Union Pacific's third-quarter 2026 net income rose 16% year on year to $2.1bn, the railroad said on 22 October 2026. Norfolk Southern, which Union Pacific has agreed to acquire, reported the same day. Its diluted earnings per share rose 7% to $3.37 on revenue of $3.5bn, which it called a quarterly record.
- Union Pacific operating revenue7.2 $bn
- Union Pacific diluted EPS3.49 $
- Norfolk Southern operating revenue3.5 $bn
- Norfolk Southern diluted EPS3.37 $
- Union Pacific fuel expense1,040 $m
| Measure | Union Pacific | Norfolk Southern |
|---|---|---|
| Operating revenue | $7.2bn | $3.5bn |
| Revenue growth, year on year | 15% | 14% |
| Volume growth, year on year | 6% (revenue carloads) | 3% |
| Operating ratio | 59.1% | 67.4% |
| Operating ratio, Q3 2025 | 59.2% | 64.6% |
| Diluted EPS | $3.49 | $3.37 |
| Diluted EPS growth, year on year | 16% | 7% |
Source: Union Pacific Corporation, Q3 2026 results (Form 8-K, Exhibit 99.1); Norfolk Southern Corporation, Q3 2026 results (Form 8-K, Exhibit 99.1), Q3 2026.
Higher fuel surcharges lifted revenue at both companies in Q3 2026, and fuel also raised costs. Union Pacific's fuel expense rose 69% year on year to $1,040m. It said higher fuel prices added 140 basis points to its operating ratio, which still improved by 10 basis points to 59.1%. At Norfolk Southern, higher fuel surcharges accounted for eight points of its 14% revenue growth, and its operating ratio worsened to 67.4% from 64.6% a year earlier. Its adjusted operating ratio, which excludes merger-related expenses and costs tied to the February 2023 derailment in East Palestine, Ohio, which the company calls the Eastern Ohio incident, was 65.4%.
“Demand for rail service increased during the quarter, as a tighter trucking market highlighted rail's competitive advantages and underscored the opportunity for a more efficient, capacity-enhanced freight network.”
Union Pacific described its Q3 2026 results as records for freight revenue, operating revenue, operating income and net income. For 2026 it affirmed a target of high-single-digit growth in reported earnings per share and set its capital plan at $3.5bn. It said its reported operating ratio for the year is challenged by high fuel prices.
- Union Pacific Corporation, Q3 2026 results (Form 8-K, Exhibit 99.1), 22 Oct 2026, 13:46 CEST
- Norfolk Southern Corporation, Q3 2026 results (Form 8-K, Exhibit 99.1), 22 Oct 2026, 14:20 CEST
- Norfolk Southern Corporation, Q3 2026 financial statements (Form 8-K, Exhibit 99.2), 22 Oct 2026, 14:20 CEST