| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 31 | 27.3x | 17.8x | Bottom tier | |
Growth | 19 | 3.0% | 7.1% | Bottom tier | |
Quality | 69 | 10.1% | 4.5% | Top tier | |
Safety | 56 | 2.9x | 2.6x | Around median | |
Capital Return | 42 | 1.69% | 2.12% | Around median | |
Momentum | 77 | 21.2% | 2.9% | Top tier | |
Sentiment | 84 | 12 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Norfolk Southern Corporation operates a rail freight transportation network and generates revenue from transporting goods across three business lines disclosed in its filings: merchandise, intermodal, and coal. Revenue growth is tied to shipment volume and revenue per unit, while results are also affected by fuel surcharges, traffic mix, contract pricing, network velocity, and locomotive and labor utilization efficiency.
In Q2 fiscal 2026, Norfolk Southern recorded revenue of $3.5 billion, net income of $734 million, and earnings per share of $3.26 according to EDGAR data, compared with annual revenue of $12.2 billion, net income of $2.9 billion, and earnings per share of $12.75 in fiscal 2025. Management reported that quarterly net income and earnings per share each grew 7% year over year, while adjusted operating income increased 5%.
Total shipment volume increased 4% in Q2 fiscal 2026; merchandise volumes grew 2% and revenue excluding fuel grew 4%, intermodal volumes increased 5% and revenue excluding fuel rose 7%, and coal volumes increased 3%. The adjusted operating ratio was 65.5%, but it increased 210 basis points year over year, as fuel added approximately 110 basis points of pressure and inflation added approximately 190 basis points, despite the ratio improving 320 basis points from the previous quarter.
The average analyst price target is $367.57, within a relatively wide range of $355 to $400, against a neutral consensus, and the average is approximately 2.5% above the 52-week range high of $358.60. No valid price-to-earnings multiple is available in the data, so NSC's valuation rests on the company's ability to convert volume growth and cost reductions into an improved operating ratio, while accounting for analysts' divided views on the $85 billion merger transaction.
Figures in the text are as of 2026-08-27; the live price is shown at the top of the page.
Norfolk Southern recorded revenue of $3.5 billion, net income of $734 million, and earnings per share of $3.26 in Q2 fiscal 2026. Total shipment volume grew 4%, while net income and earnings per share increased 7% year over year. Adjusted operating income also rose 5% despite fuel and inflation pressures.
Intermodal achieved the strongest growth, with volume increasing 5%, revenue excluding fuel rising 7%, and revenue per unit excluding fuel increasing 1%. Merchandise volume rose 2% and revenue excluding fuel increased 4%, supported by energy demand in the chemicals market. Coal volumes grew 3% amid increased activity from a new metallurgical coal export customer and thermal coal export opportunities.
The adjusted operating ratio was 65.5% in Q2 fiscal 2026, after increasing 210 basis points year over year and improving 320 basis points from the previous quarter. The company is targeting cost reductions of at least $150 million during 2026 and cumulative savings of at least $650 million over three years. Conversely, it raised its 2026 operating expense outlook to $8.8–$8.9 billion because of an expected $400–$500 million addition to fuel expense.
Automated analysis for informational purposes only — not investment advice.
Intermodal volume grew 5% in Q2 fiscal 2026, although share losses associated with the merger announcement reduced growth by approximately three percentage points, according to management. The domestic business benefits from higher trucking rates and tighter trucking capacity, while management said it now takes a few quarters for pricing pressure to flow through to Norfolk Southern contracts, compared with longer periods previously. However, tariffs and trade uncertainty remain a source of pressure on international volumes.
The announced transaction is valued at $85 billion, and an August 10, 2026 report showed divisions over it among Wall Street analysts and hedge funds because of regulatory risks and the timeline. Management believes that eliminating shipment interchange friction and creating connected single-line service can deliver greater value to customers, and noted on July 23, 2026 an agreement with CN to enhance competition. Conversely, most research firms adopted a neutral stance, and the company acknowledged previous share losses involving specific business that it may not recover.
The consensus is neutral, with an average price target of $367.57, a high target of $400, and a low target of $355. The average is approximately 2.5% above the 52-week range high of $358.60, reflecting expectations that require continued operating and commercial momentum. The data does not include a valid price-to-earnings multiple, so merger developments, the operating ratio, and volume growth remain the most important available valuation factors.
