Norfolk Southern books record revenue, adjusted EPS climbs 10% to $3.62

Norfolk Southern rang up record quarterly revenue as rail volumes grew and fuel surcharges climbed, lifting adjusted earnings 10%.

Railway operating revenue rose $423 million, or 14%, to $3.5 billion in the third quarter, according to the earnings release the Atlanta-based railroad filed with an 8-K on Thursday. Volume increased 3%, and higher fuel surcharges accounted for eight points of the revenue growth.

Diluted EPS was $3.37, up 7%. Excluding merger-related expenses, the effects of the Eastern Ohio incident and prior-year restructuring charges, adjusted EPS was $3.62, up 10%.

"Demand for rail service increased during the quarter, as a tighter trucking market highlighted rail's competitive advantages," President and CEO Mark George said in the release, adding that the company kept "disciplined cost control despite rising fuel costs."

Margins under pressure

Income from railway operations rose 5% to $1.2 billion, but the operating ratio worsened to 67.4% from 64.6%. On an adjusted basis, the operating ratio was 65.4%, 210 basis points higher than a year earlier, while adjusted income from railway operations increased 7%.

Norfolk Southern did not buy back any stock in the first nine months of 2026, the release said, after repurchasing 2.2 million shares for $533 million in the same period last year.

By the numbers

• Revenue: $3.5 billion, a quarterly record, up 14%
• Diluted EPS: $3.37, up 7%
• Adjusted EPS: $3.62, up 10%
• Operating ratio: 67.4% reported, 65.4% adjusted
• Volume: up 3%

Sources

1. Norfolk Southern Corporation, Form 8-K (Items 2.02 and 7.01) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0001193125-26-428384

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