Union Pacific posts record quarter as volume climbs 6%, adjusted EPS up 15%

Union Pacific delivered record quarterly profit as carloads rose 6%, pushing earnings per share up 16%.

Net income rose to $2.1 billion, or $3.49 a share, from $1.8 billion, or $3.01, a year earlier, according to the earnings release the Omaha-based railroad filed with an 8-K on Thursday. Adjusted EPS increased 15% to $3.53.

Operating revenue grew 15% to $7.2 billion on higher fuel surcharges, the volume gain, core pricing and more other revenue, partly offset by business mix. Freight revenue excluding fuel surcharge rose 6%.

"Union Pacific's third quarter results demonstrate our ability to safely deliver the service we sold to our customers while efficiently handling six percent volume growth," CEO Jim Vena said in the release. He added that the company looks forward to "the upcoming steps of the Surface Transportation Board's merger review process."

Efficiency held despite fuel

The reported operating ratio improved 10 basis points to 59.1%, while the adjusted operating ratio rose 30 basis points to 58.8%. The company said higher fuel prices hurt the operating ratio by 140 basis points.

Operating measures improved across the board. Freight car velocity rose 1% to 228 daily miles per car, terminal dwell improved 2% to 19.9 hours and workforce productivity climbed 5% to 1,219 car miles per employee.

Outlook affirmed

Union Pacific said it remains on track with its investor day targets, expecting reported EPS growth in the high single digits for 2026, consistent with a three-year compound growth target of high single to low double digits through 2027. It also expects pricing dollars to exceed inflation dollars.

By the numbers

• Diluted EPS: $3.49, up 16%
• Adjusted EPS: $3.53, up 15%
• Operating revenue: $7.2 billion, up 15%
• Revenue carloads: up 6%
• Operating ratio: 59.1% reported, 58.8% adjusted

Sources

1. Union Pacific Corporation, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release dated Oct. 22, 2026, accession 0000100885-26-000319

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