Union Pacific (0R2E) AI Stock Analysis

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Union Pacific

(LSE:0R2E)

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Positive Factors

Strong profitability and cash generationConsistently high profitability and positive free cash flow demonstrate a durable cash-generating business model. This supports network reinvestment, dividends, and strategic flexibility while providing financial capacity to manage cyclical freight demand and fund long-term operating improvements.

Negative Factors

Fuel-cost exposureHigher diesel prices can pressure operating margins and cash flow when fuel-cost increases are not fully offset by surcharges or pricing. Management expects a greater near-term impact, showing that fuel remains a material earnings sensitivity despite efficiency initiatives.

Union Pacific (0R2E) vs. iShares MSCI United Kingdom ETF (EWC)

Market Cap: $177.00B
Dividend Yield: 1.92%
Average Volume (3M): 1,553
Price to Earnings (P/E): 23.2
Beta (1Y): 0.55
Revenue Growth: 7.40%
EPS Growth: 8.86%
Country: UK
Employees: 28,716
Sector: Industrials
Sector Strength: 63
Industry: Railroads

Union Pacific Business Overview & Revenue Model

Company Description

Union Pacific Corporation, a prominent American railway enterprise, conducts its primary operations through its subsidiary, Union Pacific Railroad Company. The company provides extensive freight transportation services for a wide array of commodities...

Union Pacific Earnings Call Summary

Earnings Call Date:Oct 21, 2026(Q3-2026)|% Change Since:1.15%|Next Earnings Date:Jan 27, 2027

Earnings Call SentimentPositive

The call was strongly positive, supported by record financial results, 6% volume growth, 15% revenue growth, improved safety and operating metrics, record productivity, strong intermodal and industrial demand, and continued confidence in the Norfolk Southern merger. The main challenges were higher fuel costs, coal and wheat weakness, selected market softness, seasonal fourth-quarter pressure, and opposition to the merger, but management reaffirmed its earnings outlook and operating improvement plans.

Positive Updates

Record Third-Quarter Financial Results

Union Pacific reported record third-quarter financial results, including net income of $2.1 billion, adjusted earnings per share of $3.53, and reported earnings per share of $3.49. Adjusted EPS grew 15% year over year.

Negative Updates

Higher Fuel Prices Pressured Results

Higher fuel prices were a significant cost driver. Fuel expense increased 69% on a 64% increase in average fuel price and 4% higher gross ton-miles. The average price per gallon increased from $2.56 to $4.21 and added 140 basis points to the operating ratio.

Company Guidance

Union Pacific affirmed its outlook of reported EPS growth in the high single-digit range versus 2025’s reported EPS of $11.98, which included $0.30 from a fourth quarter land sale, and expects to continue improving its core operating ratio in 2026 and leading the industry; 2026 capital spend is updated to $3.5 billion, while fourth-quarter fuel prices are currently expected to average around $4.85 per gallon versus $4.21 in the third quarter, which had about 140 basis point drag. International Intermodal volume is expected to grow double digits in the fourth quarter, Domestic Intermodal is on track to deliver its third consecutive record volume year, and automotive business wins are expected to continue to offset market weakness. The company expects continued strong growth in the fourth quarter but, on an absolute basis, probably a little bit of a seasonal step back in operating ratio, while core operating ratio improvement is expected to continue; it also expects a better environment for stronger pricing toward the end of the year and the first several months of 2027.

Union Pacific Risk Analysis

Union Pacific disclosed 31 risk factors in its most recent earnings report. Union Pacific reported the most risks in the "Finance & Corporate" category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added

0 New Risks

Union Pacific Peers Comparison

Overall Rating

UnderperformOutperform

Sector (63)

Financial Indicators

GB:0R2E against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
NSC	78Outperform	$77.30B	27.57	16.69%	1.64%	5.99%	-9.02%
CSX	74Outperform	$95.95B	26.34	25.95%	1.08%	5.80%	25.25%
ODFL	74Outperform	$37.20B	30.62	25.92%	0.67%	3.80%	11.90%
Sector *	63Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CHRW	62Neutral	$15.52B	22.75	39.59%	1.96%	10.38%	12.97%
JBHT	61Neutral	$21.17B	30.76	18.71%	0.82%	10.59%	23.25%

* Industrials Sector Average

Performance Comparison

GB:0R2E and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
GB:0R2E	Union Pacific Corporation	292.16	72.91	33.25%
CHRW	Ch Robinson Worldwide	125.33	-24.11	-16.13%
CSX	CSX Corporation	49.12	14.45	41.66%
JBHT	JB Hunt Transport Services	217.55	50.35	30.11%
NSC	Norfolk Southern Corp	319.94	37.80	13.40%
ODFL	Old Dominion Freight Line	164.92	28.01	20.46%

Glossary

BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.

Union Pacific AI Stock Analysis