EarningsQ3 2026 Earnings Report
MX:NSC Q3 2026 EPS Results
Actual EPS$67.17
Consensus EPS$64.29
Beat/MissBeat by +$2.88
One Year Ago EPS$61.23
MX:NSC Q3 2026 Revenue Results
Actual Revenue$65.42B
Expected Revenue$64.55B
Beat/MissBeat by +$878.26M
YoY Revenue Growth+13.63%
Earnings Announcement Details
QuarterQ3 2026
Date10/22/2026
TimeBefore Open
Conference CallThursday, October 22, 2026
MX:NSC Upcoming Earnings
Norfolk Southern's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:NSC Q3 2026 Earnings Call
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Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
Earnings Call Sentiment|Positive
The call was broadly positive, supported by 14% revenue growth, a 6% increase in revenue less fuel to an all-time record, 7% operating-income growth, 10% growth in net income and earnings per share, improved safety and service metrics, record productivity, and strong demand across major business groups. The company also reported significant productivity progress, available capacity in core products, and increased investment to support growth. Offsetting concerns included higher fuel and inflationary costs, a 17% increase in expenses, localized service and weather disruptions, utility coal pressure, intensified competition, labor constraints, and the possibility that some truck-to-rail conversions may reverse when fuel prices decline.Company Guidance
Strong Third-Quarter Financial Performance
Adjusted operating ratio was 65.4% and adjusted earnings per share was $3.62, excluding $42 million of merger-related expenses and $28 million of net costs related to the Eastern Ohio incident. Operating income increased 7%, while net income and earnings per share each increased 10% year over year.
Record Revenue Less Fuel and Broad-Based Growth
Overall revenue increased 14%, inclusive of fuel surcharge, while revenue less fuel increased 6% to an all-time record. Volume grew 3% in each of the company’s business verticals, and RPU less fuel increased 3%.
Merchandise and Intermodal Strength
Merchandise volume increased 3%, with revenue less fuel rising 5% to another record, driven by strength in metals and construction and strong energy demand in chemicals. Intermodal volume increased 3%, while intermodal revenue less fuel increased 7%, supported by positive mix and pricing; intermodal RPU less fuel increased 4%.
Coal Volume and Pricing Growth
Coal volume increased 3%, largely due to higher export volumes, including a new customer announced earlier in the year. Coal RPU less fuel increased 2%, primarily due to favorable seaborne pricing.
Improved Network Operations
The company delivered sequential improvements in originations, terminal dwell, velocity, and schedule performance. On-time origin performance increased by 12 percentage points, and network velocity increased from the second quarter despite higher loads and disruptive events.
Record Productivity and Cost-Savings Progress
Workforce productivity reached a third-quarter record. Norfolk Southern eliminated 95 crew starts per week and took 200 cars offline per day, enabling the network to accommodate 3% carload growth in the quarter. The company is on track to deliver at least $650 million in cumulative cost savings.
Higher Volumes Absorbed Through Existing Infrastructure
The network operated 5% more gross ton miles than in the same quarter of 2025, while train length and train weight each increased 4%. The company absorbed this growth almost entirely through existing infrastructure and handled 3% more shipments during the quarter.
Safety Performance Reached Historical Best
The preliminary year-to-date FRA personal injury index was 1.08, while the train accident rate was 1.74, described as a historical best for Norfolk Southern. Management said accident performance continues to show step-function improvement.
Weather Disruptions Managed Without Derailing Progress
Despite significant August weather across the north, including downed trees, washouts, and widespread power outages, the team restored infrastructure, activated reroutes, repositioned resources, and delivered meaningful sequential and year-over-year operating improvements.
Capacity Available in Core Products
Management said the company has capacity in regularly scheduled merchandise and intermodal products, with much of the quarter’s growth coming from filling existing trains rather than adding a significant number of train starts. Norfolk Southern also has 420 locomotives currently in storage for capability as volume increases.
Targeted Hiring and Network Improvements
The company has begun localized hiring, is actively recruiting and training new transportation and engineering employees, and is making targeted train-plan consolidations and terminal improvements to support growth and network resilience.
Digital and Automation Investments
Digital investments are providing greater automation, shipment visibility, and ease of doing business. The company is streamlining rate requests through a single platform and combining real-time network data, historical trends, machine learning, and superintelligence to improve shipment information. Norfolk Southern is also pursuing autonomy opportunities in intermodal terminals and automation of yard switches.
Terminal Expansion and Record Lift Activity
The company is expanding and improving several terminals, including locations in Chicago and Harrisburg. Five intermodal ramps are expected to reach quarterly lift records and 10 are expected to reach annual lift records.
Positive Industrial and Truck-to-Rail Demand Environment
Management cited a tightening truck market, nine consecutive months of manufacturing expansion, continued new orders, and a strong industrial development pipeline. Norfolk Southern expects opportunities for highway-to-rail conversions across markets including forest products, consumer products, and intermodal.
Industrial Development Pipeline Remains Healthy
More than 50 industrial projects have moved into the design and construction phase, which management views as the point at which an opportunity becomes likely to be executed rather than theoretical. Activity has returned to a normalized run rate after accelerating in the first half of the year, and management described that run rate as sustainable and healthy.
Positive Near-Term Outlook for Coal and Intermodal
The outlook for coal was positive for the remainder of 2026, led primarily by exports and supported by favorable utility-market conditions. Management also expects resilient consumer demand to support domestic and premium intermodal segments as new orders increase and retail sales show modest growth.
Increased Capital Investment to Support Growth
The company increased its 2026 capital expenditure outlook to roughly $2.1 billion from $1.9 billion originally. Management said the incremental reinvestment is intended to capture growth opportunities and enhance network resilience and efficiencies.
Merger Proposal Positioned as a Long-Term Growth Initiative
Management said the proposed Union Pacific-Norfolk Southern combination is intended to create a unified network, reduce handoffs, improve network fluidity and service consistency, expand market access, support highway-to-rail conversion, and create what it described as a durable service offering in transcontinental lanes.
Best-Ever Domestic Non-Premium Intermodal Third Quarter
Management said the company achieved its best domestic non-premium third quarter in history for volume, despite the business environment a year earlier and ongoing changes involving J.B. Hunt volume.
MX:NSC Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed