Schneider Raises 2026 Earnings Guidance to $1.00–$1.10, Names Norfolk Southern Key Partner
Key Facts
On October 29, 2026, Schneider announced a strategic agreement making Norfolk Southern its primary rail services provider for its intermodal network in the eastern United States. On the same day, Schneider raised its adjusted diluted earnings per share guidance for fiscal 2026 to a range of $1.00–$1.10, compared with a previous range of $0.90 to $1.10 announced on July 30. The company said the agreement expands access to key markets and increases network flexibility, with opportunities to add new freight and shift shipments from trucks to intermodal transport. The partnership announcement came alongside quarterly results showing higher revenue and adjusted profitability at Schneider. The public announcement did not specify when the agreement would begin taking effect.
Schneider’s revenue was about $1.5853 billion in the third quarter of 2026, up 9% from $1.4524 billion in the same period of 2025. Adjusted diluted earnings per share rose to $0.29 from $0.12 a year earlier, an annual increase of 142%. Adjusted operating income also rose 66% to $63.8 million, while the adjusted operating ratio improved to 95.3% from 97.0% in the third quarter of 2025. These indicators reflect improvement in revenue and operating profitability during the period, alongside the company’s increase to the lower end of its annual forecast. Schneider said the improved results were tied to revenue management, productivity gains and cost reductions.
In Schneider’s intermodal business, revenue per order rose 3% in the third quarter compared with the same period a year earlier. Operating income in the business increased 35% to $22.6 million. The company attributed the income growth to freight mix and higher revenue per order, while noting pressure from increased purchased transportation costs. Schneider serves this business through more than 60 rail terminals in North America. It also operates about 23,900 trailers and 26,800 containers, and its drivers handle more than 90% of the domestic transportation linked to the terminals.
Schneider said its full-year outlook assumes continued recovery in contract rates and additional benefits from productivity and cost-reduction initiatives. It said peak-season demand and driver availability are important variables in its estimates. The company also raised its 2026 net capital expenditure guidance to a range of $325–$350 million, assuming an annual effective tax rate of about 22%. This places the earnings forecast within a set of operating and financial assumptions the company announced with its third-quarter results. Schneider had scheduled its earnings call for October 29, 2026, at 4:30 p.m. Eastern time.
At Norfolk Southern, intermodal volumes rose 3% in the third quarter of 2026, supported by steady consumer demand, favorable conditions in the trucking market and network improvements. Quarterly revenue reached a record $3.5 billion, up 14% year over year, while freight volume grew 3%. Fuel surcharges contributed eight percentage points to revenue growth. Chief Executive Mark George said demand for rail services increased during the quarter and that a tight trucking market highlighted rail’s competitive advantages. The company reported diluted earnings per share of $3.37, or $3.62 excluding merger expenses and the effects of the East Palestine, Ohio, incident.
Norfolk Southern said it is investing in its intermodal network, which spans 22 states, through increased gate capacity, terminal expansions, and reliability and security improvements. Projects include new service between Cincinnati and Atlanta, improvements to run double-stack trains between the Midwest and New England, and terminal expansions in several states. The agreement with Schneider adds a key partner to a network serving eastern markets, while the companies say their cooperative arrangements expand market access and support customer service and growth. Norfolk Southern shares closed at $338.09 on October 28, after $339.74 on October 27 and $333.99 on October 26. Schneider shares closed at $29.42 on October 29, down 0.88% for the session.