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California State Teachers Retirement System lifted its position in shares of Norfolk Southern Corporation (NYSE:NSC – Free Report) by 34,371.9% in the second quarter, according to the company in its most recent disclosure with the Securities and Exchange Commission (SEC). The institutional investor owned 107,455,765 shares of the railroad operator’s stock after buying an additional 107,144,045 shares during the quarter. California State Teachers Retirement System owned approximately 47.84% of Norfolk Southern worth $33,804,509,000 at the end of the most recent quarter.

Other institutional investors have also modified their holdings of the company. BlackRock Inc. purchased a new stake in Norfolk Southern in the 2nd quarter worth approximately $5,033,549,000. Norges Bank acquired a new stake in shares of Norfolk Southern during the fourth quarter worth $1,084,701,000. Bank of America Corp DE purchased a new stake in shares of Norfolk Southern in the second quarter valued at $978,977,000. Pentwater Capital Management LP acquired a new position in Norfolk Southern in the third quarter valued at $826,128,000. Finally, Legal & General Group Plc purchased a new position in Norfolk Southern during the second quarter worth about $503,093,000. Institutional investors and hedge funds own 75.10% of the company’s stock.

Wall Street Analyst Weigh In Several analysts have commented on NSC shares. BMO Capital Markets lifted their price target on Norfolk Southern from $310.00 to $355.00 and gave the company a “market perform” rating in a report on Monday, July 27th. Citigroup boosted their price objective on shares of Norfolk Southern from $351.00 to $376.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Benchmark reaffirmed a “hold” rating on shares of Norfolk Southern in a research report on Friday, July 24th. Wells Fargo & Company boosted their price target on Norfolk Southern from $365.00 to $385.00 and gave the company an “overweight” rating in a research report on Friday, July 24th. Finally, Weiss Ratings upgraded Norfolk Southern from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, July 24th. Seven research analysts have rated the stock with a Buy rating and fifteen have given a Hold rating to the stock. Based on data from MarketBeat.com, the company currently has a consensus rating of “Hold” and an average price target of $348.00.

Get Our Latest Stock Report on NSC Norfolk Southern Trading Down 0.1% NYSE NSC opened at $329.07 on Tuesday. The stock has a market cap of $73.91 billion, a P/E ratio of 28.08, a PEG ratio of 4.89 and a beta of 1.27. The company’s fifty day simple moving average is $335.69 and its 200-day simple moving average is $315.76. The company has a current ratio of 0.83, a quick ratio of 0.73 and a debt-to-equity ratio of 0.98. Norfolk Southern Corporation has a 52 week low of $268.23 and a 52 week high of $358.60.

Norfolk Southern (NYSE:NSC – Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share for the quarter, beating analysts’ consensus estimates of $3.32 by $0.20. Norfolk Southern had a net margin of 21.02% and a return on equity of 18.21%. The business had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. During the same period last year, the business earned $3.29 EPS. The business’s revenue was up 12.5% on a year-over-year basis. Equities research analysts predict that Norfolk Southern Corporation will post 12.87 EPS for the current fiscal year.

Norfolk Southern Dividend Announcement The firm also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Friday, August 7th were paid a dividend of $1.35 per share. The ex-dividend date was Friday, August 7th. This represents a $5.40 annualized dividend and a dividend yield of 1.6%. Norfolk Southern’s dividend payout ratio (DPR) is currently 46.08%.

Norfolk Southern Profile (Free Report)

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

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OMAHA, Neb. & ATLANTA--(BUSINESS WIRE)--Union Pacific and Norfolk Southern demonstrated today that opponents' prima facie challenges should be squarely rejected. In their response filing, the railroads emphasized that their application, which includes extensive evidence and represents months of work, easily satisfies the Surface Transportation Board's (STB) threshold requirements. It gives the STB everything it needs to begin its full review and provides overwhelming confirmation that the propos.

Bank of New York Mellon Corp bought a new stake in shares of Norfolk Southern Corporation (NYSE:NSC – Free Report) during the 2nd quarter, according to its most recent Form 13F filing with the SEC. The fund bought 1,158,377 shares of the railroad operator’s stock, valued at approximately $364,414,000. Bank of New York Mellon Corp owned 0.52% of Norfolk Southern as of its most recent SEC filing.

Other hedge funds and other institutional investors have also modified their holdings of the company. JPL Wealth Management LLC acquired a new position in Norfolk Southern in the 3rd quarter valued at $25,000. BNP Paribas acquired a new position in Norfolk Southern in the second quarter worth about $26,000. Meeder Asset Management Inc. lifted its holdings in shares of Norfolk Southern by 239.3% during the fourth quarter. Meeder Asset Management Inc. now owns 95 shares of the railroad operator’s stock valued at $27,000 after acquiring an additional 67 shares during the period. Financial Life Planners acquired a new position in shares of Norfolk Southern in the 1st quarter worth approximately $33,000. Finally, Bayban acquired a new position in Norfolk Southern during the 4th quarter worth about $34,000. 75.10% of the stock is currently owned by hedge funds and other institutional investors.

Norfolk Southern Price Performance Norfolk Southern stock opened at $350.77 on Friday. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.83 and a quick ratio of 0.73. The firm has a market capitalization of $78.79 billion, a P/E ratio of 29.93, a PEG ratio of 6.14 and a beta of 1.27. Norfolk Southern Corporation has a one year low of $268.23 and a one year high of $358.60. The business has a fifty day moving average price of $328.23 and a 200-day moving average price of $313.31.

Norfolk Southern (NYSE:NSC – Get Free Report) last posted its quarterly earnings data on Thursday, July 23rd. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.20. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.The company had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. During the same quarter last year, the company earned $3.29 earnings per share. The firm’s quarterly revenue was up 12.5% on a year-over-year basis. As a group, equities research analysts forecast that Norfolk Southern Corporation will post 12.66 EPS for the current year. Norfolk Southern Announces Dividend The company also recently disclosed a quarterly dividend, which was paid on Thursday, August 20th. Stockholders of record on Friday, August 7th were paid a dividend of $1.35 per share. This represents a $5.40 annualized dividend and a dividend yield of 1.5%. The ex-dividend date of this dividend was Friday, August 7th. Norfolk Southern’s dividend payout ratio is 46.08%.

Analysts Set New Price Targets Several research firms have weighed in on NSC. Benchmark reissued a “hold” rating on shares of Norfolk Southern in a research note on Friday, July 24th. Robert W. Baird boosted their target price on shares of Norfolk Southern from $360.00 to $377.00 and gave the stock a “neutral” rating in a report on Monday, July 27th. Wall Street Zen raised shares of Norfolk Southern from a “sell” rating to a “hold” rating in a research report on Saturday, May 2nd. Weiss Ratings upgraded shares of Norfolk Southern from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, July 24th. Finally, Stephens upgraded shares of Norfolk Southern to a “hold” rating in a research report on Wednesday, July 8th. Seven investment analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company. According to MarketBeat, the stock presently has an average rating of “Hold” and an average target price of $348.00.

Check Out Our Latest Analysis on NSC

Norfolk Southern Company Profile (Free Report)

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

Further Reading Five stocks we like better than Norfolk Southern Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates?

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Advisors Capital Management LLC acquired a new stake in Norfolk Southern Corporation (NYSE:NSC – Free Report) in the second quarter, according to the company in its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund acquired 2,195 shares of the railroad operator’s stock, valued at approximately $691,000.

Several other institutional investors and hedge funds have also modified their holdings of NSC. Cannon Wealth Management Services LLC purchased a new position in shares of Norfolk Southern during the 2nd quarter worth about $277,000. MJP Associates Inc. ADV purchased a new stake in Norfolk Southern in the second quarter valued at approximately $326,000. PCM Encore LLC acquired a new position in shares of Norfolk Southern in the 2nd quarter valued at $209,000. Vise Technologies Inc. acquired a new position in shares of Norfolk Southern in the 2nd quarter valued at $3,002,000. Finally, XY Capital Ltd purchased a new stake in shares of Norfolk Southern during the 2nd quarter valued at $2,517,000. Hedge funds and other institutional investors own 75.10% of the company’s stock.

Analysts Set New Price Targets Several equities analysts have recently weighed in on NSC shares. Robert W. Baird lifted their price objective on Norfolk Southern from $360.00 to $377.00 and gave the company a “neutral” rating in a research note on Monday, July 27th. Benchmark restated a “hold” rating on shares of Norfolk Southern in a report on Friday, July 24th. Barclays lifted their price target on shares of Norfolk Southern from $360.00 to $400.00 and gave the company an “overweight” rating in a research report on Friday, July 24th. Wells Fargo & Company increased their price objective on shares of Norfolk Southern from $365.00 to $385.00 and gave the stock an “overweight” rating in a research report on Friday, July 24th. Finally, JPMorgan Chase & Co. raised their target price on shares of Norfolk Southern from $316.00 to $338.00 and gave the company a “neutral” rating in a research note on Friday, July 24th. Seven equities research analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the company’s stock. According to data from MarketBeat.com, Norfolk Southern has an average rating of “Hold” and an average price target of $348.00.

Read Our Latest Stock Report on Norfolk Southern Norfolk Southern Stock Up 1.2% NSC stock opened at $350.77 on Friday. The firm has a market cap of $78.79 billion, a price-to-earnings ratio of 29.93, a PEG ratio of 6.14 and a beta of 1.27. Norfolk Southern Corporation has a 1-year low of $268.23 and a 1-year high of $358.60. The firm has a fifty day moving average price of $328.23 and a two-hundred day moving average price of $313.31. The company has a debt-to-equity ratio of 0.98, a current ratio of 0.83 and a quick ratio of 0.73.

Norfolk Southern (NYSE:NSC – Get Free Report) last posted its earnings results on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, beating the consensus estimate of $3.32 by $0.20. The company had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.The business’s revenue was up 12.5% compared to the same quarter last year. During the same period in the prior year, the company earned $3.29 earnings per share. Research analysts predict that Norfolk Southern Corporation will post 12.66 EPS for the current year.

Norfolk Southern Announces Dividend The business also recently announced a quarterly dividend, which was paid on Thursday, August 20th. Shareholders of record on Friday, August 7th were paid a $1.35 dividend. This represents a $5.40 dividend on an annualized basis and a yield of 1.5%. The ex-dividend date was Friday, August 7th. Norfolk Southern’s dividend payout ratio (DPR) is presently 46.08%.

(Free Report)

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

Further Reading Five stocks we like better than Norfolk Southern Blueprint for a Boom: SEC Clears the Crypto Runway Ross Stores Just Flipped the Off-Price Retail Story After TJX’s Marmaxx Miss Advance Auto Parts Plunged, But Its Turnaround Is Still Working Is Palo Alto Networks Priced for Perfection Again as AI Security Demand Accelerates?

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The U.S. Surface Transportation Board on Tuesday said it has resumed consideration of ​Union Pacific's (UNP.N) proposed merger with Norfolk ‌Southern (NSC.N), while stressing that the move does not signal approval of the $85-billion deal.

The board removed ​the proceeding from abeyance after determining ​that supplemental information submitted by the ⁠railroads was sufficient to resume the ​review process.

The deal, announced in July last ​year, would create the first coast-to-coast freight railroad in the United States.

The decision lays out a ​timeline for public comments on the ​proposed merger, giving stakeholders and regulators time to ‌review ⁠its potential impact.

STB's decision also directs the companies to refile, within 10 days, any workpapers that had been filtered or ​screened, allowing ​the board ⁠to review the full dataset.

The board denied the companies' request ​for an expedited proceeding related ​to ⁠their proposed divestiture of control of the Terminal Railroad Association of St. Louis, ⁠and ​said unfiltered workpapers must ​be filed by August 28.

Empowered Funds LLC grew its stake in shares of Norfolk Southern Corporation (NYSE: NSC) by 91.7% during the undefined quarter, according to its most recent 13F filing with the Securities and Exchange Commission. The fund owned 25,230 shares of the railroad operator's stock after purchasing an additional 12,071 shares during the quarter. Empowered

© DSCimage / iStock via Getty Images

The smart money is split on Norfolk Southern (NYSE:NSC | NSC Price Prediction), and the divergence matters. Sell-side analysts have settled into a cautious Hold while event-driven hedge funds have loaded up on option structures around the pending approximately $85 billion acquisition by Union Pacific (NYSE:UNP), a footprint characteristic of merger arbitrage rather than directional conviction.

The gap between those two camps is the story for retail investors weighing the name today.

The Analyst Signal: Hold With Raised Targets Coverage on Norfolk Southern skews neutral, with roughly three-quarters of analysts parked on the sidelines. Recent sell-side notes from firms including BMO, J.P. Morgan, and Benchmark have raised price targets while keeping ratings neutral, the classic posture for a stock whose fate is tied to a regulator-dependent transaction.

The consensus 12-month target is $365.28, compared to a last trade of $334.36 on August 7, 2026. That is a modest premium to spot and well within the recent trading band, given a 52-week high of $358.60 and a 50-day moving average of $321.89. Composite sentiment scored 60.24 (bullish direction, low confidence), a lukewarm reading that reflects analyst caution.

The Institutional Footprint: Arb Desks Engaged Institutional ownership stands at 78.7%, and the tracked portion is dominated by multi-strategy funds. Per 13F filings, the tracked holders include Millennium Management, D.E. Shaw, Balyasny, Two Sigma, and Point72, alongside Third Point, which trimmed its position. Several of these funds hold common stock paired with both puts and calls, a hedged, event-driven signature.

Options flow reinforces the arb read. The full-chain put/call ratio is 1.78, with the August 21, 2026, expiration at 19.5 and the December 18, 2026, line at 0.57. Elevated near-term put activity is consistent with deal hedging. Insider activity leans the other way, as recent insider transactions show net buying.

Two data-integrity guardrails apply. The 13F snapshot reflects positions as of March 31, 2026, and is not real-time. It also captures only tracked institutions, which skew toward hedge funds and quant strategies, so large index and long-only holders are absent from that segment.

The Gap: Neutral Ratings, Engaged Arbitrage Norfolk Southern is up 15.8% year to date and 19.2% over one year. It is trading at a trailing P/E of 28 and a forward P/E of 26. Union Pacific (NYSE: UNP), the acquirer, carries a $174.1 billion market cap and trades at a trailing P/E of 24, with its own analyst target at $329.25 against a last price of $293.13.

The gap between Wall Street’s Hold consensus and the arb desks’ engagement reflects a disagreement on timing. Analysts see a fundamentally healthy operator whose share price already reflects most of the good news. Arbitrage funds see a bounded outcome: deal closes around mid-2027 after Surface Transportation Board review, with opposition from BNSF, CPKC, and some shippers, and structured option positions to isolate that binary.

The Takeaway For a retail investor, the analyst-versus-arb divergence is a warning that Norfolk Southern’s next leg is a regulatory event. The Hold consensus is right on the fundamentals at this price. The hedge fund positioning is right that the payoff distribution is now driven by STB approval odds. Retail buyers entering here are underwriting a long-dated regulatory outcome without the paired option structures that arb desks use to define risk.

Contact [email protected] for any questions or corrections.

Posted by Defense World Staff on Aug 3rd, 2026

Farmers National Bank trimmed its position in Norfolk Southern Corporation (NYSE:NSC – Free Report) by 36.1% during the first quarter, according to its most recent disclosure with the Securities and Exchange Commission (SEC). The fund owned 16,744 shares of the railroad operator’s stock after selling 9,439 shares during the quarter. Norfolk Southern accounts for 1.1% of Farmers National Bank’s holdings, making the stock its 23rd largest holding. Farmers National Bank’s holdings in Norfolk Southern were worth $4,806,000 at the end of the most recent quarter.

Several other institutional investors have also added to or reduced their stakes in NSC. Parallel Advisors LLC increased its stake in shares of Norfolk Southern by 1.9% in the 1st quarter. Parallel Advisors LLC now owns 4,279 shares of the railroad operator’s stock valued at $1,228,000 after purchasing an additional 79 shares during the last quarter. Blue Edge Capital LLC lifted its position in shares of Norfolk Southern by 99.3% during the 1st quarter. Blue Edge Capital LLC now owns 2,989 shares of the railroad operator’s stock worth $858,000 after buying an additional 1,489 shares during the last quarter. Financial Solutions Advisory Group Inc. bought a new stake in shares of Norfolk Southern during the 1st quarter worth $344,000. Keel Point LLC boosted its stake in Norfolk Southern by 2.4% in the first quarter. Keel Point LLC now owns 7,557 shares of the railroad operator’s stock valued at $2,169,000 after buying an additional 176 shares in the last quarter. Finally, Carlson Capital L.P. boosted its stake in Norfolk Southern by 52.6% in the first quarter. Carlson Capital L.P. now owns 8,700 shares of the railroad operator’s stock valued at $2,497,000 after buying an additional 3,000 shares in the last quarter. 75.10% of the stock is currently owned by institutional investors and hedge funds.

Norfolk Southern Trading Up 0.1% Shares of NSC stock opened at $335.89 on Monday. Norfolk Southern Corporation has a twelve month low of $268.23 and a twelve month high of $358.60. The stock’s fifty day simple moving average is $319.64 and its 200 day simple moving average is $308.03. The company has a quick ratio of 0.73, a current ratio of 0.83 and a debt-to-equity ratio of 0.98. The firm has a market capitalization of $75.45 billion, a P/E ratio of 28.66, a P/E/G ratio of 5.97 and a beta of 1.27.

Norfolk Southern (NYSE:NSC – Get Free Report) last posted its earnings results on Thursday, July 23rd. The railroad operator reported $3.52 EPS for the quarter, beating the consensus estimate of $3.32 by $0.20. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.The firm had revenue of $3.46 billion during the quarter, compared to the consensus estimate of $3.38 billion. During the same period last year, the company earned $3.29 earnings per share. The business’s quarterly revenue was up 12.5% on a year-over-year basis. As a group, sell-side analysts predict that Norfolk Southern Corporation will post 12.6 EPS for the current fiscal year.

Norfolk Southern Announces Dividend The company also recently disclosed a quarterly dividend, which will be paid on Thursday, August 20th. Stockholders of record on Friday, August 7th will be paid a $1.35 dividend. The ex-dividend date of this dividend is Friday, August 7th. This represents a $5.40 annualized dividend and a dividend yield of 1.6%. Norfolk Southern’s dividend payout ratio is currently 46.08%.

Analyst Ratings Changes Several brokerages have commented on NSC. Rothschild & Co Redburn boosted their target price on Norfolk Southern from $308.00 to $315.00 and gave the stock a “neutral” rating in a research note on Wednesday, April 29th. Wells Fargo & Company raised their price target on shares of Norfolk Southern from $365.00 to $385.00 and gave the company an “overweight” rating in a research note on Friday, July 24th. Benchmark reaffirmed a “hold” rating on shares of Norfolk Southern in a report on Friday, July 24th. BMO Capital Markets lifted their price target on shares of Norfolk Southern from $310.00 to $355.00 and gave the company a “market perform” rating in a report on Monday, July 27th. Finally, Evercore set a $358.00 price objective on shares of Norfolk Southern in a research report on Thursday, July 23rd. Seven analysts have rated the stock with a Buy rating and fifteen have assigned a Hold rating to the stock. According to MarketBeat.com, the company currently has a consensus rating of “Hold” and a consensus price target of $348.00.

View Our Latest Research Report on Norfolk Southern

Norfolk Southern Profile (Free Report)

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.

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Key Takeaways Norfolk Southern posted Q2 adjusted EPS of $3.52, beating estimates by 9% as railway revenue hit a record.NSC saw full-year earnings estimates rise over four weeks after stronger revenue and operating execution.Norfolk Southern generated $1.40B operating cash flow in H1 while reducing debt and maintaining its dividend. Norfolk Southern Corporation (NSC - Free Report) has a stronger near-term setup after a solid second-quarter earnings beat, record railway operating revenues and positive estimate revisions. The stock also offers meaningful price-target upside from the reported share price.

The trade-off is valuation. Investors are being asked to pay a premium multiple while cost inflation, service execution and merger-related uncertainty remain important risks.

NSC’s Earnings Beat Supports the Bull CaseNorfolk Southern reported adjusted second-quarter 2026 earnings of $3.52 per share, up 7% year over year. The result was 9% above the Zacks Consensus Estimate of $3.23.

Railway operating revenues rose 11% year over year to a record $3.47 billion, topping the consensus mark by 4.4%. The gain reflected 4% volume growth, stronger revenue per unit and higher fuel surcharges.

Norfolk Southern’s Estimates Are Moving HigherEstimate momentum adds support to the near-term bull case. The full-year earnings estimate has increased 3.9% over the past four weeks, while the report also shows positive changes across one-week, four-week and 12-week estimate-revision periods.

That matters because rising estimates often reinforce favorable short-term sentiment. For NSC, the revisions suggest analysts are giving more credit to revenue improvement and operating execution after the stronger-than-expected quarter.

NSC Trades at a Premium ValuationNSC trades at 25.17X forward 12-month earnings. That is above 21.77X for the Zacks rail sub-industry, 13.6X for the broader transportation sector and 21.57X for the S&P 500.

The premium is not only relative. Norfolk Southern’s five-year forward P/E range runs from 14.03X to 25.2X, with a median of 18.71X, putting the current multiple near the top of its own historical range.

Norfolk Southern Offers Measured Target UpsideNorfolk Southern’s $383 price target compares with a reported share price of $335.74. That implies meaningful appreciation potential from that level.

Still, the upside is not without a cost. Investors are paying a high multiple for projected 2026 EPS of $12.60 versus $12.49 in 2025, suggesting relatively modest near-term earnings growth despite stronger revenue momentum.

NSC’s Cash Flow Supports Core PrioritiesNorfolk Southern generated $1.40 billion of operating cash flow in the first half of 2026. The company ended June with $1.07 billion in cash and cash equivalents, while total debt declined to $16.62 billion from $17.09 billion at year-end 2025.

Shareholder returns remain anchored by the dividend. Norfolk Southern announced a quarterly dividend of $1.35 per share, and the company has paid dividends for 176 consecutive quarters since its formation in 1982. Buybacks, however, remain suspended following the Union Pacific (UNP - Free Report) merger agreement.

Norfolk Southern’s Scores Favor MomentumThe bottom line: NSC’s earnings beat, estimate revisions and price-target upside support investor interest, especially for those focused on momentum. Record revenues and improved demand trends strengthen the near-term story.

The stock carries a Zacks Rank #2 (Buy), and its Momentum Score of A supports the near-term case. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

However, the Value Score of F, Growth Score of D and VGM Score of D show that NSC looks more suitable for momentum-oriented investors than for value or growth-focused buyers.

The companies added commitments, including expanded gateway pricing, to ensure the combined railroad will provide faster, more reliable service as promised.

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SummaryNorfolk Southern Corporation is fundamentally strong but currently overvalued, trading at a premium P/E above historical norms.Recent NSC operational gains were largely driven by external energy market shocks, not sustainable core improvements; GAAP net income and FCF declined despite record revenues.Heavy reliance on adjusted earnings masks recurring costs; GAAP metrics reveal persistent margin compression and profit headwinds.I maintain a Hold rating on NSC stock with a $220/share price target, awaiting a more attractive entry point aligned with normalized earnings and valuation.Looking for more investing ideas like this one? Get them exclusively at Wolf of Value. Learn More » Gary Yeowell/DigitalVision via Getty Images

Sometimes you are very sure about the appeal, or lack of appeal, of a company at a certain valuation. I will say that this is still the case for me with Norfolk Southern Corporation (

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Shares of Union Pacific (UNP +4.02%) rallied on Thursday after the railroad operator raised its full-year profit growth forecast.

Image source: Getty Images.

Solid Q2 performance Union Pacific's operating revenue climbed 12% year over year to $6.9 billion in the second quarter. Excluding fuel surcharges, the railroad giant's freight revenue rose 4%, driven by volume gains and price increases.

Union Pacific's efficiency initiatives are also producing positive results. Trains are moving more quickly through its rail network. Freight car velocity increased 5% to 231 daily miles per car, while average terminal dwell decreased 7% to 19.7 hours. Fuel consumption rate also improved by 1% to 1.051 gallons per thousand gross ton-miles.

Still, higher fuel costs negatively impacted the company's operating ratio -- operating expenses as a percentage of revenue -- which came in at 59.7% compared to 59% in the year-ago quarter.

Today's Change

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4.02

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11.77

Current Price

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304.33

All told, Union Pacific's adjusted net income jumped 12% to $2 billion. Its adjusted earnings per share, aided by stock buybacks, increased 13% to $3.41.

Raised outlook Union Pacific now expects high-single-digit earnings-per-share growth in 2026, up from a prior forecast of mid-single-digit growth.

During a conference call with analysts, CEO Jim Vena said the primarily Western U.S.-based rail network is progressing through the regulatory process for its proposed merger with Eastern U.S.-based Norfolk Southern (NSC +5.32%).

Vena believes the combination will lead to greater competition among freight transport providers, better overall service, and a stronger national supply chain.

"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," Vena said. "The case for our transcontinental railroad is clear, and we're ready to go."

Key Takeaways Norfolk Southern's adjusted EPS rose 7% as record revenue climbed 11% on volume and pricing gains.Intermodal revenue jumped 22%, led by 11% growth in domestic units and a 16% rise in revenue per unit.NSC raised its 2026 expense outlook as higher fuel costs and volumes pressured the operating ratio. Norfolk Southern Corporation (NSC - Free Report) ) reported adjusted second-quarter 2026 earnings of $3.52 per share, up 7% year over year and 9% above the Zacks Consensus Estimate of $3.23. Railway operating revenues rose 11% to a record $3.47 billion, beating the consensus mark of $3.32 billion by 4.4%.

The top-line gain reflected 4% volume growth, stronger revenue per unit and higher fuel surcharges. Total units reached 1.86 million, while adjusted income from railway operations increased 5% to $1.20 billion.

NSC’s Revenue Mix Shows Broad-Based StrengthMerchandise revenues increased 8% year over year to $2.13 billion. Units rose 2%, while revenue per unit advanced 6%, supported by higher fuel surcharge revenue and favorable rate and mix.

Chemicals revenues climbed 18%, agriculture, forest and consumer products increased 4% and metals and construction rose 5%. Automotive revenues advanced 3%, with units remaining essentially flat.

Norfolk Southern's Intermodal Leads GrowthIntermodal revenues jumped 22% to $908 million, with units up 5% and revenue per unit rising 16%. Domestic intermodal units grew 11%, more than offsetting a 3% decline in international units.

Coal revenues climbed 7% to $424 million as units increased 3% and revenue per unit improved 4%. Export coal tonnage surged 25%, while utility and domestic metallurgical tonnage declined 8% and 15%, respectively.

NSC's Costs Weigh on EfficiencyAdjusted railway operating expenses rose 15% to $2.27 billion. Fuel expense surged 85%, or $186 million, mainly because of higher prices. Compensation and benefits increased 8%, while purchased services and rents climbed 6%.

The adjusted operating ratio, which measures operating expenses as a percentage of revenues, deteriorated 210 basis points to 65.5%. Higher fuel expense and the related surcharge revenues created a 110-basis-point year-over-year headwind. Excluding fuel, revenues grew 5%, while revenue per unit increased 1%.

Norfolk Southern's Network Metrics Face PressureService and network measures weakened during the quarter. Train speed declined to 19.9 miles per hour from 21.6 a year ago, while terminal dwell increased to 24.0 hours from 22.7 hours. Car miles per day fell to 138 from 142.

Customer-facing metrics also softened. Merchandise plan compliance dropped to 68% from 78%, and the intermodal service composite declined to 85% from 89%. Management said that network velocity was regaining momentum in the third quarter and reiterated that NSC remains on track for at least $650 million of three-year cost reductions.

NSC's Safety Progress Remains IntactSafety performance provided a counterweight to the service pressure. The first-half FRA accident rate improved to 1.61 from 2.37 in the prior-year period, while the FRA mainline accident rate declined to 0.49 from 0.56.

The first-half personal injury index improved to 1.03 from 1.08. Management emphasized continued investment in safety and linked the progress to longer-term culture change across the railroad.

Norfolk Southern's Cash Flow Funds PrioritiesNet cash provided by operating activities totaled $1.40 billion in the first six months of 2026, down from $2.03 billion a year earlier. Property additions were $821 million, while dividends totaled $606 million. Norfolk Southern did not repurchase shares during the period.

NSC ended June with $1.07 billion in cash and cash equivalents. Total debt declined to $16.62 billion from $17.09 billion at year-end 2025, while the debt-to-total-capitalization ratio improved to 50.6% from 52.4%.

NSC Raises Its Expense OutlookManagement now expects adjusted operating expenses of $8.8 billion to $8.9 billion for 2026. The revised view includes a projected $400 million to $500 million incremental fuel impact versus the original guidance, along with higher volumes.

Capital spending is expected to be $1.9 billion, about $300 million or 14% below the 2025 level. The program is expected to support network reliability and capability as the company prioritizes safety, consistent service and disciplined execution.

Currently, NSC carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q2 Performances of Other Transportation CompaniesDelta Air Lines (DAL - Free Report) reported second-quarter 2026 earnings (excluding 88 cents from non-recurring items) of $1.56 per share, beating the Zacks Consensus Estimate of $1.51. Earnings declined in double digits (% wise) from a year ago as sharply higher fuel costs pressured profitability.

Revenues rose on a year-over-year basis to $17.67 billion but missed the consensus estimate of $17.76 billion. Broad demand strength lifted adjusted total revenue per available seat mile, or TRASM, 12.4%, while premium and diversified revenue streams continued to expand.

United Airlines Holdings, Inc. (UAL - Free Report)  reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.

Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68-billion consensus mark. A 12.1% increase in total revenue per available seat mile, or TRASM, and broad-based gains across premium, loyalty and cargo revenues supported the top line despite sharply higher fuel costs.

J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.

Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.

Norfolk Southern Corp (NSC) released its 8-K filing on July 23, 2026, revealing positive financial results for the second quarter of 2026. The company reported

For the quarter ended June 2026, Norfolk Southern (NSC - Free Report) reported revenue of $3.47 billion, up 11.4% over the same period last year. EPS came in at $3.52, compared to $3.29 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $3.32 billion, representing a surprise of +4.42%. The company delivered an EPS surprise of +8.98%, with the consensus EPS estimate being $3.23.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Norfolk Southern performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Railway Operating Ratio: 67.6% versus the three-analyst average estimate of 66.7%.Revenue ton miles: 49.7 billion compared to the 48.58 billion average estimate based on two analysts.Carloads (Units) - Volume - Merchandise: 610.7 thousand compared to the 612.51 thousand average estimate based on two analysts.Carloads (Units) - Volume - Intermodal: 1.06 million versus the two-analyst average estimate of 1.07 million.Revenue per Carload (Unit) - Total: $1,861.00 versus the two-analyst average estimate of $1,765.63.Railway operating revenues- Merchandise- Agriculture, forest and consumer products: $673 million versus $674.63 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.Railway operating revenues- Coal: $424 million versus the two-analyst average estimate of $393.37 million. The reported number represents a year-over-year change of +7.3%.Railway operating revenues- Merchandise- Chemicals: $646 million versus $585.34 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +18.3% change.Railway operating revenues- Intermodal: $908 million versus $821.41 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +22.2% change.Railway operating revenues- Merchandise- Automotive: $334 million versus the two-analyst average estimate of $332.44 million. The reported number represents a year-over-year change of +3.4%.Railway operating revenues- Merchandise: $2.13 billion versus the two-analyst average estimate of $2.08 billion. The reported number represents a year-over-year change of +8.2%.Railway operating revenues- Merchandise- Metals and construction: $480 million versus the two-analyst average estimate of $491.94 million. The reported number represents a year-over-year change of +4.8%.View all Key Company Metrics for Norfolk Southern here>>>

Shares of Norfolk Southern have returned +8.9% over the past month versus the Zacks S&P 500 composite's +0.4% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Norfolk Southern logo is seen in this illustration taken August 5, 2025. REUTERS/Dado Ruvic/Illustration Purchase Licensing Rights, opens new tab

July 23 (Reuters) - Norfolk Southern (NSC.N), opens new tab beat Wall Street expectations for second-quarter adjusted profit on Thursday, as ​stronger freight demand and increased fuel ‌surcharges billed to customers helped counter fuel-cost pressures.

Fuel costs have remained a headwind for transportation companies, ​though railroads have partly offset the ​pressure by passing costs to shippers via ⁠fuel surcharges, operational efficiencies and steady ​intermodal demand.

The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here.

Here are more details:

U.S. gasoline prices topped $4 ​a gallon in March for the first time in more than three years and have remained near that ​level, keeping pressure on fuel-intensive industries.

Atlanta, ​Georgia-based Norfolk reported an adjusted profit of $3.52 per share, ‌compared ⁠with $3.29 per share a year earlier. Analysts expected an adjusted profit of $3.31 per share, according to data compiled by LSEG.

The company's ​railway operating income ​for ⁠the second quarter rose 11% to $3.5 billion from a year earlier.

On ​an adjusted basis, the company's operating ​ratio - ⁠a key measure of efficiency - was 65.5% for the quarter, deteriorating by 210 basis ⁠points from ​a year earlier.

Union Pacific outperforms peers since FebruaryReporting by ​Apratim Sarkar in Bengaluru; Editing by Vijay Kishore

Our Standards: The Thomson Reuters Trust Principles., opens new tab

Union Pacific UNP reached a deal with Canadian National Railway CNR to give the Montreal railroad further access in the Midwest in exchange for ending its opposition to Union Pacific’s $71.5 billion merger with Norfolk Southern NSC .

Under the proposed agreement, CN would get rights to run its trains on tracks between Tuscola and East St. Louis, Ill., as well as rights to serve customers between St. Louis and Kansas City, Mo., the companies said Wednesday.

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Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) announced today a quarterly dividend of $1.35 per share on its common stock.

The dividend is payable August 20, 2026, to shareholders of record on August 7, 2026.

The company has paid a dividend on its common stock for 176 consecutive quarters since its formation in 1982.

About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com. 

SOURCE Norfolk Southern Corporation

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Key Takeaways Norfolk Southern will report Q2 results July 23, with earnings estimated at $3.23 per share. Intermodal revenues are expected to rise 5.7%, aided by freight demand and e-commerce volumes. Cost cuts and Precision Scheduled Railroading may support efficiency as revenues are seen falling 6.7%. Norfolk Southern Corporation (NSC - Free Report)  is scheduled to report second-quarter 2026 results on July 23, before market open.

The Zacks Consensus Estimate for NSC’s second-quarter 2026 earnings has been revised upward by 3.53% over the past 60 days to $3.23 per share. The consensus mark for earnings implies a 1.8% decline from the year-ago actuals. The Zacks Consensus Estimate for NSC's second-quarter 2026 revenues is pegged at $3.32 billion, indicating a 6.7% fall year over year.

Norfolk Southern has an encouraging earnings surprise history. The company’s earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 6.45%.

Let’s see how things are likely to have shaped up for Norfolk Southern this earnings season.

Factors Likely to Have Influenced NSC’s Q2 PerformanceWe expect NSC’s performance in the to-be-reported quarter to have been bolstered by an uptick in freight market demand and robust cost-cutting initiatives.

The Zacks Consensus Estimate for the Railway operating revenues from the intermodal segment is anticipated to have increased 5.7% from the year ago actuals.

E-commerce demand is likely to have driven NSC's shipment volumes in the to-be-reported quarter, thereby boosting the company's top line. Additionally, service quality is expected to have improved through the company's Precision Scheduled Railroading operating plan, enabling more efficient utilization of assets.

What Our Model Says About NSCOur proven model predicts an earnings beat for Norfolk Southern this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. Which is not the case here.

NSC has an Earnings ESP of +0.21% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

Highlights of NSC’s Q1 ResultsNSC posted earnings (excluding 22 cents from non-recurring items) of $2.65 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $2.51. The adjusted figure was down 1.5% from $2.69 a year ago.

Railway operating revenues were $3.0 billion, edging past the Zacks Consensus Estimate of $2.99 billion and rising 0.2% year over year. The adjusted operating ratio (operating expenses as a % of revenues) in the quarter landed at 68.7%, as higher costs and fuel headwinds weighed on profitability. The year-ago value of the metric was 67.9%. A lower value of the metric is preferable.

Other Stocks to ConsiderHere are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.

CSX Corporation (CSX - Free Report) has an Earnings ESP of +1.31% and a Zacks Rank #2 at present. CSX is scheduled to report second-quarter 2026 results on July 22, after market close. 

The Zacks Consensus Estimate for the second-quarter 2026 earnings has been revised upward by 6.38% over the past 60 days to 50 cents per share. The Zacks Consensus Estimate for revenues is pegged at $3.82 billion, indicating a 6.90% increase from the second-quarter 2025 actuals. 

Schneider National (SNDR - Free Report) has an Earnings ESP of +1.50% and a Zacks Rank #2 at present. SNDR is scheduled to report second-quarter 2026 earnings on July 30.

The Zacks Consensus Estimate for second-quarter 2026 earnings has been remained flat at 22 cents over the past 60 days. SNDR’s earnings beat the Zacks Consensus Estimate in one of the preceding four quarters (missing the mark twice and met the mark once in the remaining three quarters). The average miss is 17.97%.

OMAHA, Neb. & ATLANTA--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) today submitted the first portion of their responses to the Surface Transportation Board’s (STB) May 28, 2026, request for additional information to support their accepted merger application.

Today’s filing addresses the STB’s questions regarding Terminal Railroad Association of St. Louis (TRRA), Kansas City Terminal Railway (KCT) and TTX Company. These entities are jointly owned with other Class I railroads, operated by independent management teams and governed by non-discrimination policies. Union Pacific and Norfolk Southern do not control these companies today and remain firm in their commitment that they will not control them post-merger. The merger application and today’s supplemental filing provide the STB with options to implement this commitment, up to and including divestiture.

In particular, for the TRRA, the filing provides clear evidence that the other Class I railroads who are vocally opposing the merger are using the TRRA as a pawn in their efforts to stop or delay the merger. This includes failing to appear at a properly convened special meeting for the sole purpose of discussing ways to reduce Union Pacific’s ownership in TRRA post-merger. Only Union Pacific and Norfolk Southern board members attended the meeting called by TRRA’s corporate secretary, while members from BNSF, CSX and Canadian National did not show.

Connecting Union Pacific and Norfolk Southern’s end-to-end networks will finally give American shippers single-line transcontinental rail service, creating a stronger alternative to long-haul trucking, making the entire supply chain more competitive, and putting downward pressure on truck and rail prices. The opportunities opened by the merger for shifting freight from truck to rail are projected to save shippers an estimated $3.5 billion annually.

Union Pacific and Norfolk Southern have consistently welcomed rigorous regulatory review of the proposed merger, and today’s submission reflects that commitment. The responses to the STB’s other requests for additional information will follow by July 27, 2026.

The STB accepted as complete the Union Pacific-Norfolk Southern merger application on May 28, a positive step toward creating America’s first transcontinental railroad. The railroads are committed to working constructively with the STB toward a mid-2027 completion. For more information, visit AmericasGreatConnection.com.

About Union Pacific

Union Pacific (NYSE: UNP) delivers the goods families and businesses use every day with safe, reliable, and efficient service. Operating in 23 western states, the company connects its customers and communities to the global economy. Trains are the most environmentally responsible way to move freight, helping Union Pacific protect future generations. More information about Union Pacific is available at www.up.com.

About Norfolk Southern

Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com

Cautionary Note Regarding Forward-Looking Statements

Certain statements in this communication are “forward-looking statements” within the meaning of the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause Union Pacific’s, Norfolk Southern’s or the combined company’s actual results, levels of activity, performance, or achievements or those of the railroad industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like “may,” “will,” “could,” “would,” “should,” “expect,” “anticipate,” “believe,” “project,” “estimate,” “intend,” “plan,” “pro forma,” or any variations or other comparable terminology.

While Union Pacific and Norfolk Southern have based these forward-looking statements on those expectations, assumptions, estimates, beliefs and projections they view as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond Union Pacific’s, Norfolk Southern’s or the combined company’s control, including but not limited to, in addition to factors disclosed in Union Pacific’s and Norfolk Southern’s respective filings with the U.S. Securities and Exchange Commission (the “SEC”): the occurrence of any event, change or other circumstance that could give rise to the right of one or both of the parties to terminate the definitive merger agreement between Union Pacific and Norfolk Southern providing for the acquisition of Norfolk Southern by Union Pacific (the “Transaction”); the risk that potential legal proceedings may be instituted against Union Pacific or Norfolk Southern and result in significant costs of defense, indemnification or liability; the possibility that the Transaction does not close when expected or at all because required Surface Transportation Board or other approvals and other conditions to closing are not received or satisfied on a timely basis or at all (and the risk that such approvals may result in the imposition of conditions that could adversely affect the combined company or the expected benefits of the Transaction); the risk that the combined company will not realize expected benefits, cost savings, accretion, synergies and/or growth from the Transaction, or that such benefits may take longer to realize or be more costly to achieve than expected, including as a result of changes in, or problems arising from, general economic and market conditions, tariffs, interest and exchange rates, monetary policy, laws and regulations and their enforcement, and the degree of competition in the geographic and business areas in which Union Pacific and Norfolk Southern operate; disruption to the parties’ businesses as a result of the announcement and pendency of the Transaction; the costs associated with the anticipated length of time of the pendency of the Transaction, including the restrictions contained in the definitive merger agreement on the ability of Union Pacific and Norfolk Southern, respectively, to operate their respective businesses outside the ordinary course during the pendency of the Transaction; the diversion of Union Pacific’s and Norfolk Southern’s management’s attention and time from ongoing business operations and opportunities on merger-related matters; the risk that the integration of each party’s operations will be materially delayed or will be more costly or difficult than expected or that the parties are otherwise unable to successfully integrate each party’s businesses into the other’s businesses; the possibility that the Transaction may be more expensive to complete than anticipated, including as a result of unexpected factors or events; reputational risk and potential adverse reactions of Union Pacific’s or Norfolk Southern’s customers, suppliers, employees, labor unions or other business partners, including those resulting from the announcement or completion of the Transaction; the dilution caused by Union Pacific’s issuance of additional shares of its common stock in connection with the consummation of the Transaction; the risk of a downgrade of the credit rating of Union Pacific’s indebtedness, which could give rise to an obligation to redeem existing indebtedness; a material adverse change in the financial condition of Union Pacific, Norfolk Southern or the combined company; changes in domestic or international economic, political or business conditions, including those impacting the transportation industry (including customers, employees and supply chains); Union Pacific’s, Norfolk Southern’s and the combined company’s ability to successfully implement its respective operational, productivity, and strategic initiatives; a significant adverse event on Union Pacific’s or Norfolk Southern’s network, including, but not limited to, a mainline accident, discharge of hazardous materials, or climate-related or other network outage; the outcome of claims, litigation, governmental proceedings and investigations involving Union Pacific or Norfolk Southern, including, in the case of Norfolk Southern, those with respect to the Eastern Ohio incident; the nature and extent of Norfolk Southern’s environmental remediation obligations with respect to the Eastern Ohio incident; new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; and a cybersecurity incident or other disruption to our technology infrastructure.

This list of important factors is not intended to be exhaustive. These and other important factors, including those discussed under “Risk Factors” in Norfolk Southern’s Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 9, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/0000702165/000162828026006268/nsc-20251231.htm) and Norfolk Southern’s subsequent filings with the SEC, Union Pacific’s most recent Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 6, 2026 (available at https://www.sec.gov/ix?doc=/Archives/edgar/data/100885/000010088526000037/unp-20251231.htm) and Union Pacific’s subsequent filings with the SEC, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. References to Union Pacific’s and Norfolk Southern’s website are provided for convenience and, therefore, information on or available through the website is not, and should not be deemed to be, incorporated by reference herein. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, Union Pacific and Norfolk Southern disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise, except as may be required by applicable law or regulation.

Norfolk Southern to announce second quarter 2026 earnings results on July 23, 2026 PR Newswire ATLANTA, June 25,

On June 24, 2026, we present a DCF analysis for Norfolk Southern Corp NSC , which has shown a price performance of +20.4% over the past year, despite a recent decline of -3.5% in the last month. Below are key highlights from our analysis:

DCF Earnings-based intrinsic value of $155.45 vs current price of $303.39 (margin of safety: -95.2%) DCF FCF-based intrinsic value of $123.14 vs current price (second opinion, margin of safety: -146.4%) GF Score™ of 84/100, indicating high reliability of the DCF inputs What Is NSC Worth? DCF Earnings-Based Model The DCF earnings-based model for Norfolk Southern Corp NSC utilizes a two-stage approach to estimate intrinsic value. In the first stage, we project earnings growth over the next ten years, followed by a terminal growth phase. The assumptions used in this model are as follows:

Parameter Value Current EPS (TTM, excl. non-recurring) $12.46 10-Year Growth Rate 6.2% 10-Year Treasury Rate 4.49% Discount Rate (ceil(Treasury) + 6%) 11% Terminal Growth Rate 4% In the first stage (Years 1-10), we expect EPS to grow at an annual rate of 6.2%, which is then discounted at a rate of 11%. The value derived from this growth stage is $98.50 per share. In the second stage (Years 11-20), we apply a terminal growth rate of 4%, also discounted at 11%, yielding a terminal stage value of $56.95 per share. The calculation summary is as follows:

Stage Description Value Growth Stage (Years 1-10) EPS growing at 6.2%, discounted at 11% $98.50 Terminal Stage (Years 11-20) 4% terminal growth, discounted at 11% $56.95 Intrinsic Value Growth + Terminal $155.45 Comparing the current price of $303.39 with the intrinsic value of $155.45 indicates that NSC is modestly overvalued, with a margin of safety of -95.2%. It is important to note that GuruFocus uses EPS excluding non-recurring items, as research shows stock prices correlate more closely with earnings than with free cash flow. For further details, visit the NSC DCF Calculator.

What Does the Free Cash Flow DCF Say? The free cash flow (FCF) based intrinsic value for Norfolk Southern Corp is calculated at $123.14. When compared to the earnings-based intrinsic value of $155.45, the two models provide differing perspectives on valuation. The FCF model also indicates that NSC is significantly overvalued, with a margin of safety of -146.4%.

How Does GF Value™ Compare to the DCF Models? The GF Value™ for Norfolk Southern Corp is calculated at $254.01, providing a third perspective on valuation. GF Value™ is GuruFocus' proprietary measure derived from historical trading multiples, past business growth, and future performance estimates. While the DCF earnings-based and FCF-based models suggest significant overvaluation, the GF Value™ indicates a lesser degree of overvaluation. For more insights, visit the GF Value™ page.

What Does NSC's GF Score™ Tell Us? The GF Score™ ranks stocks from 0 to 100 based on five key aspects: Financial Strength, Profitability, Growth, Valuation, and Momentum. Stocks with higher GF Score™ values have been found to generate higher long-term returns (backtested 2006-2021). The GF Score™ for NSC is 84/100, indicating strong fundamentals. Below is a summary of the GF Score™ metrics:

Metric Rating GF Score™ 84/100 Financial Strength 4/10 Profitability 9/10 Growth 7/10 Valuation 6/10 Momentum 8/10 With a predictability rank of 2/5 stars, the reliability of the DCF model for this stock is moderate. For more details, visit the NSC stock page.

Key Assumptions and Limitations It is important to note that DCF models are highly sensitive to growth rate and discount rate assumptions. Stocks with low predictability ratings, such as NSC's 2/5 stars, tend to produce less reliable DCF estimates. Additionally, the terminal growth rate of 4% is a simplifying assumption that may not reflect future economic conditions.

What This Means for Investors In summary, all three valuation models (DCF earnings, DCF FCF, and GF Value™) indicate that Norfolk Southern Corp is overvalued at its current price of $303.39. The DCF earnings-based model suggests an intrinsic value of $155.45, while the FCF-based model indicates $123.14. The GF Value™ of $254.01 provides a slightly more favorable view but still aligns with the overall consensus of overvaluation.

For the full DCF analysis, visit the NSC DCF Calculator. You can also explore the GF Value™ page, or use the GuruFocus Stock Screener to find undervalued predictable companies.

Frequently Asked Questions What is NSC's intrinsic value based on DCF?

[Answer: earnings-based $155.45, FCF-based $123.14]

Is NSC overvalued or undervalued?

[Answer using DCF + GF Value™ consensus]

How reliable is the DCF model for NSC?

[Answer using predictability rank 2/5]

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Norfolk Southern Corporation (NYSE:NSC) reported better-than-expected earnings for the first quarter on Friday.

Latest application says the merged railroad would have a 39% market share and provides conditions under which Union Pacific would walk away from the tie-up.

ATLANTA, May 6, 2026 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) Executive Vice President and Chief Financial Officer Jason Zampi will present at the Bank of America 2026 Industrials, Transportation & Airlines Key Leaders Conference. Details on how to listen to the discussion are below.