| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 36 | 23.0x | 17.8x | Bottom tier | |
Growth | 34 | 4.2% | 7.1% | Bottom tier | |
Quality | 86 | 16.3% | 4.5% | Top tier | |
Safety | 65 | 2.2x | 2.6x | Around median | |
Capital Return | 42 | 1.94% | 2.12% | Around median | |
Momentum | 86 | 34.5% | 2.9% | Top tier | |
Sentiment | 85 | 15 | 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.
Union Pacific operates a freight rail network and generates revenue from shipment volumes, core pricing, fuel surcharges, ancillary services, and additional services. Its business is divided among bulk shipments, industrial commodities, and premium business, which includes intermodal and automotive transportation; in Q2 fiscal 2026, freight revenue was $6.5 billion out of total operating revenue of $6.9 billion, while other revenue was $346 million.
In Q2 fiscal 2026, operating revenue rose 12% to $6.9 billion, net income was $2.0 billion, and reported earnings per share were $3.36, or $3.41 excluding merger costs. The company recorded an operating ratio of 59.2%, equivalent to an implied operating margin of 40.8%, and management said the operating ratio would have been approximately 58% after removing the impact of fuel and nonrecurring items.
The growth mix was broad but uneven: bulk shipment revenue rose 7% despite a 1% volume decline, industrial revenue increased 8% with volume growth of 3%, and premium business revenue jumped 21% with a 4% volume increase and a 16% rise in average revenue per car. By contrast, domestic intermodal reached a fourth consecutive record quarter for volume and revenue, while international intermodal volume declined 14% year over year.
The analyst consensus is “Buy,” with an average price target of $330.5 and a relatively wide range of $294 to $363. The average is above the 52-week range high of $315.99, reflecting expectations of further earnings and operating improvement, but it also increases valuation sensitivity to any shortfall in the fiscal 2026 earnings-per-share growth outlook or the Norfolk Southern merger process. The absence of a reported price-to-earnings ratio in the data prevents this optimism from being tested through a direct comparison with earnings.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Operating revenue was $6.9 billion, up 12%, and freight revenue reached $6.5 billion. Net income was $2.0 billion, and reported earnings per share were $3.36, or $3.41 excluding merger costs. The operating ratio was 59.2%, while total volume rose 2% year over year.
The company raised its reported earnings-per-share growth outlook to a high-single-digit rate after achieving 6% growth in the first half of fiscal 2026. The improvement was based on stronger-than-expected volumes, core pricing that exceeded cost inflation, and operating efficiency that allowed the network to absorb higher volume. Management also expects continued improvement in the operating ratio despite pressure from fuel prices.
Domestic intermodal achieved a fourth consecutive record quarter for volume and revenue in Q2 fiscal 2026. Volumes of private, railroad-owned, and parcel assets increased at double-digit rates, supported by tight trucking capacity and the conversion of freight from road to rail. By contrast, international intermodal volume declined 14%, so the mix effect was slightly negative despite strong premium revenue, which rose 21%.
Automated analysis for informational purposes only — not investment advice.
The average fuel price rose from $2.42 to $3.86 per gallon in Q2 fiscal 2026, increasing fuel expense by 63% and adding 120 basis points to the operating ratio. At the same time, fuel surcharges added 750 basis points to freight revenue growth and increased revenue by approximately $460 million, while the difference between surcharges and expense resulted in a benefit of $0.14 per share. Management warned on July 23, 2026, that purchases exceeded $4 per gallon and that continued inflation could pressure consumer demand even if surcharges temporarily supported revenue.
The Surface Transportation Board accepted the merger application as complete on May 28, 2026, and Union Pacific was preparing in July 2026 to submit the requested supplemental information. The company also announced a settlement agreement with Canadian National and expanded gateway pricing commitments to address competition and access issues. Management presents potential benefits including direct single-line service, better reliability, and lower cost, but the transaction remained under regulatory review according to the information provided.
Q2 fiscal 2026 data indicate that freight car velocity improved 5% to 231 miles per day and terminal dwell declined 7% to 19.7 hours. Workforce productivity rose 5% despite 2% volume growth, while the active operating workforce declined 2% and train length increased 2% to approximately 9,900 feet. Management says the network retains more than 20% spare capacity, with investments including more than $125 million in the Houston complex and double-track and siding-extension projects.
