Union Pacific Corporation · UNP · FY2026 Q2 · Calendar Q3 2026

UNP Q2 2026: Record EPS $3.41, Guidance Raised as Norfolk Southern Merger Clears Key Hurdles

Union Pacific delivered record Q2 2026 results, with adjusted EPS of $3.41 beating consensus by 6.6% and revenue of $6.86B exceeding estimates by 2.2%. The operating ratio improved to 59.2%, and management raised full-year EPS guidance to high-single-digit growth. The Norfolk Southern merger advanced meaningfully, with the STB accepting the application as complete on May 28, and a new settlement with Canadian National expanded EJ&E and Mexico gateway access. Volume growth was led by grain exports, domestic intermodal, and petrochemicals, while productivity gains (record car velocity of 231 miles per day) and pricing above inflation offset persistent fuel cost headwinds. The stock responded with a 5.3% abnormal move on 2.65x baseline volume.

Reported July 23, 2026Before market openNYSEIndustrials $177.81B market cap

100quality score

Company context

Snapshot as of publication

Union Pacific Corporation, a prominent American railway enterprise, conducts its primary operations through its subsidiary, Union Pacific Railroad Company. The company provides extensive freight transportation services for a wide array of commodities. Its diverse cargo includes agricultural products like grain, fertilizers, and refrigerated foods; energy resources such as coal, renewables, petroleum, and liquid petroleum gases; and industrial materials encompassing construction products, chemicals, plastics, forest products, metals, ores, soda ash, and sand.…

Earnings scorecard

Reported versus consensus

Reported EPS $3.41 Consensus $3

EPS surprise +6.6% Reported versus consensus

Reported revenue $6.86B Consensus $6.72B

Revenue surprise +2.2% Reported versus consensus

Market reaction

prior-close to event-session close

Stock move +4.0% Event window

SPY move -1.2% Same window

Abnormal move +5.3% Stock minus SPY

Volume 2.6× Versus trailing sessions

Subsequent drift -1.0% Up to 20 sessions

UNPSPY benchmark

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Transcript intelligence

What changed

Compared to Q1 2026, Union Pacific improved its operating ratio from 59.9% to 59.2%, grew net income from $1.7B to $2.0B, and raised full-year EPS guidance from mid-single-digit to high-single-digit growth. The Norfolk Southern merger transitioned from a delayed filing to STB acceptance of the completed application, and a new Canadian National settlement agreement provided EJ&E and Mexico access not present in the prior quarter. Freight car velocity reached a record 231 miles per day, up 5% year-over-year.

Guidance delta

Raised. Full-year EPS growth guidance increased from mid-single-digit (Q1 2026) to high-single-digit growth (Q2 2026). Capex outlook remains increasing.

Key takeaways

Record Q2 EPS of $3.41 beat consensus of $3.20 by 6.6%; revenue of $6.86B topped estimates by 2.2%.
Operating ratio improved to 59.2% from 59.9% in Q1, reflecting productivity gains and pricing above inflation.
Full-year EPS guidance raised to high-single-digit growth from mid-single-digit.
Norfolk Southern merger advanced: STB accepted the application as complete on May 28, with supplemental filings and hearings ahead.
Canadian National settlement agreement expands EJ&E and Mexico gateway access, a new strategic development.
Freight car velocity reached a record 231 miles per day, up 5% year-over-year.

Management priorities

Advancing the Norfolk Southern merger through the STB regulatory process, including supplemental filings and hearings.
Opening a new grain export facility in Grays Harbor, Washington to capture export demand.
Executing capital projects including the $125M Houston complex, Pacific Northwest siding extensions, and the Sunset double-track project.
Expanding open gateway interchanges and leveraging the Canadian National agreement for Mexico traffic.
Continuing safety and productivity investments, including AI-driven dispatch and terminal platforms.

Risks

Volatile diesel fuel prices remain a headwind to the operating ratio despite fuel surcharge mechanisms.
Weakness in coal demand driven by low natural-gas prices and mild weather.
Regulatory uncertainty around the Norfolk Southern merger approval timeline and potential concessions.
Competitive pressure from Canadian National, Canadian Pacific, and trucking alternatives.
Economic slowdown that could dampen industrial and automotive freight demand.

Analyst concerns

Specifics of the $0.14 per-car fuel surcharge benefit and its sustainability.
Impact of the Canadian National agreement on revenue synergies and competitive dynamics.
Coal volume outlook given secular headwinds from cheap natural gas.
Rising compensation per employee (up 6%) and its effect on the cost structure.
Timing and requirements of upcoming STB supplemental filings and hearings.

Editorial confidence: high

Related earnings events

Industrials

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Sources

Earnings call transcript and parsed analysis · 2026-07-23T18:04:53.627080+00:00
FN2 earnings calendar · 2026-07-28T01:23:15.070317+00:00
Polygon adjusted daily market bars · 2026-07-28T15:30:56.316494+00:00
Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T15:30:56.313421+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated July 28, 2026. For educational purposes only; not investment advice.