Raising 2026 EPS outlook to high single-digit growth
Union Pacific reported record Q2 2026 results with revenue up 12% and EPS of $3.36. Management raised full-year EPS guidance to high single-digit growth, citing strong volume, pricing, and operational efficiency. Key cross-company developments included a merger settlement with Canadian National, which grants reciprocal trackage rights for Mexico and Chicago access, and continued progress on the Norfolk Southern merger. Domestic intermodal set another record, and the network remains fluid with buffer capacity. Record Q2 2026: revenue $6.9B (+12%), EPS $3.36, operating ratio 59.2%.
Buzzberg readRaising 2026 EPS outlook to high single-digit growthUnion Pacific reported record Q2 2026 results with revenue up 12% and EPS of $3.36. Management raised full-year EPS guidance to high single-digit growth, citing strong volume, pricing, and operational efficiency. Key cross-company developments included a merger settlement with Canadian National, which grants reciprocal trackage rights for Mexico and Chicago access, and continued progress on the Norfolk Southern merger. Domestic intermodal set another record, and the network remains fluid with buffer capacity. Record Q2 2026: revenue $6.9B (+12%), EPS $3.36, operating ratio 59.2%.Read full analysisCollapse analysis
Union Pacific reported record Q2 2026 results with revenue up 12% and EPS of $3.36. Management raised full-year EPS guidance to high single-digit growth, citing strong volume, pricing, and operational efficiency. Key cross-company developments included a merger settlement with Canadian National, which grants reciprocal trackage rights for Mexico and Chicago access, and continued progress on the Norfolk Southern merger. Domestic intermodal set another record, and the network remains fluid with buffer capacity. Record Q2 2026: revenue $6.9B (+12%), EPS $3.36, operating ratio 59.2%.
Full-year EPS guidance raised to high single-digit growth, driven by volume and productivity gains.
Reached settlement agreement with CN: CN gains Mexico access via UNP; UNP gains Chicago east-west access.
Norfolk Southern merger application accepted by STB; supplemental info to be filed Monday with expanded gateway pricing commitments.
Revenue$6.864B
+10% QoQ
EPS$3.41
+16% QoQ
Gross margin45.53%
reported
Op margin40.25%
reported
What changed this quarter
01
Guidance
Raising 2026 EPS outlook to high single-digit growth
Guidance tone
02
Other
Merger settlement agreement with Canadian National
Record Q2 2026: revenue $6.9B (+12%), EPS $3.36, operating ratio 59.2%.
03
Demand
Domestic Intermodal fourth consecutive record quarter
Management expressed strong confidence driven by record financial results, raised EPS outlook, and progress on the Norfolk Southern merger, with a positive tone throughout.
04
Risk
Fuel expense grew 63% on 60% higher fuel price
Reached settlement agreement with CN: CN gains Mexico access via UNP; UNP gains Chicago east-west access.
Demand & capex
Demand
Bookings & conversion
Domestic Intermodal fourth consecutive record quarter. Management expressed strong confidence driven by record financial results, raised EPS outlook, and progress on the Norfolk Southern merger, with a positive tone throughout.
Capex
Investment and capacity
Management highlighted continued strategic capacity investments in the Houston Complex, Pacific Northwest Siding Extensions, and Sunset Double Track projects to support growth.
Tone · upbeat
Management expressed strong confidence driven by record financial results, raised EPS outlook, and progress on the Norfolk Southern merger, with a positive tone throughout.
Supply-chain alpha
A1
CN settlement grants CN trackage rights over UNP's Memphis-Eagle Pass line for Mexico access, and UNP gains access to CN's Chicago east-west routes, potentially unlocking efficiency gains and competitive shifts.
“It also allows Canadian National to come over between St. Louis, just east of St. Louis to Kansas City and give optionality to the customers... we wanted better access through Chicago, east-west.”
UNP's buffer resources enabled quick response to double-digit domestic intermodal growth without service degradation, highlighting latent capacity and pricing power.
CN and UNP reached a settlement agreement that grants CN access to Mexico via UNP's line and UNP access to CN's Chicago east-west routes, reducing regulatory friction and opening growth opportunities.
“Also yesterday, we announced that we reached a merger settlement agreement with the railroad I used to work for, Canadian National.”
… board. As you'll see when you read it, we've carefully answered each of the board's questions. We've also taken the opportunity to further improve the competitive nature of our merger through an expansion of committed gateway pricing among several other voluntary commitments. This is in addition to the merger benefits of seamless single line service, better reliability, lower costs, and greater competition against trucks and other railroads. Also yesterday, we announced that we reached a merger settlement agreement with the railroad I used to work for, Canadian National. I said from day one that our merger will create a stronger railroad industry that delivers better service for customers. Our agreement with CN, Canadian National, reinforces those commitments. Our merger is unprecedented and deserves a careful review. We've done our homework. Now versus almost one year ago when we first announced our plans to merge, we have even more conviction that our transaction is in the public interest and will deliver benefits for our stakeholders, especially our customers. The case for our Transcontinental Railroad is clear and we're ready to go. With that, Rob, we're ready to take …
Union Pacific is pursuing a merger with Norfolk Southern; progress is being made with regulatory approvals and voluntary commitments, signaling long-term strategic alignment.
“I'd like to quickly summarize what you've heard and provide an update on our merger with Norfolk Southern.”
Thank you, Eric, Kenny, Jennifer. Why don't we turn to slide 16. Before we get to your questions, I'd like to quickly summarize what you've heard and provide an update on our merger with Norfolk Southern. As a team walked through, we had a very strong second quarter as volumes, pricing, and operational efficiency drove record financial results. The network continues to be very fluid and our buffer of resources is supporting broad-based growth. Looking ahead, we are prepared to meet increased customer demand with best-in-class safety, service, and operational excellence. For our 2026 outlook, we are raising to full-year reported EPS growth in the high single-digit range. As to the status of our merger with Norfolk Southern, first, we met a very important milestone when the surface transportation board accepted our application as complete on May 28th. And on Monday, we will meet another important milestone when we complete the supplemental information asked from the board. As you'll see when you read it, we've carefully answered each of the board's questions. We've also taken the opportunity to further improve the competitive nature of our merger through an expansion of committed …
CN settlement grants CN trackage rights over UNP's Memphis-Eagle Pass line for Mexico access, and UNP gains access to CN's Chicago east-west routes, potentially unlocking efficiency gains and competitive shifts.
UNP's buffer resources enabled quick response to double-digit domestic intermodal growth without service degradation, highlighting latent capacity and pricing power.