UNP earnings analysis
What we found in UNP's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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 industrial strength, operating income increased ~4% to ~$2.5 billion and operating ratio improved to 60.5% (down 0.2 pts). Cash from operations increased to $2,440 million and free cash flow was $631 million; management reiterated a 2026 capital plan of approximately $3.3 billion and paused share repurchases related to the pending Norfolk Southern acquisition.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue growth vs prior year
- Total operating revenues were $6,217 million in Q1 2026, up 3% from $6,027 million in Q1 2025 (filing reports $6,217 and $6,027).
- EPS improvement
- Diluted EPS was $2.87 in Q1 2026 versus $2.70 in Q1 2025, an increase of $0.17 (filing reports $2.87 and $2.70).
- Freight revenue strength (bulk & industrial)
- Freight revenues increased 4% to $5,893 million from $5,691 million; Bulk rose 10% to $2,026 million and Industrial rose 5% to $2,191 million (filing lists $5,893, $5,691, $2,026, $2,191).
- Improved operating efficiency
- Operating income rose ~4% to $2.5 billion and operating ratio improved to 60.5% from 60.7% (filing: operating income 'increased 4% to $2.5 billion' and operating ratio 60.5% vs 60.7%).
- Strong cash generation and free cash flow
- Cash provided by operating activities increased to $2,440 million (up 10% YoY) and free cash flow was $631 million (filing: $2,440 and $631).
- Capex plan and Q1 investment
- Q1 cash capital investments were $937 million and management expects a 2026 capital plan of approximately $3.3 billion (filing: $937 and 'approximately $3.3 billion').
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Sharp decline in international intermodal
- International intermodal carloads declined 28% in Q1 2026 (filing: 'international intermodal carloads... declined 28%').
- Rising operating costs / acquisition-related expense
- Operating expenses increased 3% to $3,759 million driven by inflation, higher fuel and acquisition-related expenses (filing: operating expenses $3,759, up 3%).
- Liquidity concentration and paused buybacks
- On March 31, 2026 the company had $735 million of cash and cash equivalents and $300 million of short-term investments with $2.0 billion available on the revolving facility; share repurchases were paused due to the pending Norfolk Southern acquisition (filing: $735, $300, $2.0 billion availability and 'paused our share repurchases').
- Financing cash outflow and repayment activity
- Cash used in financing activities was $(1,981) million in Q1 2026 versus $(878) million in Q1 2025, driven by less debt issuance and more debt repayment (filing: $(1,981) and $(878)).
- Acquisition-related lease buyouts increased
- Early lease buyouts included in locomotives and freight cars were $176 million in Q1 2026 versus $127 million in Q1 2025 (filing: 'early lease buyouts of $176 million in 2026 and $127 million in 2025').
- Pending Norfolk Southern transaction exposure
- The filing references the pending acquisition of Norfolk Southern (Note 17) and notes acquisition-related expenses and a pause of repurchases; this could affect near-term cash deployment and capital allocation (filing references Note 17 and 'paused our share repurchases').
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $2.87
- Operating margin
- 39.5%
- Segment
- Railroad (single reportable segment) - total operating revenues $6,217 million
- Segment
- Freight revenues: $5,893 million (up 4% YoY from $5,691 million)
- Segment
- Bulk: $2,026 million (up 10% YoY)
- Segment
- Industrial: $2,191 million (up 5% YoY)
- Segment
- Premium: $1,676 million (down 5% YoY)
- Segment
- Intermodal: $1,116 million (down 6% YoY); intermodal carloads down 9% (international intermodal down 28%)
What they said about what is next.
The 10-Q contains no explicit numeric revenue or EPS guidance. Management states a 2026 capital plan of approximately $3.3 billion and indicates sufficient borrowing capacity and expectation to remain in compliance with debt covenants; share repurchases are paused due to the pending Norfolk Southern acquisition (filing: 'we expect our capital plan to be approximately $3.3 billion', 'we have $2.0 billion of credit available', 'paused our share repurchases').
The filing reads better than the one before it.
What came before.
- 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%)…
- 10-Q · July 25, 2024
- Union Pacific reported Q2 2024 operating revenues of $6,007 million and diluted EPS of $2.74, modestly above the prior year and consensus. Operating income expanded to $2,400 million and operating cash flow remained…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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