Union Pacific, Norfolk Third-Quarter Adjusted Earnings Top Views Amid Volume Growth

02:38 PM EDT, 10/22/2026 (MT Newswires) -- Union Pacific (UNP) and fellow railroad operator Norfolk Southern (NSC) reported third-quarter adjusted earnings above Wall Street's estimates, aided by volume growth. Union Pacific's adjusted earnings rose to $3.53 a share in the September quarter from $3.08 a year earlier, surpassing the FactSet-polled consensus of $3.47. Operating revenue surged 15% to $7.2 billion, while analysts expected $7.16 billion. The top-line was driven by higher fuel surcharge, 6% volume growth, "core" pricing gains and increased other revenue, partially offset by business mix, the company said Thursday. Separately, Norfolk reported that its third-quarter adjusted EPS rose to $3.62 from $3.30 a year earlier, ahead of the FactSet-polled consensus of $3.46. Railway operating revenue of about $3.5 billion was a "quarterly record," up 14% year over year, on a 3% volume gain, the company said. "Demand for rail service increased during the quarter, as a tighter trucking market highlighted rail's competitive advantages and underscored the opportunity for a more efficient, capacity-enhanced freight network," Norfolk Chief Executive Mark George said in a statement. Union Pacific shares were up 2.7% in afternoon trade, while Norfolk rose 2.2%. Taking out the impact of fuel price and merger costs, Union Pacific's core operating ratio improved 110 basis points from last year, CEO Jim Vena said on an earnings conference call, according to a FactSet transcript. Last year, Union Pacific agreed to acquire Norfolk in a cash-and-stock deal valuing the smaller railroad operator at about $85 billion. "We executed at a consistently high level, enabling record financial results," Vena said in a statement Thursday. "We look forward to the upcoming steps of the Surface Transportation Board's merger review process." The Norfolk merger is expected to close in the second half of 2027, Union Pacific Chief Financial Officer Jennifer Hamann said on the call. Last week, Union Pacific said Hamann intends to retire early next year. For the full-year, Union Pacific said it continues to EPS growth of high-single digit. Price: 296.62, Change: +8.75, Percent Change: +3.04