01—Abstract
Summary
Summary of the 10-Q filed April 23, 2026. Cited figures are marked; the original filing is the authoritative source.
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 billiona, 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 billionb, 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%c 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.
02—Key points
Key Highlights
- Total operating revenues increased 3% to $6.22 billion for Q1 2026.
- Freight revenues grew 4% to $5.89 billion, driven by core pricing gains and higher fuel surcharges, despite a 1% decrease in carloads.
- Net income increased to $1.70 billion ($2.87 per diluted share) from $1.63 billion ($2.70 per diluted share) in Q1 2025.
- Operating ratio improved slightly to 60.5% from 60.7%, reflecting operational efficiencies.
- Significant operational improvements include a 9% increase in freight car velocity and an 11% decrease in terminal dwell time.
- Acquisition-related expenses totaled $36 million for the quarter, related to the pending Norfolk Southern acquisition.
- Cash provided by operating activities increased 10% to $2.44 billion.
- The company is progressing with its pending acquisition of Norfolk Southern, with a revised application to the STB planned for April 30, 2026.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed April 23, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $6.22B$6.03B | +3.2% |
| Operating Expenses | $3.76B$3.66B | +2.8% |
| Operating Income | $2.46B$2.37B | +3.7% |
| Net Income | $1.70B$1.63B | +4.6% |
| EPS (Basic) | $2.87$2.71 | +5.9% |
| EPS (Diluted) | $2.87$2.70 | +6.3% |
| Shares Outstanding (Basic) | 593.00M601.00M | −1.3% |
| Shares Outstanding (Diluted) | 593.60M601.90M | −1.4% |
05—Questions
Frequently Asked Questions
What was Union Pacific's revenue performance in the first quarter of 2026?
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.
How did Union Pacific's profitability change in the first quarter of 2026?
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.
What is the status of the proposed acquisition of Norfolk Southern?
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.
What are the key operational highlights from the first quarter?
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%.
06—Continue