# Union Pacific (UNP) Q2 2026 earnings

Results filed 2026-07-23 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/unp/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/100885/000010088526000249/0000100885-26-000249-index.htm
> 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

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Operating revenue | $6.9 billion | up 12% from a year ago | GAAP |
| Net income | $2.0 billion | up 6% from a year ago | GAAP |
| Diluted EPS | $3.36 | up 7% from a year ago | GAAP |
| Adjusted diluted EPS | $3.41 | up 13% from a year ago | non-GAAP |
| Operating income | 2,763 | up 9% from a year ago | GAAP |
| Operating ratio | 59.7% | up 70 basis points from a year ago | GAAP |
| Adjusted operating ratio | 59.2% | up 110 basis points from a year ago | non-GAAP |
| Cash provided by operating activities (year-to-date) | 5,516 |  | GAAP |
| Free cash flow (year-to-date) | $1,812 |  | non-GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Premium freight revenue | 2,089 | up 21% |
| Intermodal freight revenue | 1,386 | up 26% |
| Bulk freight revenue | 2,043 | up 7% |
| Industrial freight revenue | 2,386 | up 8% |
| Revenue carloads (thousands) | 2,163 | up 2% |
| Freight car velocity (daily miles per car) | 231 | up 5% |
| Average terminal dwell (hours) | 19.7 hours | 7% improvement |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Capital plan | 2026 | $3.3 billion |

## Key takeaways

1. **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.
2. **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%.
3. **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.
4. **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.

## 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.