Union Pacific (UNP) Q3 2026 Earnings Report
MX:UNP Q3 2026 EPS Results
- Actual EPS
- MXN 65.50
- Consensus EPS
- MXN 64.48
- Beat/Miss
- Beat by +MXN 1.02
- One Year Ago EPS
- MXN 57.15
MX:UNP Q3 2026 Revenue Results
- Actual Revenue
- MXN 133.54B
- Expected Revenue
- MXN 132.85B
- Beat/Miss
- Beat by +MXN 691.03M
- YoY Revenue Growth
- +15.26%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/22/2026
- Time
- Before Open
- Conference Call
- Thursday, October 22, 2026
MX:UNP Upcoming Earnings
Union Pacific's next earnings date is estimated for January 28, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
MX:UNP 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 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.
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.
- Record Third-Quarter Financial ResultsUnion 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.
- Strong Revenue and Volume GrowthOperating revenue increased 15% year over year to $7.2 billion. Freight revenue increased 15% to $6.8 billion on 6% volume growth, while freight revenue excluding fuel surcharge grew 6% to a record $5.6 billion.
- Core Operating Ratio ImprovementThe core operating ratio improved 110 basis points from last year when excluding fuel price impacts and merger costs. Reported operating ratio was 58.8%, and management reaffirmed its ability to continue improving the 2026 core operating ratio and leading the industry.
- Record Cash Generation and Shareholder ReturnsCash from operations increased 18% to $8.3 billion, while free cash flow totaled $2.4 billion after network reinvestment and a 3% increase in the third-quarter dividend. The dividend increase marked the 20th consecutive year of annual dividend growth.
- Strong Balance Sheet and Merger LiquidityUnion Pacific ended the quarter with $3.1 billion in cash and short-term investments and an adjusted debt-to-EBITDA ratio of 2.4x. The company said it will continue growing cash reserves in anticipation of closing the Norfolk Southern merger in the second half of 2027.
- Affirmed 2026 Earnings OutlookManagement affirmed its outlook for reported EPS growth in the high single-digit range versus 2025 reported EPS of $11.98. Year-to-date 2026 reported EPS growth was 9%, described as exactly in line with the outlook.
- Workforce Productivity and Cost EfficiencyUnion Pacific delivered its ninth consecutive quarter of record workforce productivity. Headcount declined 1% against 6% volume growth, workforce productivity improved 5%, and compensation and benefits expense increased 4% while cost per employee increased 5%.
- Improved Network Fluidity and ServiceFreight car velocity increased 1% to 228 miles per day, driven by a 2% improvement in terminal dwell. Terminal dwell remained below 20 hours for the fourth consecutive quarter. Intermodal Service Performance Index was 92% with intermodal volume growth of 11%, while Manifest Service Performance Index was 93% against record industrial carloads.
- Safety ImprovementsEmployee injury and derailment rates both improved against the three-year rolling average. Management described safety as the foundation of the company's operations and said the team continued personal-injury and derailment-prevention efforts while supporting 6% volume growth.
- Operational Efficiency and Asset ProductivityThe active locomotive fleet increased 2% while gross ton-miles increased 4%. Locomotive productivity was 140 gross ton-miles per horsepower day, matching last year's record third-quarter level. Fuel consumption rate decreased 2% to a new quarterly record, and train length increased 2% to nearly 10,000 feet.
- Industrial Segment GrowthIndustrial revenue increased 14% on 6% higher volume, with record industrial carloads and freight revenue excluding fuel. Growth occurred across all major commodity segments, including construction project wins in Louisiana and Texas, sustained domestic steel production, petroleum, non-metallic minerals, government, and waste markets.
- Intermodal MomentumDomestic Intermodal delivered its fifth consecutive record quarter for both volume and revenue, with volume growth of 13%. International Intermodal volume improved 8% year over year, driven by strong West Coast import volumes and business wins. Management expects International Intermodal volume to grow double digits in the fourth quarter, and Domestic Intermodal is on track for its third consecutive record volume year.
- Premium Revenue and Automotive WinsPremium revenue increased 21% on a 9% increase in volume and set records for freight revenue and freight revenue excluding fuel. In automotive, business wins offset continued market softness, with auto parts growth driven by current OEM relationships and over-the-road conversions with parts suppliers.
- Bulk Growth OpportunitiesBulk revenue increased 10% on flat volume. Grain and grain products benefited from strong export grain demand and continued growth in renewable fuels, ethanol, and feedstocks. Management also cited new facilities, including Bunge and 5B in Dalhart, Texas, and the upcoming CHS crush facility in Evansville, Wisconsin, as sources of further growth.
- Capital Investment for Growth2026 capital spending was updated to $3.5 billion as the company invests for growth and pulls forward some capital work planned for 2027. Investments include locomotive modernization, infrastructure projects, network capacity, and facilities supporting intermodal growth.
- Resource Buffer and Hiring CapacityManagement said it has sufficient resources to continue handling growth seamlessly while maintaining a surge buffer. More locomotives were placed into service, more than 300 employees were in training, and approximately 589 locomotives remained excess, including 289 stored locomotives.
- Merger Support and Regulatory ProgressThe Surface Transportation Board published a procedural schedule, and Union Pacific expects to report its first earnings as a merged company approximately a year from the call. Management said more than 500 customers have written letters of support, approximately 30 customers are prepared to help with integration, and the company has submitted what it described as the most extensive and transparent merger record ever.
- Expected Merger BenefitsManagement stated that the UP-Norfolk Southern combination is intended to strengthen the supply chain, lower transportation costs, provide faster and more seamless rail service, and eliminate handoffs for certain customers. The company said customers have responded positively after reviewing the proposed benefits.
- Technology and Continuous ImprovementUnion Pacific said it continues to use energy-management systems, Precision Train Builder, terminal locomotive-management technology, semi-autonomous operations, and technology for frontline decision-making. Management also highlighted Norfolk Southern's wayside rolling-stock inspection technology as an area that could be incorporated into the combined company.
- Long-Term Fuel Efficiency AdvantageManagement stated that rail is more fuel efficient than trucking and that higher fuel prices have helped Union Pacific win some business. Fuel-conservation efforts, longer trains, locomotive modernization, and operating fundamentals produced a 2% improvement in fuel consumption during the quarter.
MX:UNP Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 28, 2027 | 2026 (Q4) | 61.49- | 53.07 | ― | ― |
| Oct 22, 2026 | 2026 (Q3) | 64.4865.50 | 57.15 | 14.61% (+8.35) | |
| Jul 23, 2026 | 2026 (Q2) | 60.4563.27 | 56.22 | 12.54% (+7.05) | |
| Apr 23, 2026 | 2026 (Q1) | 53.1254.36 | 50.1 | 8.52% (+4.27) | |
| Jan 27, 2026 | 2025 (Q4) | 53.1253.07 | 53.99 | -1.72% (-0.93) | |
| Oct 23, 2025 | 2025 (Q3) | 55.5357.15 | 51.03 | 12.00% (+6.12) | |
| Jul 24, 2025 | 2025 (Q2) | 54.0556.22 | 50.84 | 10.58% (+5.38) | |
| Apr 24, 2025 | 2025 (Q1) | 50.7750.10 | 49.91 | 0.37% (+0.19) | |
| Jan 23, 2025 | 2024 (Q4) | 51.7153.99 | 50.28 | 7.38% (+3.71) | |
| Oct 24, 2024 | 2024 (Q3) | 51.5151.03 | 46.57 | 9.56% (+4.45) |
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