10-QPeriod: Q1 FY2026

UNION PACIFIC CORP Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 23, 2026For Securities:UNP

Summary

Union Pacific Corporation (UNP) reported solid financial results for the first quarter of 2026, demonstrating revenue growth and operational improvements compared to the prior year. Total operating revenues increased by 3% to $6.22 billion, primarily driven by a 4% rise in freight revenues, which reached $5.89 billion. This top-line growth was achieved despite a slight 1% decrease in overall carloads, signaling effective pricing strategies, higher fuel surcharge revenues, and a favorable shift in business mix. The company's operational efficiency also improved, as evidenced by an increase in freight car velocity and a reduction in terminal dwell times. Net income rose to $1.70 billion, or $2.87 per diluted share, up from $1.63 billion, or $2.70 per diluted share, in the first quarter of 2025. This profitability reflects the company's ability to manage operating expenses, which grew by 3% to $3.76 billion, impacted by inflation, higher fuel prices, and acquisition-related costs, but also benefiting from productivity gains. The operating ratio improved slightly to 60.5% from 60.7%, indicating enhanced efficiency. Investors should note the ongoing progress and potential complexities related to the pending acquisition of Norfolk Southern, which continues to be a significant strategic development.

Financial Highlights

46 data points
Beta

Revenue

$6.22B

Net Income

$1.70B

27.4% Net Margin

EPS (Diluted)

$2.87

Total Assets

$69.64B

Cash & Equivalents

$735.00M

Free Cash Flow

$1.50B

Financial Statements
Beta
Revenue$6.22B
Operating Expenses$3.76B
Operating Income$2.46B
Net Income$1.70B
EPS (Basic)$2.87
EPS (Diluted)$2.87
Shares Outstanding (Basic)593.00M
Shares Outstanding (Diluted)593.60M

Key Highlights

  • 1Total operating revenues increased 3% to $6.22 billion for Q1 2026.
  • 2Freight revenues grew 4% to $5.89 billion, driven by core pricing gains and higher fuel surcharges, despite a 1% decrease in carloads.
  • 3Net income increased to $1.70 billion ($2.87 per diluted share) from $1.63 billion ($2.70 per diluted share) in Q1 2025.
  • 4Operating ratio improved slightly to 60.5% from 60.7%, reflecting operational efficiencies.
  • 5Significant operational improvements include a 9% increase in freight car velocity and an 11% decrease in terminal dwell time.
  • 6Acquisition-related expenses totaled $36 million for the quarter, related to the pending Norfolk Southern acquisition.
  • 7Cash provided by operating activities increased 10% to $2.44 billion.
  • 8The company is progressing with its pending acquisition of Norfolk Southern, with a revised application to the STB planned for April 30, 2026.

Frequently Asked Questions

Union Pacific reported a 3% increase in total operating revenues to $6.22 billion for the first quarter of 2026. Freight revenues, the largest component, grew by 4% to $5.89 billion, driven by core pricing, higher fuel surcharges, and a favorable business mix, which offset a 1% decline in overall carloads.

Net income rose to $1.70 billion in the first quarter of 2026, up from $1.63 billion in the same period of 2025. Diluted earnings per share increased to $2.87 from $2.70. The operating ratio also saw a slight improvement, moving from 60.7% to 60.5%, indicating better operational efficiency.

The acquisition of Norfolk Southern is ongoing, but facing regulatory hurdles. The Surface Transportation Board (STB) did not accept the initial application as complete and has directed the applicants to file a revised application. A revised application is planned for submission on April 30, 2026. The transaction is expected to be accounted for as a business combination and is currently anticipated to be completed in 2027. Acquisition-related expenses for the quarter were $36 million.

Union Pacific demonstrated significant operational improvements. Freight car velocity increased by 9%, and average terminal dwell time decreased by 11%, contributing to a 4% increase in gross ton-miles and a 7% increase in revenue ton-miles despite a 1% drop in carloads. Workforce productivity also improved by 7%.