10-Q · April 23, 2026
Union Pacific reported solid Q1 2026 results with operating revenues of $6,217 million (up 3% YoY) and diluted EPS of $2.87 (vs $2.70 in Q1 2025). Freight revenues rose to $5,893 million (up 4%) driven by bulk and…
Earnings analysis · 10-Q
UNP earnings analysis
Filed October 22, 2026 · Our reading of the company's report
The latest report
Union Pacific delivered strong third-quarter growth, with revenue up 15% to $7,197 million, diluted EPS up 16% to $3.49, and the operating ratio improving 0.1 points to 59.1%. Industrial and premium freight led segment…
Read full summary
Union Pacific delivered strong third-quarter growth, with revenue up 15% to $7,197 million, diluted EPS up 16% to $3.49, and the operating ratio improving 0.1 points to 59.1%. Industrial and premium freight led segment growth, while 6% volume growth, pricing, and productivity offset a 69% increase in fuel expense. Liquidity and leverage improved, but elevated fuel costs and the pending Norfolk Southern transaction—with approximately $20 billion of expected cash consideration—remain significant risks.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.49
- Operating margin
- 40.9%
- Segment
- Railroad is the sole reportable operating segment. Total operating revenue increased 15% year over year to $7,197 million from $6,244 million.
- Segment
- Bulk freight revenue increased 10% to $2,116 million from $1,930 million; volume was essentially flat at 529,000 carloads versus 530,000.
- Segment
- Industrial freight revenue increased 14% to $2,509 million from $2,194 million; volume increased 6% to 606,000 carloads from 574,000.
- Segment
- Premium freight revenue increased 21% to $2,188 million from $1,803 million; volume increased 9% to 1.158 million carloads from 1.059 million, including 11% intermodal volume growth.
What stood out
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Revenue and EPS exceeded consensus
Third-quarter operating revenue rose 15% year over year to $7,197 million, while diluted EPS increased to $3.49 from $3.01. Revenue exceeded the provided consensus estimate of $7,130 million and EPS exceeded the $3.47 estimate.
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Operating execution offset fuel pressure
Operating income increased 15% to $2,943 million from $2,549 million, and the operating ratio improved to 59.1% from 59.2% despite a 69% increase in fuel expense to $1,040 million.
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Volume and pricing drove freight growth
Freight revenue increased 15% to $6,813 million, supported by 6% carload growth to 2.293 million and an 8% increase in average revenue per car to $2,971. Fuel surcharge revenue increased to $1.2 billion from $602 million.
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Cash generation strengthened
Operating cash flow increased 18% to $8,302 million for the first nine months, while reported free cash flow was $2,362 million versus $1,856 million in the prior-year period. Cash flow conversion improved to 95% from 81%.
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Liquidity position improved
Cash and cash equivalents increased to $2,211 million from $1,266 million at year-end, supplemented by $875 million of short-term investments and $2.0 billion available under the revolving credit facility.
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Leverage continued to improve
Debt declined to $30,324 million from $31,814 million at December 31, 2025, and adjusted debt to adjusted EBITDA improved to 2.4x from 2.7x.
What to watch
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Fuel inflation remains a margin headwind
Locomotive diesel prices averaged $4.21 per gallon in the third quarter versus $2.56 in the prior year, driving a 69% increase in fuel expense to $1,040 million. Year-to-date operating ratio deteriorated 0.1 points to 59.7%.
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Large acquisition financing and approval risk
The pending Norfolk Southern acquisition is expected to require approximately 225 million new Union Pacific shares and approximately $20 billion of cash consideration, funded through new debt and accumulated operating cash flow. The transaction remains subject to Surface Transportation Board approval and is currently expected to close in the second half of 2027.
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Litigation and environmental exposure increased
A biometric privacy lawsuit was certified as a class action on August 20, 2026. Separately, environmental liabilities increased to $274 million from $257 million at year-end, with the company identifying 346 potentially liable remediation sites.
Management's outlook
No numeric EPS or revenue guidance was provided in the 10-Q. Management expects the 2026 capital plan to be approximately $3.5 billion and states it expects to continue complying with debt covenants. The filing does not quantify the previously communicated high-single-digit EPS growth outlook.
Earlier filings 4
10-Q · October 23, 2025
Union Pacific reported Q3 operating revenues of $6,244 million (up $153 million vs. Q3 2024) and operating income of $2,549 million, driving diluted EPS of $3.01 (vs. $2.75 a year ago). Operating margin expanded to…
10-Q · July 24, 2025
Union Pacific reported Q2 2025 operating revenues of $6,154 million (up $147 million vs Q2 2024) and diluted EPS of $3.15 (vs $2.74 in Q2 2024), beating consensus. Operating income rose to $2,525 million and operating…
10-Q · October 24, 2024
Union Pacific reported third-quarter operating revenues of $6,091 million, up $150 million (≈2.5%) year-over-year driven by freight revenue growth. Operating income increased to $2,416 million (up $239 million, +11.0%)…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.