Union Pacific (UNP) · Transportation
Union Pacific Q2 2026 earnings: summary, key numbers & outlook
Results filed 23 Jul 2026 · Quarter ended 30 Jun 2026
Press release ↗Investor relations ↗
Summaries and transcripts are machine-generated and can contain errors.
In brief
Union Pacific reported second quarter 2026 net income of $2.0 billion, up 6%, diluted EPS of $3.36 and adjusted diluted EPS* of $3.41, with an operating ratio (OR) of 59.7% and adjusted OR* of 59.2%.
Union Pacific posted record second-quarter results. Operating revenue was $6.9 billion, up 12%, helped by higher fuel surcharges, volume growth and pricing gains. Freight revenue excluding fuel grew 4%. Net income was $2.0 billion and diluted EPS was $3.36, up 7%. Adjusted EPS was $3.41, up 13%. The operating ratio worsened by 70 basis points to 59.7%, as higher fuel prices cost 120 basis points.
Management raised its 2026 outlook. It now expects reported EPS growth in the high-single digits and affirmed a $3.3 billion capital plan, pricing above inflation and further operating ratio improvement. The tension is that the economic forecast is mixed, fuel costs weigh on margins, and the pending Norfolk Southern acquisition requires regulatory approval and brings acquisition costs, which were $35 million in the quarter.
Key numbers
- Operating revenue · GAAP
- $6.9 billion
- Net income · GAAP
- $2.0 billion
- Diluted EPS · GAAP
- $3.36
- Adjusted diluted EPS · non-GAAP
- $3.41
- Operating income · GAAP
- $2.8B
- Operating ratio · GAAP
- 59.7%
- Adjusted operating ratio · non-GAAP
- 59.2%
- Cash provided by operating activities (year-to-date) · GAAP
- $5.5B
up 12% from a year ago
up 6% from a year ago
up 7% from a year ago
up 13% from a year ago
up 9% from a year ago
up 70 basis points from a year ago
up 110 basis points from a year ago
| Segment or metric | Value | Change |
|---|---|---|
| Premium freight revenue | $2.1B | up 21% |
| Intermodal freight revenue | $1.4B | up 26% |
| Bulk freight revenue | $2.0B | up 7% |
| Industrial freight revenue | $2.4B | up 8% |
| Revenue carloads | $2.2M | up 2% |
| Freight car velocity (daily miles per car) | 231 | up 5% |
| Average terminal dwell (hours) | 19.7 hours | 7% improvement |
Where each number comes from
- Operating revenue: “Operating revenue of $6.9 billion increased 12% driven by higher fuel surcharge, volume growth, core pricing gains and greater other revenue partially offset by business mix.”
- Net income: “today reported second quarter 2026 net income of $2.0 billion, up 6%, and diluted EPS of $3.36, up 7%, compared to reported second quarter 2025 net income of $1.9 billion”
- Diluted EPS: “today reported second quarter 2026 net income of $2.0 billion, up 6%, and diluted EPS of $3.36, up 7%, compared to reported second quarter 2025 net income of $1.9 billion”
- Adjusted diluted EPS: “Adjusted second quarter 2026 net income* of $2.0 billion increased 12%, and adjusted diluted EPS* of $3.41 increased 13%, compared to adjusted second quarter 2025 net income*”
- Operating income: “Total operating expenses | 4,101 | 3,629 | 13 | 7,860 | 7,285 | 8 Operating income | 2,763 | 2,525 | 9 | 5,221 | 4,896 | 7”
- Operating ratio: “Reported operating ratio was 59.7% and adjusted operating ratio* was 59.2%, increasing 70 and 110 basis points, respectively.”
- Adjusted operating ratio: “Reported operating ratio was 59.7% and adjusted operating ratio* was 59.2%, increasing 70 and 110 basis points, respectively.”
- Cash provided by operating activities (year-to-date): “Cash provided by operating activities | 5,516 | 4,543 Investing activities Capital investments* | (1,810) | (1,842) Other - net | (254) | 3”
- Premium freight revenue: “Premium | 2,089 | 1,730 | 21 | 3,765 | 3,503 | 7 Total | $6,518 | $5,843 | 12% | $12,411 | $11,534 | 8%”
- Intermodal freight revenue: “Intermodal | 1,386 | 1,098 | 26 | 2,502 | 2,290 | 9 Premium | 2,089 | 1,730 | 21 | 3,765 | 3,503 | 7”
- Bulk freight revenue: “Coal & renewables | 448 | 469 | (4) | 934 | 885 | 6 Bulk | 2,043 | 1,901 | 7 | 4,069 | 3,737 | 9”
- Industrial freight revenue: “Energy & specialized markets | 724 | 665 | 9 | 1,387 | 1,298 | 7 Industrial | 2,386 | 2,212 | 8 | 4,577 | 4,294 | 7”
- Revenue carloads: “Premium | 1,063 | 1,026 | 4 | 2,038 | 2,095 | (3) Total | 2,163 | 2,114 | 2% | 4,246 | 4,211 | 1%”
- Freight car velocity (daily miles per car): “Freight car velocity was 231 daily miles per car, a 5% increase. •Average terminal dwell was 19.7 hours, a 7% improvement.”
- Average terminal dwell (hours): “Freight car velocity was 231 daily miles per car, a 5% increase. •Average terminal dwell was 19.7 hours, a 7% improvement.”
Copied from the press release ↗ and other documents in the SEC filing ↗. A figure is published only if its sentence is in the filing.
| From the filing | Q2 2026 | vs year ago | vs last quarter |
|---|---|---|---|
| Revenue | $6.9B | +11.5% | +10.4% |
| Operating income | $2.8B | +9.4% | +12.4% |
| Net income | $2.0B | +6.2% | +17.2% |
| Diluted EPS | $3.36 | +6.7% | +17.1% |
| Free cash flow | $2.2B | +57.7% | +46.6% |
| Operating margin | 40.3% | −0.7 pts | +0.8 pts |
Calculated by code from XBRL, not by the model.
Outlook
| Metric | Period | Outlook |
|---|---|---|
| Capital plan | 2026 | $3.3 billion |
Key takeaways
Underlying freight growth was 4% ex-fuel
Freight revenue increased 12%, but freight revenue excluding fuel surcharge grew 4%. Revenue carloads rose 2% while average revenue per car rose 9% to $3,014.
Intermodal and grain drove volume and revenue
Intermodal freight revenue rose 26% to $1,386 million and grain & grain products rose 15% to $1,106 million. Coal & renewables carloads fell 14%.
Operations hit record productivity levels
Workforce productivity was 1,176 car miles per employee, up 5%, and average terminal dwell improved 7% to 19.7 hours. Average employees fell 3% to 28,786.
Outlook raised to high-single-digit EPS growth
Management raised reported EPS growth to high-single digit and affirmed a $3.3 billion capital plan. Acquisition-related expense of $35 million reduced operating income in the quarter.
Charts
Fourth quarter worked out from the annual figure.
Data
| Q4 2024 | $6.1B * |
| Q1 2025 | $6.0B |
| Q2 2025 | $6.2B |
| Q3 2025 | $6.2B |
| Q4 2025 | $6.1B * |
| Q1 2026 | $6.2B |
| Q2 2026 | $6.9B |
| Q3 2026 | $7.2B |
Data
| Q1 2025 | $2.70 |
| Q2 2025 | $3.15 |
| Q3 2025 | $3.01 |
| Q1 2026 | $2.87 |
| Q2 2026 | $3.36 |
| Q3 2026 | $3.49 |
Fourth-quarter EPS appears once the press release is read; filings report it only for the full year.
Data
| Q4 2024 | 41.3% |
| Q1 2025 | 39.3% |
| Q2 2025 | 41.0% |
| Q3 2025 | 40.8% |
| Q4 2025 | 39.5% |
| Q1 2026 | 39.5% |
| Q2 2026 | 40.3% |
| Q3 2026 | 40.9% |
Data
| Q4 2024 | $1.7B |
| Q1 2025 | $1.3B |
| Q2 2025 | $1.4B |
| Q3 2025 | $1.6B |
| Q4 2025 | $1.2B |
| Q1 2026 | $1.5B |
| Q2 2026 | $2.2B |
| Q3 2026 | $1.8B |
Operating cash flow minus capital expenditure, from cash flow statements.
Questions
What were Union Pacific's headline Q2 2026 results?
Operating revenue was $6.9 billion, up 12%, with net income of $2.0 billion and diluted EPS of $3.36, up 7%. Adjusted diluted EPS was $3.41, up 13%.
What was Union Pacific's operating ratio in Q2 2026?
The reported operating ratio was 59.7% and the adjusted operating ratio was 59.2%, up 70 and 110 basis points from a year ago. Higher fuel prices cost 120 basis points.
Did Union Pacific change its 2026 outlook?
Yes. It raised reported EPS growth to high-single digit, consistent with its 3-year CAGR target of high-single to low-double digit through 2027. It affirmed a $3.3 billion capital plan and annual dividend increases.
Which businesses grew fastest in the quarter?
Intermodal freight revenue rose 26% to $1,386 million, and Premium revenue rose 21% to $2,089 million. Grain & grain products revenue rose 15% to $1,106 million, while Coal & renewables fell 4%.
How much cash did Union Pacific generate this year to date?
For the six months ended June 30, 2026, cash provided by operating activities was $5,516 million and free cash flow was $1,812 million, versus $1,105 million a year earlier.
Documents
SEC filing