Union Pacific Q3 EPS rises 16% to $3.49 on volume growth

Union Pacific Corporation (NYSE: UNP) reported third quarter 2026 diluted earnings per share of $3.49, a 16% increase from the prior year period, driven by a 6% growth in revenue carloads. The railroad posted net income of $2.1 billion for the quarter, up 16% from $1.8 billion in the third quarter of 2025.

Chief Executive Officer Jim Vena attributed the record financial results to the company's ability to handle volume growth while maintaining service levels. He noted that the results reinforce the company's position as an industry leader and expressed anticipation for the upcoming steps in the Surface Transportation Board's merger review process.

Operating revenue reached $7.2 billion in the third quarter, a 15% increase year over year. This growth was driven by higher fuel surcharges, volume growth, core pricing gains, and increased other revenue, partially offset by business mix changes. Freight revenue excluding fuel surcharge increased by 6%. The reported operating ratio improved by 10 basis points to 59.1%, while the adjusted operating ratio increased by 30 basis points to 58.8%. Vena indicated that higher fuel prices unfavorably impacted the operating ratio by 140 basis points.

Operational metrics showed improvements across key physical indicators. Freight car velocity rose 1% to 228 daily miles per car, and average terminal dwell improved by 2% to 19.9 hours. Fuel consumption rate improved by 2% to 1.034 gallons per thousand gross ton-miles. Workforce productivity increased by 5% to 1,219 car miles per employee. The reportable personal injury rate also improved during the period.

Union Pacific affirmed its 2026 outlook, stating it is on track with its Investor Day targets. The company expects high-single-digit reported earnings per share growth, consistent with its three-year compound annual growth rate target of high-single to low-double digit through 2027. It anticipates pricing dollars in excess of inflation dollars and continued industry-leading operating ratio and return on invested capital. The outlook includes a capital plan of $3.5 billion, with the reported operating ratio expected to be challenged by high fuel prices while core business operations drive improvement.

The company operates in 23 western states and webcast its earnings presentation on October 22, 2026.