Plunge as Q1 Revenue Misses Expectations

Shares of Canadian National Railway Co. experienced a sharp sell-off after the company reported first-quarter revenue that failed to meet analyst expectations. The decline marks the stock's worst performance in over four years, reflecting investor anxiety over the broader North American trade outlook and macroeconomic headwinds affecting the logistics sector. The Montreal-based carrier reported revenue of C$4.38 billion ($3.2 billion) for the quarter, representing a 1% decrease compared to the same period last year. This figure fell slightly short of the C$4.4 billion forecast by analysts. Despite the revenue miss, the company's adjusted earnings remained in line with market projections, suggesting that cost management has offset some of the top-line pressure. However, the market's reaction underscores the sensitivity of rail transport to trade volumes. As a bellwether for industrial activity, CN Rail's performance suggests a cautious environment for regional commerce. Investors appear focused on the uncertainty of trade flows, which continues to weigh on the valuation of major North American transport infrastructure.