Union Pacific Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +5.95%.
Did UNP Beat Earnings? Q1 2026 Results
Union Pacific kicked off 2026 on firm footing, posting adjusted diluted EPS of $2.93 for the first quarter, clearing the $2.86 consensus estimate by 2.54%, while revenue of $6.22 billion edged past expectations and grew 3.1% year over year. The strongest single driver behind the beat was a standout operational performance: terminal dwell improved 11% to a best-ever 19.7 hours and fuel efficiency gains contributed to freight revenue climbing 4% to $5.89 billion, helping the adjusted operating ratio tighten 80 basis points to 59.9%. Net income rose 5% to $1.70 billion, with cash from operations expanding to $2.44 billion from $2.21 billion a year ago. The Bulk segment led commodity groups with a 10% revenue gain, while softness in the Premium segment, where intermodal slipped 6%, served as a modest counterweight. Looking ahead, management affirmed its 2026 target of mid-single digit reported EPS growth, maintaining confidence that pricing dollars will exceed inflation dollars even against a muted economic backdrop, with the pending Norfolk Southern merger continuing through the regulatory process.
- Core pricing gains driving freight revenue growth
- Fuel surcharge revenue contribution
- Bulk segment strength led by coal & renewables and grain volumes
- Record terminal dwell of 19.7 hours (11% improvement)
- Record locomotive productivity at 144 GTMs per horsepower day
- Freight car velocity improvement of 9% to 235 daily miles per car
- Workforce productivity improvement of 7% to 1,163 car miles per employee
- Fuel consumption rate improvement of 4%
- Improved safety metrics for personal injury and derailment rates
“Our safety, service, and operating momentum continued in the first quarter as we further challenged 'what's possible' from our great railroad. We grew reported net income 5%, increased earnings per share 6%, and improved our operating ratio. As we advance through the regulatory process to create America's first transcontinental railroad, we have a solid foundation for another year of industry-leading results.”
Union Pacific CEO, on the earnings call
Forward Guidance & Outlook
Union Pacific affirmed its 2026 outlook: mid-single digit reported EPS growth, consistent with attaining a three-year CAGR target of high-single to low-double digit growth through 2027. The company expects pricing dollars in excess of inflation dollars, continued operating ratio improvement, industry-leading operating ratio and return on invested capital, continued strong cash generation, a capital plan of $3.3 billion, and consistent annual dividend increases. Management noted a muted economic forecast but strong service to meet customer demand.
UNP YoY Financials
UNP Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.