EL7.AI
StocksMedium•22 October 2026•
3 min read

Union Pacific adjusted earnings of $3.53 a share beat third-quarter estimates

Key Facts

1Adjusted earnings per share were $3.53, versus estimates of $3.47, in the third quarter of 2026.
2Operating revenue rose to $7.2 billion from $6.24 billion in the corresponding period.
3Reported net income was $2.08 billion, compared with $1.79 billion a year earlier.
4Domestic intermodal freight volume rose 13% year on year.
5The company updated its 2026 capital spending plan to $3.5 billion.

Union Pacific beat analysts' earnings estimates for the third quarter of 2026, posting adjusted earnings of $3.53 a share, according to Reuters' coverage of the results announced on October 22. Analysts had expected $3.47 a share, according to London Stock Exchange Group data cited by the agency. On a reported basis, the U.S. railroad's net income was $2.08 billion, according to Dow Jones Newswires. That compares with net income of $1.79 billion in the same quarter a year earlier. Reported diluted earnings per share were $3.49, up from $3.01 a year earlier, as freight volumes and revenue rose.

Third-quarter operating revenue rose to $7.2 billion, according to Reuters. The company had reported operating revenue of $6.24 billion in the corresponding period of 2025. Revenue also exceeded analysts' estimates of $7.13 billion, with the company beating forecasts for both revenue and adjusted earnings per share. In its earnings release, Union Pacific said revenue carloads increased 6% from the same quarter a year earlier. It added that freight revenue excluding fuel surcharges rose by the same 6% year on year in the third quarter of 2026.

Domestic intermodal freight stood out in the company's third-quarter volume growth. Its volume rose 13% from the same period a year earlier, according to Reuters. Meanwhile, Union Pacific said higher fuel prices adversely affected its operating ratio by 140 basis points. But Chief Executive Jim Vena said railroads benefit competitively from higher fuel prices, saying, according to Reuters: "When fuel prices rise, that naturally gives us an advantage." Vena attributed that advantage to railroads' ability to move freight at a lower cost per ton, even as the company itself bears the operational impact of higher fuel prices.

The results come as Union Pacific seeks to acquire Norfolk Southern, according to Reuters. The agency put the deal's value at $85 billion. The acquisition aims to create a freight network spanning the U.S. coasts. Union Pacific shares rose about 2% on October 22, 2026, the day the results were announced, according to Reuters. The gain came in early trading after the company reported adjusted earnings per share and operating revenue that exceeded analysts' estimates.

For the remainder of 2026, Union Pacific maintained its full-year earnings-per-share growth outlook, according to Dow Jones Newswires. The company is targeting growth in the high single digits. It said, according to the agency, that it "expects earnings-per-share growth in the high-single-digit range." On investment, the company updated its capital spending plan for the year, according to its earnings release. The plan now calls for $3.5 billion in 2026, alongside the unchanged full-year earnings growth outlook.