Union Pacific (NYSE:UNP) Announces Earnings Results

Union Pacific (NYSE:UNP) posted its earnings results on Thursday. The railroad operator reported $3.53 EPS for the quarter, beating the consensus estimate of $3.47 by $0.06, FiscalAI reports. The firm had revenue of $7.20 billion during the quarter, compared to the consensus estimate of $7.16 billion. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%. The business’s quarterly revenue was up 15.3% on a year-over-year basis. During the same period last year, the company earned $3.08 earnings per share.

Here are the key takeaways from Union Pacific’s conference call:

• Record third-quarter results: Net income reached $2.1 billion, adjusted EPS rose 15% to $3.53, and revenue increased 15% to $7.2 billion on 6% volume growth.
• Union Pacific reported continued operating gains, including a 110-basis-point improvement in its core operating ratio excluding fuel and merger costs, record workforce productivity, improved car velocity, and a 2% reduction in fuel consumption per unit.
• Premium and industrial markets remained strong, with domestic intermodal volume up 13%, international intermodal up 8%, and industrial revenue up 14%; management expects international intermodal volume to grow at a double-digit rate in the fourth quarter.
• Higher fuel prices remain a significant earnings headwind. Diesel averaged $4.21 per gallon in the third quarter and is expected to average approximately $4.85 in the fourth quarter, adding pressure to the reported operating ratio.
• Management continues to pursue regulatory approval for the Norfolk Southern merger, which it expects could close in the second half of 2027; the Surface Transportation Board’s public-comment process and opposition from some railroads and labor groups remain important uncertainties.

Union Pacific Stock Up 3.5%

Shares of NYSE UNP opened at $298.08 on Friday. The firm has a market cap of $177.08 billion, a PE ratio of 24.14, a P/E/G ratio of 2.86 and a beta of 0.95. Union Pacific has a 12-month low of $215.53 and a 12-month high of $315.99. The company’s fifty day simple moving average is $287.41 and its 200 day simple moving average is $278.18. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 1.40.

Union Pacific Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, August 31st were given a dividend of $1.42 per share. This represents a $5.68 dividend on an annualized basis and a dividend yield of 1.9%. The ex-dividend date was Monday, August 31st. This is a boost from Union Pacific’s previous quarterly dividend of $1.38. Union Pacific’s dividend payout ratio is presently 45.99%.

Wall Street Analyst Weigh In

Several brokerages recently commented on UNP. The Goldman Sachs Group set a $317.00 target price on Union Pacific and gave the company a “neutral” rating in a report on Thursday, July 23rd. Barclays restated an “overweight” rating and set a $350.00 price target (up from $315.00) on shares of Union Pacific in a report on Friday, July 24th. Benchmark raised their price target on shares of Union Pacific from $325.00 to $335.00 and gave the stock a “buy” rating in a report on Friday, July 24th. Wells Fargo & Company restated an “overweight” rating and issued a $335.00 price target (up from $315.00) on shares of Union Pacific in a research report on Friday, July 24th. Finally, BMO Capital Markets restated a “market perform” rating and issued a $320.00 price target (up from $285.00) on shares of Union Pacific in a research report on Friday, July 24th. Two research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and an average price target of $325.00.

Key Stories Impacting Union Pacific

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Quarterly earnings and revenue exceeded expectations. Adjusted EPS was $3.53 versus the $3.47 consensus, while revenue reached $7.20 billion, ahead of the $7.16 billion estimate. Adjusted profit increased 15%, supported by higher freight volumes, pricing gains and fuel-surcharge revenue. Reuters: Union Pacific quarterly profit rises
• Positive Sentiment: Operating momentum remained strong. Management cited approximately 6% volume growth and productivity improvements, with stronger rail demand as elevated trucking fuel costs encourage some cargo to shift to rail. Pricing discipline helped offset inflation and higher fuel expenses. Union Pacific posts record third-quarter revenue and profits
• Positive Sentiment: Full-year guidance was maintained or improved. Union Pacific affirmed expectations for reported 2026 EPS growth in the high-single-digit range and raised planned capital spending to $3.5 billion, indicating confidence in demand and network investment opportunities. Stephens lifted its price target to $352 from $340. Union Pacific affirms EPS growth and raises capex
• Neutral Sentiment: Merger approval remains a major catalyst and risk. CEO Vincenzo Vena expressed extremely high confidence that the Norfolk Southern transaction will receive approval, but the Surface Transportation Board review is not complete. Approval could expand Union Pacific’s long-term growth prospects, while delays or conditions could pressure the shares. Union Pacific CEO discusses merger approval
• Negative Sentiment: Costs and leadership transition warrant monitoring. Fuel prices, inflation and operating expenses remain headwinds, while CFO Jennifer Hamann plans to retire after 35 years. The stock’s elevated valuation—about 24 times earnings—also leaves less room for disappointment. Union Pacific CFO Jennifer Hamann to retire

Union Pacific Company Profile

Union Pacific Corporation (NYSE: UNP) is a transportation company that operates one of the largest freight railroad networks in the United States. Through its Union Pacific Railroad subsidiary, the company moves goods across the western two-thirds of the country, connecting major agricultural, industrial, energy, population and port markets.

Union Pacific transports a broad range of commodities and products, including agricultural goods, automotive shipments, chemicals, coal, industrial products, forest products and intermodal containers.