Union Pacific Q2 Earnings: Record Revenue, Raised Outlook, and Merger Progress

summarizeSummary

Union Pacific reported record Q2 2026 earnings, raised its full-year EPS growth outlook, and signaled progress on its Norfolk Southern merger, reinforcing its operational momentum and strategic positioning.

check_boxKey Events · Earnings and Guidance · UNP

• Record Q2 Financial Results

  Net income of $1.993 billion, up 6% YoY; diluted EPS $3.36, up 7%; adjusted diluted EPS $3.41, up 13%. Operating revenue reached $6.864 billion, a 12% increase.

• Freight Revenue Growth Ex-Fuel

  Freight revenue excluding fuel surcharge grew 4%, driven by volume increases and core pricing gains, with intermodal revenue up 26%.

• Operating Efficiency Gains

  Adjusted operating ratio improved to 59.2%, with record workforce productivity (1,176 car miles per employee, +5%) and fuel consumption rate (1.051 gallons/thousand GTMs, -1%).

• Raised 2026 EPS Outlook

  Full-year reported EPS growth raised to high-single digit, consistent with 3-year CAGR target of high-single to low-double digit through 2027.

auto_awesomeAnalysis · UNP · Energy & Transportation

Union Pacific delivered record Q2 results, with net income climbing 6% to $2.0 billion and adjusted EPS of $3.41, beating expectations. Freight revenue excluding fuel grew 4% on volume gains and pricing, while the adjusted operating ratio improved to 59.2%. The company raised its full-year EPS growth outlook to high-single digits, affirming its path to 2027 targets. CEO Jim Vena signaled readiness to advance the Norfolk Southern merger through the regulatory process, a key catalyst given the pending $71.5 billion deal. Strong cash generation and a healthy balance sheet support the capital plan and dividend growth.