On its third quarter of 2026 earnings call, held on Oct. 22, 2026, Union Pacific Corporation (UNP -1.75%) reported record financial results driven by volume growth across its freight network. Long-term investors care because operational efficiency and network capacity let the railroad grow margins as volume expands over time. Three things management said on the earnings call stand out.
1. Operational Discipline Keeps Terminal Dwell Times LowOperational efficiency determines how fast freight cars cycle through rail yards. Management reduced terminal dwell, the time train cars spend idling in yards before moving, below 20 hours for four straight quarters, enabling the network to handle 6% higher volume without operational drag.
Freight car velocity increased 1% to 228 miles per day, driven by a 2% improvement in terminal dwell. This marks our fourth straight quarter of terminal dwell below 20 hours, demonstrating our ability to run an efficient network while handling higher demand.
-- Eric Gehringer, Executive Vice President of Operations2. Proposed Norfolk Southern Combination Aims to Lower Supply Chain CostsCombining rail networks with Norfolk Southern creates a transcontinental system connecting Western and Eastern markets without handoffs. Eliminating interchange delays reduces transit times for shippers, making rail transport far more competitive against long-haul trucking.
It will lower transportation costs and provide faster, more seamless rail service options that enable our customers to compete and help keep goods affordable for American consumers.
-- Jim Vena, Chief Executive Officer3. Domestic Intermodal Business Drives Record Volume GrowthDomestic intermodal shipments, which involves moving freight containers via truck and train, reached a fifth consecutive record quarter as shippers converted highway truck traffic to rail. Service reliability and buffer resources enabled the company to capture market share from highway carriers.
Domestic intermodal delivered its fifth consecutive record quarter in both volume and revenue. Our foundation of service, combined with strong business development and the deployment of buffer resources, enabled 13% volume growth.
-- Kenny Rocker, Executive Vice President of Marketing and SalesLooking AheadFreight demand accelerates across intermodal and industrial markets, and leadership isn't hiding its satisfaction about network execution. Maintaining buffer locomotives and trained crews provides capacity to handle surge traffic smoothly.
We feel very confident that we have sufficient resources that we can deploy and continue to handle the growth seamlessly and continue to put up the great numbers, the record results that we have done so far. But we are wanting to make sure we maintain that surge buffer.
-- Jennifer Hamann, Chief Financial OfficerManagement is watching core operating ratio, an efficiency metric showing expenses as a percentage of revenue, to ensure pricing discipline offsets diesel cost swings. Long-term value rests on leveraging train length efficiency, terminal technology, and single-line service advantages to win freight from highways.
Overall, we are delivering strong financial results in 2026 as we consistently execute on the three key levers for our railroad success: volume, pricing, and productivity.
-- Jennifer Hamann, Chief Financial OfficerThe Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.
Union Pacific just beat earnings and raised its dividend for the 20th straight year, but a looming merger is redirecting billions away from shareholders. Here is what income investors need to know before the deal closes in 2027.
Union Pacific (NYSE:UNP | UNP Price Prediction) reported third-quarter results this morning. The figures beat expectations on both earnings and revenue. Adjusted EPS was $3.53, ahead of the $3.47 consensus, and revenue rose 15.3% to $7.20 billion. Shares were up 2.86% to $296.10 by midday. For income investors, the real story is behind those numbers, as the payout is well covered and capital returns now run almost entirely through the dividend.
Payout Coverage Leaves Room to Grow Union Pacific declared $1.42 per share for the quarter, up from $1.38. This amounts to about 40% of adjusted quarterly EPS. In 2025, dividends of $5.44 against reported EPS of $11.98 put the payout ratio near 45%. The forward annualized dividend of $5.68 gives a yield of about 1.9%.
Cash flow supports those ratios. Cash from operations rose 18% to $8.3 billion, and free cash flow came to $2.4 billion. Management pointed to the earnings strength behind the payout:
“Union Pacific reported record financial results as net income totaled $2.1 billion, and our adjusted earnings per share grew 15% to $3.53.”
Two Decades of Raises, Checked Against the Record A 3% increase marks the company’s 20th consecutive year of annual raises. The payment history confirms the steady pattern. The quarterly dividend held at $1.30 into early 2024, then rose to $1.34, then $1.38, and now stands at $1.42. That is about 9% above the $1.30 level. Guidance also commits to “consistent annual dividend increases.”
Buybacks Vanish as Merger Cash Piles Up Share repurchases fell to $26 million over the first nine months, compared with $2,679 million a year earlier. The reason is the pending Norfolk Southern (NYSE:NSC) acquisition:
“We will continue growing our cash reserves in anticipation of closing the Norfolk Southern merger in the second half of 2027.”
Norfolk Southern also bought back no shares through September. CSX (NASDAQ:CSX) did the opposite, spending $1,049 million to repurchase 23 million shares. Union Pacific held $3.1 billion in cash and short-term investments. It ended the quarter with adjusted debt to EBITDA of 2.4 times.
How Volume and Pricing Fund the Check The details are simple. Volume grew 6% while headcount fell 1%, so each extra carload added more profit than cost. Intermodal revenue jumped 27%. Pricing increases also continued to outpace inflation. Management expects that to improve:
“Looking forward, you would expect a better position, a better environment for stronger pricing.”
Merger Debt Is the Risk to Track The company itself flags a credit rating downgrade risk from increased indebtedness linked to the acquisition. If borrowing costs rise, more cash goes to interest, and less is left for dividend growth. Fuel is a pressure point as well, with fourth-quarter prices expected to average about $4.85 per gallon.
Verdict for Income Investors The dividend looks secure. A payout near 40% of earnings and a 20-year record of raises back that up. Starting income is modest at a 1.9% yield, though, and buybacks are on hold until the merger closes. For now, income growth will come from steady raises like this year’s 3%. Watch the November 18 merger comment date and fourth-quarter fuel costs.
Contact [email protected] for any questions or corrections.
CMH Wealth Management LLC decreased its holdings in Union Pacific Corporation (NYSE: UNP) by 18.4% during the undefined quarter, according to its most recent disclosure with the SEC. The firm owned 9,709 shares of the railroad operator's stock after selling 2,184 shares during the period. CMH Wealth Management LLC's holdings in Union Pacific
OMAHA, Neb.--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) today reported third quarter 2026 net income of $2.1 billion, up 16%, and diluted earnings per share (EPS) of $3.49, up 16%, compared to reported third quarter 2025 net income of $1.8 billion and diluted EPS of $3.01. Adjusted third quarter 2026 net income* of $2.1 billion increased 15%, and adjusted diluted EPS* of $3.53 increased 15%, compared to adjusted third quarter 2025 net income* of $1.8 billion and adjusted diluted EPS.
This Corner of the Market Is Outperforming the Benchmark—And It's Not AIUnion Pacific NYSE: UNP reported record third-quarter financial results as freight volume growth, operating productivity and intermodal demand supported higher revenue and earnings, while elevated diesel prices remained a significant cost headwind.
Net income totaled $2.1 billion, and adjusted earnings per share increased 15% year over year to $3.53, Chief Executive Officer Jim Vena said during the company’s Oct. 22 earnings call. Operating revenue rose 15% to $7.2 billion, including a 15% increase in freight revenue to $6.8 billion on 6% volume growth.
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Buffett Spent 60 Years Ignoring Tech and the Bill Is Coming Due“Our third quarter results reflect the strength of our franchise and our ability to execute at a consistently high level,” Vena said. He cited the company’s volume growth and a 110-basis-point improvement in its core operating ratio, excluding the effects of fuel and merger costs.
Fuel Costs Pressure Reported Operating Ratio
CFO Jennifer Hamann said total operating expenses increased 15% to $4.3 billion, led primarily by higher diesel fuel prices. Fuel expense rose 69% as the average fuel price increased 64% from $2.56 per gallon a year earlier to $4.21 per gallon. Higher fuel costs added 140 basis points to the operating ratio, she said.
AI Broke the Trucks: 3 Transports to Buy After the AI PanicUnion Pacific reported an operating ratio of 58.8% and reported earnings per share of $3.49. Compensation and benefits expense increased 4%, reflecting a 5% increase in cost per employee from higher wages, incentive compensation and training costs. However, headcount declined 1% while carload volumes rose 6%, producing the company’s ninth consecutive quarter of record workforce productivity.
Cash from operations increased 18% to $8.3 billion, while free cash flow totaled $2.4 billion after network investment. The company raised its quarterly dividend by 3%, marking its 20th consecutive year of an annual dividend increase. It ended the quarter with $3.1 billion in cash and short-term investments and an adjusted debt-to-EBITDA ratio of 2.4 times.
Hamann said Union Pacific is continuing to build cash reserves ahead of its anticipated closing of the Norfolk Southern merger in the second half of 2027. The company affirmed its outlook for reported earnings-per-share growth in the high single digits for 2026, compared with reported 2025 EPS of $11.98. It also raised planned 2026 capital spending to $3.5 billion, pulling forward certain projects originally planned for 2027.
Intermodal and Industrial Markets Lead Volume Growth
Executive Vice President of Marketing and Sales Kenny Rocker said freight revenue excluding fuel surcharge reached a record $5.6 billion, up 6%. Business mix muted the pricing contribution because nearly 75% of quarterly volume growth came from domestic and international intermodal traffic.
Bulk: Revenue increased 10% on flat volume. Grain and grain products benefited from export demand and renewable-fuel activity, partly offset by lower wheat shipments. Coal and renewables volume fell 3% amid lower natural-gas prices and elevated inventories.
Industrial: Revenue rose 14% and volume increased 6%, with record industrial carloads and freight revenue excluding fuel. Growth was supported by construction-related metals shipments, domestic steel demand, petroleum products and business-development wins.
Premium: Revenue increased 21% and volume rose 9%. Domestic intermodal recorded its fifth consecutive quarter of record volume and revenue, with volume up 13%. International intermodal volume rose 8%, helped by West Coast imports and business wins.
Rocker said domestic intermodal is positioned to deliver its third consecutive record-volume year, supported by over-the-road conversions and service performance. International intermodal volumes are expected to grow by double digits in the fourth quarter after lapping prior-year tariff volatility.
He also said Union Pacific expects opportunities for stronger pricing as contracts reset following an improvement in truck-market conditions during the spring and summer. The company said its intermodal operations have benefited from capacity investments in locations including the Twin Cities, Phoenix, Kansas City and the Inland Empire.
Operational Metrics Improve With Higher Volumes
Executive Vice President of Operations Eric Gehringer said the railroad handled higher demand while improving several operating measures. Freight-car velocity rose 1% to 228 miles per day, while terminal dwell improved 2%. Terminal dwell remained below 20 hours for a fourth consecutive quarter.
The intermodal service performance index was 92% as intermodal volume increased 11%, while the manifest service performance index was 93% against what the company described as record industrial carloads. Train length increased 2% to nearly 10,000 feet, and fuel consumption per unit of output declined 2%, setting a quarterly record.
Gehringer said Union Pacific added resources to support growth but retained additional buffer capacity. The active locomotive fleet increased 2% to handle a 4% increase in gross ton-miles, while locomotive productivity remained even with the prior year’s record third quarter.
Norfolk Southern Merger Remains Central Focus
Vena said the Surface Transportation Board has issued a procedural schedule for Union Pacific’s proposed combination with Norfolk Southern. Based on that schedule, he said the company expects to report its first earnings as a merged entity about a year from now.
Union Pacific has requested permission for ex parte communications with the STB for a second time, according to Vena, saying it is willing to discuss the details of its merger application. He said the company believes the transaction would lower transportation costs, improve service speed and create more seamless rail options for customers.
Vena said Union Pacific has received more than 500 customer letters supporting the merger and is working with about 30 customers on integration planning. He also said the company has provided job protections for employees, while acknowledging that some labor groups remain opposed.
Near the close of the call, Vena announced that Hamann will leave the company early next year after extending her tenure by an additional year. He credited her with helping lead the company through its recent performance and merger planning.
About Union Pacific (NYSE:UNP)Union Pacific Corporation NYSE: UNP is a transportation company that operates one of the largest freight railroad networks in the United States. Through its Union Pacific Railroad subsidiary, the company moves goods across the western two-thirds of the country, connecting major agricultural, industrial, energy, population and port markets.
Union Pacific transports a broad range of commodities and products, including agricultural goods, automotive shipments, chemicals, coal, industrial products, forest products and intermodal containers.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Union Pacific Corporation ( UNP ) Q3 2026 Earnings Call October 22, 2026 8:45 AM EDT Company Participants Vincenzo Vena - CEO & Director Jennifer Hamann - Executive VP & CFO Kenny Rocker - Executive Vice President of Marketing & Sales Eric Gehringer - Executive Vice President of Operations Conference Call Participants Christian Wetherbee - Wells Fargo Securities, LLC, Research Division Ken Hoexter - BofA Securities, Research Division Scott Group - Wolfe Research, LLC Jason Seidl - TD Cowen, Research Division Walter Spracklin - RBC Capital Markets, Research Division David Vernon - Bernstein Institutional Services LLC, Research Division Stephanie Benjamin Moore - Jefferies LLC, Research Division Jordan Alliger - Goldman Sachs Group, Inc., Research Division Ariel Rosa - Citigroup Inc., Research Division Brian Ossenbeck - JPMorgan Chase & Co, Research Division Thomas Wadewitz - UBS Investment Bank, Research Division Jonathan Chappell - Evercore ISI Institutional Equities, Research Division Richa Talwar - Deutsche Bank AG, Research Division Brandon Oglenski - Barclays Bank PLC, Research Division Presentation Unknown Attendee Thank you for accessing Union Pacific Corporation's 2026 Third Quarter Earnings Conference Call held at 8:45 a.m. Eastern Time on October 22, 2026, in Omaha, Nebraska.
Key Takeaways Union Pacific's Q3 earnings rose 14.6% to $3.53 per share, while revenues climbed 15.3% to $7.20B.UNP's freight revenues grew 14.9%, led by higher carloads, core pricing gains & fuel surcharge revenues.UNP's fuel expenses surged 68.8%, while the company maintained its high-single-digit EPS growth outlook.
Union Pacific Corporation (UNP - Free Report) reported impressive third-quarter 2026 results, wherein both earnings and revenues beat the Zacks Consensus Estimate. Strong volume growth, core pricing gains and higher fuel surcharge revenues contributed to the results.
Quarterly adjusted earnings (excluding 4 cents from acquisition-related expenses) of $3.53 per share beat the Zacks Consensus Estimate of $3.47 by 1.7% and increased 14.6% year over year. Operating revenues of $7.20 billion surpassed the consensus estimate of $7.12 billion by 1.1% and rose 15.3% year over year. Revenue carloads increased 6% year over year.
UNP's Revenue Growth Supported by Higher Freight DemandFreight revenues (accounting for approximately 95% of the top line) increased 14.9% year over year to $6.81 billion. Freight revenues excluding fuel surcharge increased 6% year over year to $5.64 billion. Fuel surcharge revenues surged to $1.17 billion from $602 million in the year-ago quarter.
Other revenues increased 21.1% year over year to $384 million. Total revenue carloads reached 2.29 million compared with 2.16 million in the prior-year quarter. Average revenue per car increased 8% year over year to $2,971, reflecting improved revenue generation per shipment.
Union Pacific's Expenses Rise on Higher Fuel CostsOperating income increased 15.5% year over year to $2.94 billion. Total operating expenses increased 15.1% year over year to $4.25 billion, primarily due to higher fuel prices, inflation and volume-related expenses. Fuel expenses surged 68.8% year over year to $1.04 billion.
Expenses on purchased services and materials increased 9.2% year over year to $746 million. Compensation and benefits expenses rose 4.1% to $1.26 billion, while depreciation expenses increased 4% to $643 million. Equipment and other rents declined 2.8% to $206 million.
The operating ratio (operating expenses as a percentage of revenues) improved 10 basis points year over year to 59.1% on a reported basis. However, the adjusted operating ratio deteriorated 30 basis points year over year to 58.8%. Higher fuel prices negatively impacted the operating ratio by 140 basis points.
UNP's Segmental HighlightsBulk freight revenues were $2.12 billion, up 9.6% year over year. Segmental revenue carloads remained nearly flat at 529,000. Grain and grain products revenues increased 11% to $1.09 billion, while coal and renewables revenues rose 12% to $525 million despite a 3% decline in carloads.
Industrial freight revenues totaled $2.51 billion, up 14.4% year over year. Segmental revenue carloads increased 6% to 606,000. Metals and minerals revenues climbed 17% to $666 million, while energy and specialized markets revenues increased 18% to $771 million.
Freight revenues in the Premium division were $2.19 billion, up 21.4% year over year. Premium revenue carloads increased 9% to 1.16 million. Intermodal revenues rose 27% to $1.52 billion, supported by an 11% increase in intermodal carloads. Automotive revenues grew 11% to $671 million.
Union Pacific's Operational Efficiency MetricsFreight car velocity improved 1% year over year to 228 daily miles per car. Average terminal dwell time declined 2% to 19.9 hours, reflecting improvements in terminal operations. Workforce productivity increased 5% to 1,219 car miles per employee.
Train length increased 2% to 9,969 feet, while locomotive productivity remained flat at 140 gross ton-miles per horsepower-day. The fuel consumption rate improved 2% to 1.034 gallons per thousand gross ton-miles. However, intermodal and manifest service performance indexes declined six and seven percentage points, respectively.
UNP's Liquidity PositionUnion Pacific exited the third quarter of 2026 with cash and cash equivalents of $2.21 billion compared with $1.27 billion at the end of 2025. Long-term debt stood at $29.04 billion compared with $30.29 billion at 2025-end.
During the first nine months of 2026, cash provided by operating activities increased to $8.30 billion from $7.07 billion in the corresponding year-ago period. Free cash flow rose to $2.36 billion from $1.86 billion. The company repaid $1.52 billion of debt during the period.
Union Pacific's 2026 OutlookFor 2026, Union Pacific continues to expect reported earnings per share (EPS) growth in the high-single digits, consistent with its three-year compound annual growth rate target of high-single-digit to low-double-digit growth through 2027.
UNP updated its capital investment plan to $3.5 billion.
Currently, UNP carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q3 Performance of Other Transportation CompaniesAlaska Air Group, Inc. (ALK - Free Report) reported third-quarter 2026 adjusted earnings of 36 cents per share, excluding certain tax impacts, beating the Zacks Consensus Estimate of 35 cents by 2.9%. The company had reported adjusted earnings of $1.05 per share a year earlier. Higher fuel expenses weighed on profitability despite strong revenue momentum.
Operating revenues increased 14.4% year over year to $4.30 billion but missed the consensus mark of $4.31 billion marginally by 0.1%.
Wabtec Corporation (WAB - Free Report) reported mixed third-quarter 2026 results, wherein earnings surpassed the Zacks Consensus Estimate, but revenues missed the same.
Quarterly earnings (excluding 41 cents from non-recurring items) of $2.83 per share beat the Zacks Consensus Estimate of $2.72 by 4.04% and increased 22% year over year. Revenues climbed 8.1% year over year to $3.12 billion but missed the consensus mark of $3.18 billion by 2%. The 12-month backlog increased 8.8% to $8.99 billion.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported third-quarter 2026 earnings of $1.82 per share, up 3.4% from $1.76 a year ago. The figure beat the Zacks Consensus Estimate of $1.81 by 0.6%.
Operating revenues climbed 20.4% year over year to $3.68 billion and surpassed the consensus mark of $3.56 billion by 3.2%.
Record fuel prices are pushing freight off US highways and onto trains, helping railroad companies rake in higher revenue and profits as shippers look for cheaper ways to move goods long distances.
Union Pacific (UNP.N), Norfolk Southern (NSC.N) and CSX (CSX.O) all reported a jump in third-quarter profit and revenue this week, with company executives saying high fuel costs and fewer available trucks were sending more business their way.
"Railroads are much more efficient. It costs us way less per ton to move products across the US. So when fuel prices go up, it's naturally an advantage," Union Pacific CEO Jim Vena told investors on a post-earnings call on Thursday.
The shift gives railroads a chance to win back long-haul freight from trucks, though higher fuel prices are raising their own costs and squeezing margins as the Iran war keeps fuel prices elevated. Diesel, a key cost for freight carriers, reached a record $6.53 per gallon in September, according to AAA data.
Railroad gains are showing up most clearly in intermodal shipments, where freight is moved by rail for the long-haul portion of the journey, with trucks typically handling pickup and final delivery.
"We are seeing long-haul truckload shift to intermodal and increased use of transload and rail-served distribution centers," said James Mourafetis, head of transportation, logistics and services at consulting firm EFESO.
Union Pacific's domestic intermodal volume rose 13% from a year earlier in the third quarter, while CSX reported a 7% rise and Norfolk Southern 3%.
Shrinking trucking capacity is also moving some freight onto rail. A prolonged freight downturn has forced smaller carriers out of the market, with high operating costs and stricter driver enforcement limiting the return of trucking capacity.
"The truck market has certainly flipped this year, but recent tonnage levels confirm this is due to reduced capacity, not robust demand," said American Trucking Associations' Chief Economist Bob Costello.
However, higher fuel prices are also raising costs for railroads, making it harder to translate stronger revenue into higher profits, though fuel surcharges have offset some of that pressure.
Union Pacific said high fuel prices hurt its third-quarter operating ratio by 140 basis points, while Norfolk Southern said fuel costs accounted for about half of the year-over-year increase in both revenue and expenses.
Union Pacific (UNP - Free Report) came out with quarterly earnings of $3.53 per share, beating the Zacks Consensus Estimate of $3.47 per share. This compares to earnings of $3.08 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +1.73%. A quarter ago, it was expected that this railroad would post earnings of $3.2 per share when it actually produced earnings of $3.41, delivering a surprise of +6.56%.
Over the last four quarters, the company has surpassed consensus EPS estimates three times.
Union Pacific, which belongs to the Zacks Transportation - Rail industry, posted revenues of $7.2 billion for the quarter ended September 2026, surpassing the Zacks Consensus Estimate by 1.13%. This compares to year-ago revenues of $6.24 billion. The company has topped consensus revenue estimates three times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Union Pacific shares have added about 24.5% since the beginning of the year versus the S&P 500's gain of 13.3%.
What's Next for Union Pacific?While Union Pacific has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Union Pacific was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.32 on $6.92 billion in revenues for the coming quarter and $13.05 on $26.97 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the top 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Canadian Pacific Kansas City (CP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended September 2026. The results are expected to be released on October 28.
This railroad is expected to post quarterly earnings of $0.95 per share in its upcoming report, which represents a year-over-year change of +18.8%. The consensus EPS estimate for the quarter has been revised 0.5% lower over the last 30 days to the current level.
Canadian Pacific Kansas City's revenues are expected to be $3.02 billion, up 13.6% from the year-ago quarter.
Union Pacific (UNP - Free Report) reported $7.2 billion in revenue for the quarter ended September 2026, representing a year-over-year increase of 15.3%. EPS of $3.53 for the same period compares to $3.08 a year ago.
The reported revenue represents a surprise of +1.13% over the Zacks Consensus Estimate of $7.12 billion. With the consensus EPS estimate being $3.47, the EPS surprise was +1.73%.
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.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Union Pacific performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Operating Ratio: 59.1% versus the three-analyst average estimate of 58.7%.Revenue Ton-Miles: 114.08 billion compared to the 113.1 billion average estimate based on two analysts.Revenue Carloads - Total: 2.29 million compared to the 2.28 million average estimate based on two analysts.Revenue Carloads - Industrial Products: 606 thousand compared to the 607.95 thousand average estimate based on two analysts.Average revenue per car: $2,971.00 versus $2,982.64 estimated by two analysts on average.Average revenue per car - Industrial Products: $4,136.00 versus the two-analyst average estimate of $4,107.79.Revenue Carloads - Premium: 1.16 million compared to the 1.15 million average estimate based on two analysts.Freight Revenues- Premium: $2.19 billion compared to the $2.22 billion average estimate based on two analysts. The reported number represents a change of +21.4% year over year.Freight Revenues- Bulk: $2.12 billion versus $2.09 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +9.6% change.Operating Revenues- Other revenues: $384 million versus $311.14 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +21.1% change.Freight Revenues- Industrial Products: $2.51 billion compared to the $2.5 billion average estimate based on two analysts. The reported number represents a change of +14.4% year over year.Operating Revenues- Freight revenues: $6.81 billion versus $6.81 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +15% change.View all Key Company Metrics for Union Pacific here>>>
Shares of Union Pacific have returned +4.5% over the past month versus the Zacks S&P 500 composite's no 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.
Union Pacific (UNP.N) reported a 15% jump in third-quarter adjusted profit on Thursday, helped by higher fuel surcharge revenues and core pricing strength, which more than offset cost pressures.
The Omaha, Nebraska-based railroad operator's adjusted quarterly profit rose to $3.53 per share from $3.08 per share a year earlier.
(This story has been refiled to fix a typo in paragraph 1.)
Key Takeaways Union Pacific's Q3 earnings are projected to rise 12.7% to $3.47 per share, with an earnings beat expected.UNP's Q3 revenues are expected to climb 13.97% to $7.12 billion, aided by a 14.8% rise in freight revenues.Lower shipment volumes, Middle East tensions and supply-chain disruptions may pressure UNP's Q3 performance.
Union Pacific Corporation (UNP - Free Report) is scheduled to report third-quarter 2026 results on Oct. 22, before market open.
The Zacks Consensus Estimate for UNP’s third-quarter 2026 earnings has been revised upward by 2.06% over the past 60 days to $3.47 per share. The consensus mark for earnings implies a 12.7% rise from the year-ago actuals. The Zacks Consensus Estimate for UNP’s third-quarter 2026 revenues is pegged at $7.12 billion, indicating 13.97% growth year over year.
Image Source: Zacks Investment Research
Union Pacific has an encouraging earnings surprise history. The company’s earnings have surpassed the Zacks Consensus Estimate in three of the preceding four quarters and missed once in the remaining, delivering an average beat of 2.75%.
Image Source: Zacks Investment Research
Let’s see how things are likely to have shaped up for Union Pacific this earnings season.
Factors to Note Ahead of UNP’s Q3 Earnings ReleaseWe expect the company’s top-line performance in the to-be-reported quarter to have been boosted by an uptick in demand for services. The Zacks Consensus Estimate for freight revenues (which account for most of total revenue) is $6.81 billion, indicating a 14.8% increase from third-quarter 2025 actuals.
The consensus mark for other revenues is pegged at $311 million, implying a 1.8% decrease from the third-quarter 2025 actuals.
On the contrary, persistent geopolitical tensions in the Middle East and ongoing supply-chain disruptions are also likely to have pressured the company's bottom line. The decline in shipment volumes is likely to have offset the benefits of pricing initiatives, hampering the company’s third-quarter prospects.
What Our Model Says About UNPOur proven model predicts an earnings beat for Union Pacific this time around. 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. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Union Pacific has an Earnings ESP of +0.28% and a Zacks Rank #3 at present.
Highlights of UNP’s Q2 EarningsUnion Pacific second-quarter 2026 earnings (excluding 5 cents from non-recurring items) of $3.41 per share beat the Zacks Consensus Estimate by 6.6% and increased roughly 13% on a year-over-year basis.
Operating revenues of $6.86 billion beat the Zacks Consensus Estimate of $6.65 billion and rose 11.5% on a year-over-year basis, driven by core pricing gains, volume growth and higher fuel surcharge revenues, partially offset by business mix. Revenue carloads increased 2% year over year.
Other Stocks to ConsiderOld Dominion Freight Line (ODFL - Free Report) has an Earnings ESP of +0.25% and a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
ODFL is scheduled to report third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 0.63% over the past 60 days. ODFL’s earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average beat being 6.71%.
Kirby Corporation (KEX - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank #3 at present. KEX is scheduled to report third-quarter 2026 earnings on Oct. 28.
The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 0.51% to $1.96 per share over the past 60 days. KEX beat the Zacks Consensus Estimate in three of the preceding four quarters and met the mark on the other occasion. The average beat is 2.86%.
Skončí současný investiční boom zaměřený na umělou inteligenci podobně, jako investiční boom železnic? Podobné otázky si kladou některá média i investoři. Na konkrétnější úrovni přitom hovoříme o tom, jaká je a hlavně bude návratnost investovaného kapitálu. Dnes se z této perspektivy podíváme na hyperscalery, ale i železniční společnosti. Ona je totiž tak trochu otázka i to, jak vlastně „skončil“ onen železniční boom.
U železnic se obvykle pracuje s tím, že docházelo k mohutným investicím, které notně překročily v té době využitelné kapacity. Výsledkem bylo, že řada firem nepokryla svůj náklad kapitálu, nebo přímo zkrachovaly. Ale to samozřejmě není konec příběhu, jen jedné jeho kapitoly. Protože železniční společnosti fungují stále. Jak si vedou?
Union Pacific Corp dosahuje návratnost investovaného kapitálu ROIC mezi 15 – 17 %, což je evidentně vysoko nad návratností požadovanou. Jinak řečeno: To, co na jeden dolar investovaného kapitálu firmy vydělává, je mnohem víc, než co u něj investoři požadují. Norfolk Southern Corp je se svým ROIC u 10 %, což nemusí být výrazně nad požadovanou návratností. Ale nejde o žádný propadák. Canadian Pacific Kansas City Limited je u 6 – 7 %. Takže podle tohoto měřítka vydělává jen něco málo nad bezrizikové sazby. Tedy asi příliš málo.
V USA bylo vrcholu v železničním investičním boomu dosaženo někdy mezi lety 1870 – 1890, ale trval řadu desetiletí a vrcholy a euforii někdy rychle střídaly krachy a panika. Nyní po mnoha desetiletích vidíme, že obrázek je na straně návratnosti kapitálu vlastně stále dost pestrý. Jsou tu společnosti, které si na této (klíčové) rovině vedou hodně dobře. Ale i opaky. Není přitom třeba velké představivosti na vymyšlení scénáře a možností, kdy to s hypercalery, respektive řadou firem v AI byznysu, skončí podobně.
V následujícím grafu pak vidíme návratnost investovaného kapitálu hyperscalerů. Konkrétně to, co vydělají na provozním zisku mínus daně, děleno celkovým investovaným kapitálem – akciovým a dluhovým. Do roku 2022 se tento ROIC pohyboval mezi 30 – 40 %. Což je extrémně vysoké číslo. Jak jsem naznačil výše, pokud bychom mu měli dát tu správnou dimenzi, srovnali bychom jej s návratností požadovanou:
Jako orientační měřítko můžeme vzít požadovanou návratnost u celého trhu. Tedy více než 5 % bezrizikových sazeb a necelá 3 % rizikové prémie (podle odhadů Goldman Sachs). ROIC hyperscalerů je nyní něco nad 20 %. I kdyby jejich rizikovost byla něco nad trhem, stále je ROIC výrazně nad návratností požadovanou. Rizikovost hypercalerů a kvůli jejich podílu na celkové kapitalizaci tedy i rizikovost celého trhu je ale nyní kapitola sama o sobě.
Konec křivky míří dolů a pokud tomu tak bude i nadále, záleží na tom, kde se tento trend zastaví. Pokud nad požadovanou návratností, kapitál se stále „zaplatí“. Každopádně graf spíše podporuje teze o komoditizaci byznysu. A úplné změně podnikatelských modelů řady společností. Které byly ještě nedávno orientovány na vysoce zisková „měkká“ aktiva, ale rychle se z nich stávají méně ziskové (ROIC) firmy stojící na tvrdých/hmotných aktivech. A není překvapivé, že ROIC se u hypersclarů také dost liší: Třeba Microsoft jej má u 30 %, Oracle je u 12 %, Google je za poslední rok na 46 %.
In its upcoming report, Union Pacific (UNP - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $3.47 per share, reflecting an increase of 12.7% compared to the same period last year. Revenues are forecasted to be $7.12 billion, representing a year-over-year increase of 14%.
Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 1.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.
Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
In light of this perspective, let's dive into the average estimates of certain Union Pacific metrics that are commonly tracked and forecasted by Wall Street analysts.
Analysts predict that the 'Freight Revenues- Premium' will reach $2.22 billion. The estimate points to a change of +23.1% from the year-ago quarter.
The consensus among analysts is that 'Freight Revenues- Bulk' will reach $2.09 billion. The estimate indicates a change of +8.3% from the prior-year quarter.
According to the collective judgment of analysts, 'Operating Revenues- Other revenues' should come in at $311.14 million. The estimate indicates a change of -1.9% from the prior-year quarter.
The combined assessment of analysts suggests that 'Freight Revenues- Industrial Products' will likely reach $2.50 billion. The estimate indicates a year-over-year change of +13.8%.
Analysts forecast 'Operating Ratio' to reach 58.7%. Compared to the present estimate, the company reported 59.2% in the same quarter last year.
The collective assessment of analysts points to an estimated 'Revenue Ton-Miles' of 113.10 billion. Compared to the present estimate, the company reported 108.86 billion in the same quarter last year.
Analysts' assessment points toward 'Revenue Carloads - Total' reaching 2.28 million. Compared to the present estimate, the company reported 2.16 million in the same quarter last year.
Analysts expect 'Revenue Carloads - Industrial Products' to come in at 607.95 thousand. The estimate is in contrast to the year-ago figure of 574.00 thousand.
The consensus estimate for 'Average revenue per car' stands at $2982.64 . Compared to the present estimate, the company reported $2740.00 in the same quarter last year.
The average prediction of analysts places 'Average revenue per car - Industrial Products' at $4107.79 . Compared to the current estimate, the company reported $3828.00 in the same quarter of the previous year.
Based on the collective assessment of analysts, 'Revenue Carloads - Premium' should arrive at 1.15 million. Compared to the current estimate, the company reported 1.06 million in the same quarter of the previous year.
It is projected by analysts that the 'Average revenue per car - Premium' will reach $1934.89 . The estimate is in contrast to the year-ago figure of $1701.00 .
View all Key Company Metrics for Union Pacific here>>>
Shares of Union Pacific have demonstrated returns of +3.5% over the past month compared to the Zacks S&P 500 composite's +1.5% change. With a Zacks Rank #3 (Hold), UNP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Banque Pictet & Cie SA raised its position in Union Pacific Corporation (NYSE:UNP – Free Report) by 14.6% during the 3rd quarter, according to the company in its most recent filing with the Securities and Exchange Commission. The fund owned 94,995 shares of the railroad operator’s stock after buying an additional 12,102 shares during the period. Banque Pictet & Cie SA’s holdings in Union Pacific were worth $25,851,000 at the end of the most recent reporting period.
Other hedge funds and other institutional investors have also recently modified their holdings of the company. Capital Advisors Inc. OK boosted its holdings in Union Pacific by 1.8% during the 2nd quarter. Capital Advisors Inc. OK now owns 1,888 shares of the railroad operator’s stock valued at $513,000 after acquiring an additional 34 shares during the period. Tiemann Investment Advisors LLC boosted its stake in shares of Union Pacific by 1.7% in the second quarter. Tiemann Investment Advisors LLC now owns 2,117 shares of the railroad operator’s stock valued at $576,000 after purchasing an additional 35 shares during the period. Burford Brothers Inc. boosted its stake in shares of Union Pacific by 1.9% in the second quarter. Burford Brothers Inc. now owns 1,877 shares of the railroad operator’s stock valued at $511,000 after purchasing an additional 35 shares during the period. TFR Capital LLC. grew its holdings in shares of Union Pacific by 3.8% in the second quarter. TFR Capital LLC. now owns 979 shares of the railroad operator’s stock valued at $266,000 after purchasing an additional 36 shares in the last quarter. Finally, Key Financial Inc increased its stake in Union Pacific by 2.1% during the 1st quarter. Key Financial Inc now owns 1,821 shares of the railroad operator’s stock worth $442,000 after buying an additional 38 shares during the period. 80.38% of the stock is owned by hedge funds and other institutional investors.
Union Pacific Stock Performance Shares of UNP opened at $288.98 on Friday. The company has a 50-day simple moving average of $287.73 and a 200-day simple moving average of $276.60. The company has a market capitalization of $171.67 billion, a PE ratio of 23.51, a P/E/G ratio of 2.87 and a beta of 0.95. The company has a quick ratio of 0.82, a current ratio of 0.99 and a debt-to-equity ratio of 1.40. Union Pacific Corporation has a 52-week low of $215.53 and a 52-week high of $315.99.
Union Pacific (NYSE:UNP – Get Free Report) last released its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.26 by $0.15. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%. The business had revenue of $6.86 billion during the quarter, compared to the consensus estimate of $6.72 billion. During the same quarter in the previous year, the company posted $3.03 EPS. The business’s revenue was up 11.5% on a year-over-year basis. Equities research analysts predict that Union Pacific Corporation will post 13.05 earnings per share for the current fiscal year. Union Pacific Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Stockholders of record on Monday, August 31st were issued a $1.42 dividend. This is a positive change from Union Pacific’s previous quarterly dividend of $1.38. The ex-dividend date was Monday, August 31st. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.0%. Union Pacific’s dividend payout ratio (DPR) is 45.99%.
Analyst Upgrades and Downgrades Several equities analysts have commented on the stock. Wells Fargo & Company reissued an “overweight” rating and issued a $335.00 price target (up from $315.00) on shares of Union Pacific in a research report on Friday, July 24th. Susquehanna reduced their price objective on Union Pacific from $345.00 to $333.00 and set a “positive” rating on the stock in a research note on Friday, October 2nd. Citigroup reiterated a “cautious” rating on shares of Union Pacific in a report on Wednesday, October 7th. Benchmark boosted their target price on Union Pacific from $325.00 to $335.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. Finally, Weiss Ratings raised Union Pacific from a “buy (b-)” rating to a “buy (b)” rating in a research note on Friday, October 9th. Two equities research analysts have rated the stock with a Strong Buy rating, fifteen have given a Buy rating and four have issued a Hold rating to the company. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $325.00.
Check Out Our Latest Analysis on UNP
Key Union Pacific News Here are the key news stories impacting Union Pacific this week:
Positive Sentiment: Analysts expect Union Pacific to deliver earnings growth and potentially exceed estimates this season. Zacks cites favorable earnings-surprise indicators for UNP, which could support the stock if confirmed by the company’s October 22 results. 4 Transportation Stocks Likely to Deliver an Earnings Beat This Season Positive Sentiment: Recent coverage highlights UNP’s extensive rail network and economic moat, which support pricing power, durable cash generation and its dividend. The stock has also posted strong longer-term gains, reflecting investor confidence in the railroad’s business quality. 3 Dividend Stocks With Economic Moats Neutral Sentiment: Union Pacific will release third-quarter results on October 22 before the market opens, followed by a management conference call. The event is a near-term catalyst, with investors likely seeking updates on freight demand, operating performance, cash flow and the Norfolk Southern deal. Union Pacific Announces Third Quarter 2026 Earnings Release Date Neutral Sentiment: Valuation commentary is mixed. UNP has delivered strong recent and multiyear returns and is trading near estimates of fair value, while investors are assessing whether expected future cash flows justify the current valuation and the risks associated with the proposed Norfolk Southern transaction. Union Pacific Stock Trades Near Fair Value After Cash Flow Review Negative Sentiment: Chief Financial Officer Jennifer Hamann plans to retire in early 2027. Although the transition is not immediate, the announcement introduces leadership uncertainty and is the main reason for near-term pressure on UNP shares. The company has announced a search for her successor. Union Pacific CFO Jennifer Hamann to Retire Union Pacific Profile (Free Report)
Union Pacific Corporation (NYSE: UNP) is a freight railroad company that operates one of the largest rail networks in North America. Through its principal subsidiary, Union Pacific Railroad, the company provides transportation services for businesses across the western two-thirds of the United States.
Union Pacific transports a broad range of commodities and manufactured goods, including agricultural products, automotive vehicles and parts, chemicals, coal, industrial products, forest products, and intermodal containers.
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Heartland Express (NASDAQ:HTLD – Get Free Report) and Union Pacific (NYSE:UNP – Get Free Report) are both industrials companies, but which is the better stock? We will compare the two businesses based on the strength of their profitability, analyst recommendations, dividends, valuation, risk, institutional ownership and earnings.
Risk & Volatility Heartland Express has a beta of 1.35, indicating that its share price is 35% more volatile than the S&P 500. Comparatively, Union Pacific has a beta of 0.95, indicating that its share price is 5% less volatile than the S&P 500.
Earnings & Valuation This table compares Heartland Express and Union Pacific”s revenue, earnings per share (EPS) and valuation.
Gross Revenue Price/Sales Ratio Net Income Earnings Per Share Price/Earnings Ratio Heartland Express $805.71 million 1.05 -$52.45 million ($0.28) -39.11 Union Pacific $24.51 billion 7.00 $7.14 billion $12.35 23.40 Union Pacific has higher revenue and earnings than Heartland Express. Heartland Express is trading at a lower price-to-earnings ratio than Union Pacific, indicating that it is currently the more affordable of the two stocks.
Dividends Heartland Express pays an annual dividend of $0.08 per share and has a dividend yield of 0.7%. Union Pacific pays an annual dividend of $5.68 per share and has a dividend yield of 2.0%. Heartland Express pays out -28.6% of its earnings in the form of a dividend. Union Pacific pays out 46.0% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Union Pacific has raised its dividend for 18 consecutive years. Union Pacific is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.
Profitability This table compares Heartland Express and Union Pacific’s net margins, return on equity and return on assets.
Net Margins Return on Equity Return on Assets Heartland Express -2.98% -0.92% -0.58% Union Pacific 28.85% 38.46% 10.45% Institutional & Insider Ownership 53.4% of Heartland Express shares are held by institutional investors. Comparatively, 80.4% of Union Pacific shares are held by institutional investors. 41.6% of Heartland Express shares are held by insiders. Comparatively, 0.2% of Union Pacific shares are held by insiders. Strong institutional ownership is an indication that hedge funds, endowments and large money managers believe a stock is poised for long-term growth.
Analyst Recommendations This is a summary of current recommendations and price targets for Heartland Express and Union Pacific, as provided by MarketBeat.com.
Sell Ratings Hold Ratings Buy Ratings Strong Buy Ratings Rating Score Heartland Express 3 3 1 0 1.71 Union Pacific 0 4 15 2 2.90 Heartland Express currently has a consensus price target of $13.00, indicating a potential upside of 18.72%. Union Pacific has a consensus price target of $325.00, indicating a potential upside of 12.47%. Given Heartland Express’ higher probable upside, equities research analysts plainly believe Heartland Express is more favorable than Union Pacific.
Summary Union Pacific beats Heartland Express on 13 of the 17 factors compared between the two stocks.
(Get Free Report)
Heartland Express, Inc., together with its subsidiaries, operates as a short-to-medium, and long-haul truckload carrier in the United States and Canada. It primarily provides nationwide asset-based dry van truckload service for shippers; cross-border freight and other transportation services; and temperature-controlled truckload services. The company offers its services under the Heartland Express and Millis Transfer brand names. It primarily serves retailers and manufacturers in consumer goods, appliances, food products, and automotive industries. The company was founded in 1978 and is headquartered in North Liberty, Iowa.
About Union Pacific (Get Free Report)
Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. Union Pacific Corporation was founded in 1862 and is headquartered in Omaha, Nebraska.
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Union Pacific Chief Financial Officer Jennifer Hamann to Retire After 35 Years of Service
Union Pacific Railroad today announced Executive Vice President and Chief Financial Officer Jennifer Hamann will retire in early 2027, concluding a remarkable 35-year career that helped shape the railroad through decades of growth, transformation and industry leadership.
Hamann's career reflects the very best of Union Pacific: a deep commitment to service, a willingness to embrace new challenges and an unwavering focus on creating long-term value for customers, employees, communities and shareholders. She joined Union Pacific in 1992 as a member of the company's audit staff and steadily rose through the organization, serving in leadership roles across Finance, Human Resources, Marketing and Sales, Investor Relations and Corporate Audit before being named chief financial officer in January 2020.
Over the course of her career, Hamann became one of the railroad industry's most respected financial leaders, guiding Union Pacific through periods of significant change, including the COVID-19 pandemic and major operational transformation efforts. She played a key leadership role in strengthening the company's balance sheet, enhancing capital allocation strategies and maintaining Union Pacific's position as an industry leader in financial performance. Just as important was Hamann’s ability to build relationships, inspiring her team and establishing trust with investors. She became the first woman to serve as Union Pacific's chief financial officer and was recognized with a Women MAKE Award for her leadership and contributions to the manufacturing and transportation industries.
Hamann championed employee development and inclusion, serving as executive sponsor of LEAD, Union Pacific’s women's employee resource group, helping foster opportunities for future generations of railroaders. She was also a fierce advocate for fighting breast cancer, leading fundraising efforts at Union Pacific for Susan G. Komen’s Race for the Cure. Her leadership extended beyond Union Pacific through service on several corporate and industry boards, including TTX Company, Grupo Ferroviario Mexicano and Steel Dynamics.
“For 35 years, she led with integrity and heart, guiding our finances through historic challenges, executing our strategy, mentoring future leaders and representing Union Pacific across the industry,” said Jim Vena, Chief Executive Officer. “Jennifer was tough – she never said yes, unless she believed it was the right thing to do for Union Pacific. She made this railroad stronger, and her contributions will be felt for generations. I am deeply grateful for her leadership and friendship.”
Known for her collaborative and thoughtful leadership style, Hamann was respected for standing her ground when she believed in something. She pushed her team and developed leaders to be the best. She often credits the pride and dedication of Union Pacific employees as a driving force behind the railroad's success.
“It’s been my honor to serve and represent Union Pacific as its CFO,” said Hamann. “I am grateful for all who supported me along the way – my family, friends and the Union Pacific family I’ve worked alongside for nearly 35 years. Becoming the nation’s first transcontinental railroad is the exciting chapter ahead. I remain an ardent supporter of the merger and with Jim and team leading the way, I’m confident of our success.”
The company will announce succession plans at a later date.
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.
View source version on businesswire.com: https://www.businesswire.com/news/home/20261016013664/en/
Disclosures
I/we have no positions in any stocks mentioned, and have no plans to buy any new positions in the stocks mentioned within the next 72 hours.
OMAHA, Neb.--(BUSINESS WIRE)--Union Pacific Railroad today announced Executive Vice President and Chief Financial Officer Jennifer Hamann will retire in early 2027, concluding a remarkable 35-year career that helped shape the railroad through decades of growth, transformation and industry leadership.Hamann's career reflects the very best of Union Pacific: a deep commitment to service, a willingness to embrace new challenges and an unwavering focus on creating long-term value for customers, emplo.
Railroad operator Union Pacific (UNP.N) said on Friday its Chief Financial Officer Jennifer Hamann will retire in early 2027, after 35 years with the company.
Hamann was appointed CFO in January 2020, making her the first woman to hold the role at Union Pacific
She joined Union Pacific in 1992 and has held leadership positions across the company
Union Pacific said it will announce its succession plans at a later date
Last year, Union Pacific agreed to buy rival Norfolk Southern (NSC.N) in an $85 billion deal to create the first US coast-to-coast freight rail operator, a merger currently under the US transport regulator's review
The market expects Union Pacific (UNP - Free Report) to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2026. This widely-known consensus outlook is important in assessing the company's earnings picture, but a powerful factor that might influence its near-term stock price is how the actual results compare to these estimates.
The earnings report, which is expected to be released on October 22, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.
While the sustainability of the immediate price change and future earnings expectations will mostly depend on management's discussion of business conditions on the earnings call, it's worth handicapping the probability of a positive EPS surprise.
Zacks Consensus EstimateThis railroad is expected to post quarterly earnings of $3.47 per share in its upcoming report, which represents a year-over-year change of +12.7%.
Revenues are expected to be $7.08 billion, up 13.4% from the year-ago quarter.
Estimate Revisions TrendThe consensus EPS estimate for the quarter has been revised 0.85% higher over the last 30 days to the current level. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.
Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.
Price, Consensus and EPS Surprise
Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. Our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction) -- has this insight at its core.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.
A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.
Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).
How Have the Numbers Shaped Up for Union Pacific?For Union Pacific, the Most Accurate Estimate is higher than the Zacks Consensus Estimate, suggesting that analysts have recently become bullish on the company's earnings prospects. This has resulted in an Earnings ESP of +0.29%.
On the other hand, the stock currently carries a Zacks Rank of #3.
So, this combination indicates that Union Pacific will most likely beat the consensus EPS estimate.
Does Earnings Surprise History Hold Any Clue?Analysts often consider to what extent a company has been able to match consensus estimates in the past while calculating their estimates for its future earnings. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.
For the last reported quarter, it was expected that Union Pacific would post earnings of $3.2 per share when it actually produced earnings of $3.41, delivering a surprise of +6.56%.
Over the last four quarters, the company has beaten consensus EPS estimates three times.
Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.
That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
Union Pacific appears a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.
Expected Results of an Industry PlayerAmong the stocks in the Zacks Transportation - Rail industry, CSX (CSX - Free Report) , is soon expected to post earnings of $0.53 per share for the quarter ended September 2026. This estimate indicates a year-over-year change of +20.5%. This quarter's revenue is expected to be $3.96 billion, up 10.4% from the year-ago quarter.
The consensus EPS estimate for CSX has been revised 0.3% higher over the last 30 days to the current level. However, a lower Most Accurate Estimate has resulted in an Earnings ESP of -2.23%.
When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that CSX will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates three times.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Union Pacific (NYSE:UNP – Get Free Report) is expected to be posting its Q3 2026 results before the market opens on Thursday, October 22nd. Analysts expect Union Pacific to post earnings of $3.47 per share and revenue of $7.12 billion for the quarter. Parties may visit the company’s upcoming Q3 2026 earnings overview page for the latest details on the call scheduled for Thursday, October 22, 2026 at 8:45 AM ET.
Union Pacific (NYSE:UNP – Get Free Report) last issued its earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.26 by $0.15. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The business had revenue of $6.86 billion for the quarter, compared to analyst estimates of $6.72 billion. During the same quarter in the prior year, the business posted $3.03 EPS. The company’s revenue for the quarter was up 11.5% on a year-over-year basis. On average, analysts expect Union Pacific to post $13.05 EPS for the current fiscal year and $14.01 EPS for the next fiscal year.
Union Pacific Stock Performance Shares of UNP stock opened at $286.01 on Thursday. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.82 and a current ratio of 0.99. Union Pacific has a one year low of $215.53 and a one year high of $315.99. The company’s 50-day simple moving average is $287.94 and its 200-day simple moving average is $276.17. The stock has a market capitalization of $169.91 billion, a price-to-earnings ratio of 22.99, a PEG ratio of 2.80 and a beta of 0.95.
Union Pacific Increases Dividend The company also recently disclosed a quarterly dividend, which was paid on Wednesday, September 30th. Investors of record on Monday, August 31st were issued a $1.42 dividend. This is an increase from Union Pacific’s previous quarterly dividend of $1.38. This represents a $5.68 annualized dividend and a yield of 2.0%. The ex-dividend date of this dividend was Monday, August 31st. Union Pacific’s dividend payout ratio is presently 45.99%. Analyst Ratings Changes Several analysts have issued reports on UNP shares. Evercore restated an “outperform” rating and set a $294.00 price objective on shares of Union Pacific in a research note on Thursday, June 25th. Susquehanna reduced their target price on Union Pacific from $345.00 to $333.00 and set a “positive” rating on the stock in a report on Friday, October 2nd. Erste Group Bank started coverage on Union Pacific in a research report on Thursday, August 27th. They issued a “buy” rating for the company. Robert W. Baird lifted their target price on Union Pacific from $311.00 to $344.00 and gave the stock an “outperform” rating in a research report on Monday, July 27th. Finally, BMO Capital Markets reiterated a “market perform” rating and issued a $320.00 price target (up from $285.00) on shares of Union Pacific in a report on Friday, July 24th. Two investment analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have issued a Hold rating to the company’s stock. Based on data from MarketBeat, Union Pacific currently has a consensus rating of “Moderate Buy” and an average price target of $325.72.
View Our Latest Report on Union Pacific
About Union Pacific (Get Free Report)
Union Pacific Corporation (NYSE: UNP) is a freight railroad company that operates one of the largest rail networks in North America. Through its principal subsidiary, Union Pacific Railroad, the company provides transportation services for businesses across the western two-thirds of the United States.
Union Pacific transports a broad range of commodities and manufactured goods, including agricultural products, automotive vehicles and parts, chemicals, coal, industrial products, forest products, and intermodal containers.
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Union Pacific (UNP -0.23%) is on the precipice of a game-changing $85 billion merger with Norfolk Southern (NSC -0.04%). The deal would make Union Pacific the first transcontinental railroad in the U.S., with more than 52,000 miles of track.
The merger is not a slam dunk. It has to pass muster with the Surface Transportation Board, with a decision expected sometime next year. A coalition of labor, competitors, and farm groups opposes the merger. The concern is that the merger would create a de facto monopoly and eliminate competition. On the positive side, it could also lead to lower freight costs for shippers and reduced pollution by reducing the need for interstate trucking with single-line coast-to-coast rail service.
The stock is up more than 19% so far this year, and billionaires Chris Hohn, Ken Griffin, and Bill Gates are all among the major owners of Union Pacific through the investment firms they control. Griffin, who owns Citadel, is Union Pacific's leading shareholder, with 2,675,693 shares. Hohn, who owns TCI Fund Management, owns 4,032 shares of the railroad, and Gates, through Cascades, owns 3,435 shares of Union Pacific.
Like most railroads, Union Pacific isn't a high-profile growth stock, but it has a huge economic moat, and the merger would supercharge its potential while trimming transit times by 24 to 48 hours for more than 1 million intermodal loads annually and eliminating roughly 2.1 million truck trips per year, the company said.
Here are three reasons why the stock may make sense for retail investors, not just billionaires.
Image source: Getty Images.
1. Steady growth, solid balance sheet In the second quarter, Union Pacific reported record numbers, including operating revenue of $6.86 billion, up 12% over the same period a year ago; net income of $2 billion, up 6% year over year; and adjusted earnings per share (EPS) of $3.41, up 13% over the same period last year.
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The company raised guidance for reported EPS growth to the high single digits this year, consistent with its goals of single- to low-double-digit compound annual growth through 2027.
Because rail remains the most cost-effective way to move bulk commodities, grain, and industrial products over long distances, Union Pacific retains strong pricing power that consistently outpaces inflation.
2. An above-average dividend that is safe The industrial company raised its quarterly dividend by 2.8% this year, the 20th consecutive year it has increased it. The yield on that dividend is 2.01%, and the payout ratio is a safe 50.1%.
The dividend is well protected. Union Pacific reported six-month cash from operations of $5.5 billion, up 21%, year over year. The company has made its dividend even safer by trimming its debt-to-earnings before interest, taxes, depreciation, and amortization (EBITDA) ratio over the past three years.
3. The company already has a huge moat Its merger with Norfolk Southern would mean Union Pacific would operate in 43 states, across more than 52,000 miles of track and serving more than 100 ports. Despite the pushback against the deal, it is likely to be approved because of its benefits to U.S. supply lines, a weakness that emerged during the COVID-19 pandemic. It could also cut costs and improve delivery speeds for essential items, including food.
Even if the deal doesn't go through, Union Pacific is the nation's largest freight railroad, and there's no Class I competitor in sight because of the expense and complications involved in matching its 32,000 miles of track.
The company's network connects Gulf Coast ports to the West Coast and to six leading Mexican routes. That makes it a prime beneficiary of long-term nearshoring trends and North American freight traffic. The company's strong cash flow from operations gives it ample leverage to grow, including pursuing a multibillion-dollar merger.
If you are looking for a stock that has a solid history of beating earnings estimates and is in a good position to maintain the trend in its next quarterly report, you should consider Union Pacific (UNP - Free Report) . This company, which is in the Zacks Transportation - Rail industry, shows potential for another earnings beat.
When looking at the last two reports, this railroad has recorded a strong streak of surpassing earnings estimates. The company has topped estimates by 4.68%, on average, in the last two quarters.
For the last reported quarter, Union Pacific came out with earnings of $3.41 per share versus the Zacks Consensus Estimate of $3.2 per share, representing a surprise of 6.56%. For the previous quarter, the company was expected to post earnings of $2.85 per share and it actually produced earnings of $2.93 per share, delivering a surprise of 2.81%.
Price and EPS Surprise
With this earnings history in mind, recent estimates have been moving higher for Union Pacific. In fact, the Zacks Earnings ESP (Expected Surprise Prediction) for the company is positive, which is a great sign of an earnings beat, especially when you combine this metric with its nice Zacks Rank.
Our research shows that stocks with the combination of a positive Earnings ESP and a Zacks Rank #3 (Hold) or better produce a positive surprise nearly 70% of the time. In other words, if you have 10 stocks with this combination, the number of stocks that beat the consensus estimate could be as high as seven.
The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a version of the Zacks Consensus whose definition is related to change. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.
Union Pacific currently has an Earnings ESP of +0.29%, which suggests that analysts have recently become bullish on the company's earnings prospects. This positive Earnings ESP when combined with the stock's Zacks Rank #3 (Hold) indicates that another beat is possibly around the corner. We expect the company's next earnings report to be released on October 22, 2026.
When the Earnings ESP comes up negative, investors should note that this will reduce the predictive power of the metric. But, a negative value is not indicative of a stock's earnings miss.
Many companies end up beating the consensus EPS estimate, though this is not the only reason why their shares gain. Additionally, some stocks may remain stable even if they end up missing the consensus estimate.
Because of this, it's really important to check a company's Earnings ESP ahead of its quarterly release to increase the odds of success. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.
First on FOX Business: Two of the country’s largest freight rail companies are hoping federal regulators fast-track their merger.
Union Pacific is seeking to acquire Norfolk Southern in an $85 billion deal that would create the nation’s first transcontinental railroad, including 50,000 miles of track across almost every state.
The merger is awaiting approval from the Surface Transportation Board (STB), an independent federal agency tasked with regulating the rail industry.
"We know that the process through the STB, even though it’s... crazy long, they'll get to the right decision," Union Pacific CEO told FOX Business in an exclusive interview. "And the right decision is, you have to do what's better for the country and more opportunity to move ahead and not look backwards."
UNION PACIFIC, NORFOLK SOUTHERN MERGE CREATING FIRST US TRANSCONTINENTAL RAILROAD
Union Pacific is seeking to acquire Norfolk Southern in an $85 billion deal that would create the nation’s first transcontinental railroad. (Brandon Bell/Getty Images)
The two rail giants contend that the merger would allow them to compete with the trucking industry, leading to lower prices, more jobs and greater efficiency.
Right now, if a customer wants to get goods from the West Coast to the East Coast, the freight often undergoes an interchange delay. Vena says combining Union Pacific's and Norfolk Southern’s tracks would save customers 24 to 48 hours in an industry in which time is money.
UNION PACIFIC’S ‘BIG BOY’ HITS THE RAILS AS AMERICA TURNS 250
But several labor unions, farm groups and the rail companies’ competitors oppose the merger.
"This merger, if approved, would place nearly half of the nation's rail traffic under the control of a single company," the Stop the Rail Merger Coalition wrote in a letter to the Trump administration in August. "As a result, it would harm American farmers, domestic manufacturers, energy producers, and railroad workers, while driving up costs for consumers and putting critical supply chains at risk."
The two rail giants contend that the merger would allow them to compete with the trucking industry, leading to lower prices, more jobs and greater efficiency. (Getty Images)
CALIFORNIA HIGH-SPEED RAIL CONSULTANTS BILLED TAXPAYERS FOR A PRIVATE PLANE, TIKI BARS AND CIGAR LOUNGES
Vena disputes their claims, adding, "in the business world, if they thought we were doing something illogical and it made no sense, they would just stay quiet… and let us fail, but we're not failing. That's what they're worried about. We're gonna have a better product, lower price, more capability to move and win in the marketplace."
To combat concerns over job losses, the company is promising all unionized employees at the time the deal closes that they will have a job for life.
Ticker Security Last Change Change % UNP UNION PACIFIC CORP. 277.06 -1.22 -0.44% NSC NORFOLK SOUTHERN CORP. 316.23 -1.21 -0.38% "Your job might change slightly, but it means that you don't have to worry about the merger happening and you not being a part of the organization anymore," said Karl Joost, a conductor based at one of Union Pacific’s rail yards in the Chicago suburbs.
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President Donald Trump supports the $85 billion merger of two of the country’s largest railroad companies, but the companies are still waiting for the OK from the STB. A final decision is expected next year.
When asked how confident he is that the merger will be approved, Vena said: "You always have to have a little bit of doubt, but I'm 99.99%."
Eastern Bank increased its holdings in Union Pacific Corporation (NYSE:UNP – Free Report) by 2.6% in the third quarter, according to its most recent 13F filing with the Securities and Exchange Commission (SEC). The institutional investor owned 214,567 shares of the railroad operator’s stock after buying an additional 5,380 shares during the quarter. Eastern Bank’s holdings in Union Pacific were worth $58,390,000 at the end of the most recent reporting period.
Several other large investors have also recently added to or reduced their stakes in the business. Greenwich Wealth Management LLC increased its holdings in shares of Union Pacific by 14.4% during the second quarter. Greenwich Wealth Management LLC now owns 2,040 shares of the railroad operator’s stock valued at $555,000 after purchasing an additional 257 shares during the period. QRG Capital Management Inc. raised its stake in shares of Union Pacific by 9.4% during the second quarter. QRG Capital Management Inc. now owns 102,949 shares of the railroad operator’s stock valued at $28,002,000 after purchasing an additional 8,842 shares in the last quarter. Envestnet Portfolio Solutions Inc. lifted its holdings in Union Pacific by 3.2% in the second quarter. Envestnet Portfolio Solutions Inc. now owns 80,345 shares of the railroad operator’s stock worth $21,854,000 after purchasing an additional 2,506 shares during the period. Envestnet Asset Management Inc. lifted its holdings in Union Pacific by 34.5% in the second quarter. Envestnet Asset Management Inc. now owns 2,583,702 shares of the railroad operator’s stock worth $702,765,000 after purchasing an additional 662,335 shares during the period. Finally, State Street Corp grew its position in Union Pacific by 4.9% in the 2nd quarter. State Street Corp now owns 27,890,598 shares of the railroad operator’s stock valued at $7,586,243,000 after buying an additional 1,302,732 shares in the last quarter. 80.38% of the stock is currently owned by institutional investors and hedge funds.
Analysts Set New Price Targets Several equities analysts have commented on the stock. The Goldman Sachs Group set a $317.00 target price on shares of Union Pacific and gave the company a “neutral” rating in a research note on Thursday, July 23rd. Citigroup increased their price objective on shares of Union Pacific from $326.00 to $349.00 and gave the company a “buy” rating in a report on Friday, July 24th. Bank of America raised their price objective on shares of Union Pacific from $301.00 to $334.00 and gave the company a “buy” rating in a research note on Thursday, July 23rd. Citizens Jmp began coverage on Union Pacific in a report on Wednesday, July 15th. They set an “outperform” rating and a $350.00 target price on the stock. Finally, BMO Capital Markets restated a “market perform” rating and issued a $320.00 target price (up from $285.00) on shares of Union Pacific in a research report on Friday, July 24th. Two analysts have rated the stock with a Strong Buy rating, fifteen have issued a Buy rating and four have assigned a Hold rating to the stock. According to data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $326.33.
Check Out Our Latest Stock Analysis on UNP Union Pacific Price Performance Shares of UNP traded down $0.52 during mid-day trading on Monday, hitting $277.76. The company’s stock had a trading volume of 516,487 shares, compared to its average volume of 3,005,233. The firm has a 50-day moving average price of $290.29 and a 200 day moving average price of $273.86. The stock has a market capitalization of $165.01 billion, a price-to-earnings ratio of 22.50, a PEG ratio of 2.77 and a beta of 0.95. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.99 and a quick ratio of 0.82. Union Pacific Corporation has a fifty-two week low of $215.53 and a fifty-two week high of $315.99.
Union Pacific (NYSE:UNP – Get Free Report) last released its earnings results on Thursday, July 23rd. The railroad operator reported $3.41 EPS for the quarter, topping analysts’ consensus estimates of $3.26 by $0.15. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The business had revenue of $6.86 billion for the quarter, compared to the consensus estimate of $6.72 billion. During the same period in the previous year, the firm earned $3.03 EPS. The business’s revenue for the quarter was up 11.5% on a year-over-year basis. On average, research analysts predict that Union Pacific Corporation will post 13.01 EPS for the current fiscal year.
Union Pacific Increases Dividend The business also recently declared a quarterly dividend, which was paid on Wednesday, September 30th. Shareholders of record on Monday, August 31st were issued a $1.42 dividend. This is an increase from Union Pacific’s previous quarterly dividend of $1.38. This represents a $5.68 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend was Monday, August 31st. Union Pacific’s dividend payout ratio is currently 45.99%.
Union Pacific Company Profile (Free Report)
Union Pacific Corporation (NYSE: UNP) is a freight railroad company that operates one of the largest rail networks in North America. Through its principal subsidiary, Union Pacific Railroad, the company provides transportation services for businesses across the western two-thirds of the United States.
Union Pacific transports a broad range of commodities and manufactured goods, including agricultural products, automotive vehicles and parts, chemicals, coal, industrial products, forest products, and intermodal containers.
Read More Five stocks we like better than Union Pacific What a $1 Billion Chip Deal Says About Amazon’s AI Ambitions 3 Stocks Benefiting From AI Demand Just Announced Major Buybacks Insiders Are Selling These 3 Stocks, Should You? Datadog’s Rally Has Insiders Selling—Can It Keep Climbing? Want to see what other hedge funds are holding UNP? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Union Pacific Corporation (NYSE:UNP – Free Report).
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After a six-year hiatus, Union Pacific's Living Legend No. 844 is returning to the rails. The legendary steam locomotive will join Big Boy No. 4014 for Union Pa
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But when you're an income investor, your primary focus is generating consistent cash flow from each of your liquid investments.
Cash flow can come from bond interest, interest from other types of investments, and, of course, dividends. A dividend is that coveted distribution of a company's earnings paid out to shareholders, and investors often view it by its dividend yield, a metric that measures the dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Union Pacific (UNP - Free Report) is headquartered in Omaha, and is in the Transportation sector. The stock has seen a price change of 17.77% since the start of the year. Currently paying a dividend of $1.42 per share, the company has a dividend yield of 2.09%. In comparison, the Transportation - Rail industry's yield is 0.89%, while the S&P 500's yield is 1.44%.
Looking at dividend growth, the company's current annualized dividend of $5.68 is up 4.4% from last year. Over the last 5 years, Union Pacific has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Union Pacific's current payout ratio is 45%, meaning it paid out 45% of its trailing 12-month EPS as dividend.
Earnings growth looks solid for UNP for this fiscal year. The Zacks Consensus Estimate for 2026 is $13.01 per share, representing a year-over-year earnings growth rate of 11.58%.
Investors like dividends for a variety of different reasons, from tax advantages and decreasing overall portfolio risk to considerably improving stock investing profits. However, not all companies offer a quarterly payout.
High-growth firms or tech start-ups, for example, rarely provide their shareholders a dividend, while larger, more established companies that have more secure profits are often seen as the best dividend options. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UNP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Union Pacific is rated a hold, reflecting strong recent execution but significant merger-related uncertainty and paused buybacks. UNP posted record Q1 and Q2 2026 results, raising full-year EPS guidance twice, yet shares have technically broken down and lagged operating momentum. The pending Norfolk Southern merger faces a lengthy regulatory review into late 2027, pausing buybacks and introducing headline risk.
Key Takeaways Union Pacific launched two FLXdrive battery-electric locomotives in Southern California for testing.Two more Union Pacific locomotives are due in October 2026, completing a four-unit Los Angeles fleet.Each FLXdrive stores nearly 2.7 MWh and uses almost 7,000 battery cells. In a bid to strengthen its position in the railroad industry, Union Pacific (UNP - Free Report) announced the launch of two battery-electric locomotives in Southern California. The move comes as part of Union Pacific’s ongoing investments in testing next-generation technologies in real-world operating environments.
The locomotives are the first of four FLXdrivebattery-electric units manufactured by Wabtec Corporation (WAB - Free Report) and ordered by Union Pacific. Two additional locomotives are slated to be delivered in October 2026, thereby completing the four-unit fleet which is expected to operate in the greater Los Angeles area. Each locomotive offers nearly 2.7 megawatt-hours (MWh) of energy storage and generates zero tailpipe emissions during operation.
Powered by almost 7,000 battery cells, the FLXdrive will undergo extensive testing in a variety of railroad operations, including switching and providing local customer service.
Union Pacific’s chief executive officer, Jim Vena, stated, "Union Pacific has never been content to stand still. Our industry is constantly evolving, and if we're not exploring what's next, we risk being left behind. Testing technologies like battery-electric locomotives help us to better understand what's possible by putting these emerging technologies to work in actual railroad operations.”
To ConcludeThe deployment of FLXdrive in daily operations is expected to provide Union Pacific with real-world insights and valuable real-world data on the technology’s performance, reliability and operational capabilities. This shall help UNP assess the battery-electric technology’s potential to improve efficiency and support longer-term fleet modernization.
Rail remains one of the most fuel-efficient modes of overland freight transportation, capable of moving one ton of freight nearly 500 miles on a single gallon of fuel. Union Pacific’s battery-electric locomotive evaluation supports its broader push to modernize operations, improve efficiency and potentially lower greenhouse gas emissions, reinforcing the railroad’s long-term cost and sustainability goals for freight transportation.
Zacks Rank and Stocks to ConsiderUnion Pacific carries a Zacks Rank #3 (Hold).
Investors interested in the Zacks Transportation sector may consider Seanergy Maritime Holdings (SHIP - Free Report) and Schneider National, Inc. (SNDR - Free Report) .
Seanergy Maritime Holdings currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
SHIP has an expected earnings growth rate of more than 100% for the current year. The company has an encouraging earnings surprise history. Its earnings topped the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 38%.
Schneider presently carries a Zacks Rank #2 (Buy).
Schneider has an expected earnings growth rate of 65.08% for the current year. Schneider’s earnings outpaced the Zacks Consensus Estimate in two of the trailing four quarters (missed the mark in the remaining two quarters), delivering an average miss of 10.01%. The Zacks Consensus Estimate for Schneider’s full-year earnings has moved 14.29% north in the past 60 days.
OMAHA, Neb.--(BUSINESS WIRE)--Union Pacific Railroad today announced the arrival of two battery-electric locomotives in Southern California, part of the company's ongoing investments in testing next-generation technologies in real-world, operating environments. The locomotives are the first of four FLXdrive battery-electric units built by Wabtec and ordered by Union Pacific. Two additional locomotives are scheduled to arrive in October, completing the four-unit fleet that will operate in the Gr.
OMAHA, Neb. & ATLANTA--(BUSINESS WIRE)--Union Pacific Corporation (NYSE: UNP) and Norfolk Southern Corporation (NYSE: NSC) today acknowledged two significant milestones in the creation of America's first transcontinental railroad, which will eliminate time-consuming interchanges between railroads and strengthen the nation's supply chain. The Surface Transportation Board (STB) has unanimously denied merger opponents' requests to dismiss the companies' revised merger application. With the rejecti.
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Union Pacific, Brookfield Corp., and Amazon.com, Inc. form a robust foundation for a Buffett-like, diversified portfolio built for long-term growth. UNP offers a near-irreplicable rail network, cyclical exposure to the U.S. economy, and a 20-year dividend growth streak, with potential upside from the Norfolk Southern merger. BN provides unmatched diversification, targeting 20% annual distributable EPS growth, trading at just 6x 2030 expectations, and benefits from asset-light subsidiaries like BAM.
OMAHA, Neb.--(BUSINESS WIRE)--In another historic first, Union Pacific's Big Boy No. 4014 will take to the rails this November for a limited holiday tour in support of the Make-A-Wish Foundation, with the world's largest operating steam locomotive set to be on display Nov. 21 in the Denver, Colorado, area. This will be Big Boy's first-ever holiday tour and comes several months after the beloved 1941-era steam locomotive completed its historic coast-to-coast tour from California to New York, cul.
Union Pacific Corp (NYSE:UNP, XETRA:UNP) received a UBS upgrade to Buy from Neutral as the broker forecast stronger 2027 growth, excluding potential NSC merger benefits from its base case.
UBS raised its price target from $310 to $339, applying an unchanged multiple of 21 times its 2028 earnings forecast of $16.15 per share.
The bank expects intermodal volumes to grow 6% to 7% in 2027, citing current volume momentum and the relationship between intermodal performance and truckload pricing cycles.
Alongside industrial growth and a roughly neutral contribution from coal and grain, those intermodal gains underpin UBS’s forecast for 3.5% total volume growth in 2027.
Low inventories should support steel shipments, while elevated energy prices should sustain petroleum and products volumes, the broker said.
UBS expects pricing and freight mix to offset inflation, with volume growth and productivity gains helping lift 2027 earnings before interest and taxes by 10%.
Its earnings forecasts of $13.41 per share for 2026 and $14.90 for 2027 exceed market consensus by 3% and 5%, respectively.
With a merger, UBS estimates 2030 earnings of $19.40 to $21.90 per share, supporting upside valuations of $475 at year-end 2029 or $393 discounted back two years.
That upside assumes midpoint earnings and a four-point increase in the earnings multiple, but merger approval remains uncertain as UBS anticipates a challenging regulatory review.
This Corner of the Market Is Outperforming the Benchmark—And It's Not AIUnion Pacific NYSE: UNP CEO Jim Vena said the railroad is seeing broad-based volume growth in the current quarter while maintaining service levels, though rising fuel prices could pressure its operating ratio in the near term.
Speaking alongside Chief Financial Officer Jennifer Hamann at an investor event, Vena said carloads were up about 5% during the quarter, with industrial volume up 5.2% month to date. He said the company’s car velocity had returned to the “mid-230s” and terminal dwell was below 20 hours, indicating the network is handling higher freight volumes without a deterioration in service.
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Buffett Spent 60 Years Ignoring Tech and the Bill Is Coming Due“We are handling the increase in business without degrading our service product,” Vena said, adding that the railroad remains focused on bringing on profitable business rather than managing solely toward an operating-ratio target.
Industrial, Grain and Intermodal Drive Demand Hamann said industrial demand has been broad-based across multiple segments. Bulk volume was down about 1%, largely reflecting weak coal demand tied to low natural-gas prices, but grain demand has been strong entering the Midwest harvest season.
AI Broke the Trucks: 3 Transports to Buy After the AI PanicDomestic intermodal remains the largest contributor to quarterly growth, Hamann said. She described it as good business for the railroad and said Union Pacific could record its fifth consecutive quarter of year-over-year domestic intermodal records.
The company is also seeing some benefit from trucking-market capacity constraints and higher trucking costs. Hamann said the rail industry’s fuel-efficiency advantage relative to trucks appears to be contributing to freight conversions to rail, in addition to cyclical demand changes.
However, Vena cautioned that higher fuel prices are ultimately not favorable for the broader economy. “We sure don’t want to damage, and have the economy damaged by having high fuel prices,” he said, though he added that the company had not yet seen a material slowdown in most freight categories.
Fuel Costs Could Weigh on Operating Ratio Hamann said Union Pacific expected third-quarter fuel prices to average roughly $4.25 per gallon, while current prices were closer to $5.20 to $5.30 per gallon. She said fuel increased the company’s operating ratio by approximately 120 basis points in the second quarter and could have an impact of that size or greater in the third quarter.
Union Pacific uses contractual and tariff-based fuel surcharge programs, Hamann said, while the company also has applied lane-specific peak-season surcharges in intermodal markets with tight capacity.
On pricing, Hamann said longer-term intermodal contracts contain flexibility that has supported volumes but may cause pricing gains to lag. Spot-market bid activity occurs primarily in the spring, and she said a stronger pricing environment could benefit results more significantly in the back half of 2027 if current market conditions persist.
Capacity and Technology Investments Vena said the company has substantial available network capacity following investments made since 2019. Union Pacific currently operates with more business than it did in 2019 while running 24% fewer trains, he said. The railroad has also invested about $1.2 billion over the past eight or nine years to expand intermodal capacity.
The company continues to invest in terminal and operating technology, including gate systems designed to speed truck access, terminal tools intended to improve switching productivity, and upgraded dispatch and network-control systems. Hamann said Union Pacific is developing technology that could increasingly automate terminal decisions and crew instructions.
Vena also pointed to a planned “dynamic operating plan” that would allow the railroad to adjust train operations more quickly as business conditions change.
CEO Highlights Merger Process and Competition Vena said the Surface Transportation Board had moved the company’s proposed merger process forward after accepting the application on May 28. He said the next stage would require parties opposing the transaction to provide detailed arguments and that he expects a decision timeline around May 28 of the following year, followed by 30 days for a decision.
He said Union Pacific had received support letters from more than 2,000 groups or individuals, including more than 500 customers. Vena also discussed an agreement with Canadian National that he said would address track concentration and terminal issues while expanding CN’s ability to move freight between Canada and Mexico through Memphis.
Vena argued that a single-line railroad spanning more of the country would provide faster service, fewer handoffs and lower costs than multi-railroad moves. He also said autonomous trucking represents a competitive development railroads must address rather than ignore, noting that the technology is already operating with drivers present.
“If we stay the same, we just lose business,” Vena said.
About Union Pacific (NYSE:UNP)Union Pacific Corporation is a transportation company that operates Union Pacific Railroad, one of the largest freight railroad networks in the United States. The company provides rail transportation and logistics services for a broad range of commodities, including agricultural products, automotive goods, chemicals, coal, industrial products, and intermodal shipments.
Union Pacific's railroad network serves the western two-thirds of the United States, connecting major markets and ports across approximately 23 states.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Union Pacific Corporation (UNP) Morgan Stanley's 14th Annual Laguna Conference September 16, 2026 12:15 PM EDT
Company Participants
Vincenzo Vena - CEO & Director
Jennifer Hamann - Executive VP & CFO
Conference Call Participants
Ravi Shanker - Morgan Stanley, Research Division
Presentation
Ravi Shanker
Morgan Stanley, Research Division
Good news. I found Mr. Jim Vena...
Vincenzo Vena
CEO & Director
Pardon me?
Ravi Shanker
Morgan Stanley, Research Division
I said I found you, you're working the room, that's pretty amazing. Great. So let's keep the transport content going. Very happy to welcome back to Laguna, Union Pacific Railroad CEO, Jim Vena. Welcome back, sir; and CFO, Jennifer Hamann. Thanks so much. Tons going on. I know we have some slides out and there are QR codes on your desks for you to access the slides. But Jim, I don't know if you want to start with some opening comments and maybe walk through what's in.
Vincenzo Vena
CEO & Director
Yes. Ravi, listen, thank you very much, and good morning, and I had a chance to say hi and good morning to a number of you. I would have rather done that than this, okay? And we could talk personally, but that's okay. Ravi, thanks for inviting me. What a wonderful place. I had the team, Diana and Jennifer, I hope for run walk this morning, and I got them to drop down and give me 10 pushups, and I was down there with them. I don't think they'll ever do it with me again. So we went down to the beach, went for a walk, Diana was saying, that's a pretty good pace. And then I said, let's drop down and do 10 and we did 10 and then coming back up, we ran up a piece of the hill and let's drop down and do 5. So that's it, Ravi. You better move the conference. They will come with me, okay?
Union Pacific (UNP.N) on Wednesday said soaring diesel prices were prompting some shippers to move freight from trucks to rail, boosting demand for the railroad as customers seek lower transportation costs.
Speaking at the Morgan Stanley Laguna Conference, Chief Financial Officer Jennifer Hamann said the railroad was beginning to see customers make the shift because of the fuel-efficiency advantage, providing an additional boost beyond broader cyclical improvements in freight demand.
Union Pacific expects diesel fuel costs to average about $4.25 a gallon in the third quarter, but is currently paying about $5.25 to $5.30 a gallon, creating pressure on its operating ratio, Hamann said.
Despite higher fuel costs, Union Pacific said its underlying business remained robust, with broad-based strength in industrial shipments and intermodal traffic continuing to drive volume growth during the quarter.
The company is yet to see significant demand destruction from higher energy costs, with customers still "pretty bullish," Hamann said, citing healthy order books and inventory trends that point to continued freight demand.
CEO Jim Vena said elevated fuel prices were not ideal for the broader economy, but noted the railroad has not seen a slowdown in shipments so far.
Whether it's through stocks, bonds, ETFs, or other types of securities, all investors love seeing their portfolios score big returns. But for income investors, generating consistent cash flow from each of your liquid investments is your primary focus.
While cash flow can come from bond interest or interest from other types of investments, income investors hone in on dividends. A dividend is the distribution of a company's earnings paid out to shareholders; it's often viewed by its dividend yield, a metric that measures a dividend as a percent of the current stock price. Many academic studies show that dividends account for significant portions of long-term returns, with dividend contributions exceeding one-third of total returns in many cases.
Based in Omaha, Union Pacific (UNP - Free Report) is in the Transportation sector, and so far this year, shares have seen a price change of 22.77%. The railroad is paying out a dividend of $1.42 per share at the moment, with a dividend yield of 2% compared to the Transportation - Rail industry's yield of 0.87% and the S&P 500's yield of 1.42%.
Looking at dividend growth, the company's current annualized dividend of $5.68 is up 4.4% from last year. Over the last 5 years, Union Pacific has increased its dividend 3 times on a year-over-year basis for an average annual increase of 7.19%. Looking ahead, future dividend growth will be dependent on earnings growth and payout ratio, which is the proportion of a company's annual earnings per share that it pays out as a dividend. Union Pacific's current payout ratio is 45%, meaning it paid out 45% of its trailing 12-month EPS as dividend.
Looking at this fiscal year, UNP expects solid earnings growth. The Zacks Consensus Estimate for 2026 is $13.02 per share, which represents a year-over-year growth rate of 11.66%.
Investors like dividends for many reasons; they greatly improve stock investing profits, decrease overall portfolio risk, and carry tax advantages, among others. It's important to keep in mind that not all companies provide a quarterly payout.
Big, established firms that have more secure profits are often seen as the best dividend options, but it's fairly uncommon to see high-growth businesses or tech start-ups offer their stockholders a dividend. Income investors must be conscious of the fact that high-yielding stocks tend to struggle during periods of rising interest rates. With that in mind, UNP is a compelling investment opportunity. Not only is it a strong dividend play, but the stock currently sits at a Zacks Rank of #3 (Hold).
Top Wall Street analysts changed their outlook on these top names. For a complete view of all analyst rating changes, including upgrades, downgrades and initiations, please see our analyst ratings page.
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OMAHA, Neb.--(BUSINESS WIRE)--Jim Vena, chief executive officer and Jennifer Hamann, executive vice president and chief financial officer, of Union Pacific Corporation (NYSE: UNP) will address the Morgan Stanley 14th Annual Laguna Conference on Wednesday, Sept. 16, 2026, at 12:15 p.m. ET.
A live webcast of the presentation will be available in the investor relations section of Union Pacific’s website at https://investor.unionpacific.com. A replay of the audio webcast will be available shortly thereafter.
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.
Allworth Financial LP decreased its position in shares of Union Pacific Corporation (NYSE:UNP – Free Report) by 25.1% in the second quarter, according to the company in its most recent Form 13F filing with the Securities & Exchange Commission. The institutional investor owned 51,370 shares of the railroad operator’s stock after selling 17,231 shares during the period. Allworth Financial LP’s holdings in Union Pacific were worth $13,973,000 at the end of the most recent reporting period.
Other large investors have also recently made changes to their positions in the company. California State Teachers Retirement System boosted its stake in Union Pacific by 29,250.5% during the second quarter. California State Teachers Retirement System now owns 247,700,336 shares of the railroad operator’s stock valued at $67,374,491,000 after buying an additional 246,856,396 shares during the last quarter. State Street Corp increased its stake in Union Pacific by 4.3% in the 4th quarter. State Street Corp now owns 26,330,080 shares of the railroad operator’s stock worth $6,090,674,000 after acquiring an additional 1,082,285 shares during the last quarter. Capital World Investors raised its holdings in shares of Union Pacific by 92.1% during the 4th quarter. Capital World Investors now owns 20,136,349 shares of the railroad operator’s stock worth $4,658,142,000 after acquiring an additional 9,655,306 shares in the last quarter. Geode Capital Management LLC raised its holdings in shares of Union Pacific by 2.0% during the 4th quarter. Geode Capital Management LLC now owns 15,360,668 shares of the railroad operator’s stock worth $3,552,550,000 after acquiring an additional 296,814 shares in the last quarter. Finally, Bank of America Corp DE boosted its position in shares of Union Pacific by 0.4% during the 2nd quarter. Bank of America Corp DE now owns 14,527,563 shares of the railroad operator’s stock valued at $3,951,497,000 after acquiring an additional 64,492 shares during the last quarter. 80.38% of the stock is owned by institutional investors.
Union Pacific Stock Performance NYSE:UNP opened at $288.68 on Wednesday. The stock’s fifty day moving average is $294.62 and its 200 day moving average is $271.35. Union Pacific Corporation has a fifty-two week low of $210.84 and a fifty-two week high of $315.99. The firm has a market capitalization of $171.50 billion, a PE ratio of 23.37, a PEG ratio of 2.88 and a beta of 0.96. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.82 and a current ratio of 0.99.
Union Pacific (NYSE:UNP – Get Free Report) last issued its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $3.26 by $0.15. Union Pacific had a return on equity of 38.46% and a net margin of 28.85%.The company had revenue of $6.86 billion during the quarter, compared to the consensus estimate of $6.72 billion. During the same period last year, the company earned $3.03 earnings per share. Union Pacific’s revenue was up 11.5% on a year-over-year basis. On average, sell-side analysts anticipate that Union Pacific Corporation will post 13.02 earnings per share for the current year. Union Pacific Increases Dividend The company also recently declared a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, August 31st will be paid a dividend of $1.42 per share. The ex-dividend date of this dividend is Monday, August 31st. This represents a $5.68 dividend on an annualized basis and a dividend yield of 2.0%. This is a boost from Union Pacific’s previous quarterly dividend of $1.38. Union Pacific’s dividend payout ratio is presently 45.99%.
Analysts Set New Price Targets A number of research firms recently weighed in on UNP. Barclays reissued an “overweight” rating and issued a $350.00 target price (up from $315.00) on shares of Union Pacific in a report on Friday, July 24th. Benchmark increased their price objective on shares of Union Pacific from $325.00 to $335.00 and gave the company a “buy” rating in a research report on Friday, July 24th. Citigroup lifted their price objective on shares of Union Pacific from $326.00 to $349.00 and gave the stock a “buy” rating in a research note on Friday, July 24th. The Goldman Sachs Group set a $317.00 target price on shares of Union Pacific and gave the stock a “neutral” rating in a report on Thursday, July 23rd. Finally, Wells Fargo & Company reaffirmed an “overweight” rating and issued a $335.00 price target (up from $315.00) on shares of Union Pacific in a report on Friday, July 24th. Two research analysts have rated the stock with a Strong Buy rating, fourteen have assigned a Buy rating and six have issued a Hold rating to the company’s stock. According to MarketBeat.com, the stock has an average rating of “Moderate Buy” and an average price target of $320.89.
Read Our Latest Research Report on Union Pacific
Union Pacific Profile (Free Report)
Union Pacific Corporation is a transportation company that operates Union Pacific Railroad, one of the largest freight railroad networks in the United States. The company provides rail transportation and logistics services for a broad range of commodities, including agricultural products, automotive goods, chemicals, coal, industrial products, and intermodal shipments.
Union Pacific’s railroad network serves the western two-thirds of the United States, connecting major markets and ports across approximately 23 states.
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Union Pacific (UNP - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.
The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.
Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.
As such, the Zacks rating upgrade for Union Pacific is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price.
Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, and the near-term price movement of its stock are proven to be strongly correlated. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.
Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Union Pacific imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.
Harnessing the Power of Earnings Estimate RevisionsEmpirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.
The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .
Earnings Estimate Revisions for Union PacificThis railroad is expected to earn $13.02 per share for the fiscal year ending December 2026, which represents no year-over-year change.
Analysts have been steadily raising their estimates for Union Pacific. Over the past three months, the Zacks Consensus Estimate for the company has increased 3.9%.
Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.
You can learn more about the Zacks Rank here >>>
The upgrade of Union Pacific to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.
Union Pacific Corporation (UNP) Discusses State of the Railroad and Progress on UPO Southern Merger September 1, 2026 1:00 PM EDT
Company Participants
Vincenzo Vena - CEO & Director
Jennifer Hamann - Executive VP & CFO
Conference Call Participants
David Vernon - Bernstein Institutional Services LLC, Research Division
Presentation
David Vernon
Bernstein Institutional Services LLC, Research Division
All right. Good afternoon, everyone, and thank you for joining us. My name is David Vernon. I'm the Bernstein analyst covering transports, railroads, airlines, all things freight and passenger related. We are thrilled to be hosting Union Pacific today for a bit of a fireside chat. We'll catch up on the state of the railroad and also talk about the sort of next steps in the UP Norfolk Southern merger. CEO, Jim Vena, CFO, Jennifer Hamann, are here joining us. They're going to kick us off with some prepared remarks. To the extent that you want to have some questions, work them into the chat, you can do that either through the Pigeonhole link that you should have had e-mailed to you when you're registered or you can try to hit me on Bloomberg, and I'll try to keep track of kind of where we are so that we can get as much client input into the conversation as we can.
With that, thank you both for joining us. I'm going to hand it over to you, and you can kick us off with some prepared remarks.
Vincenzo Vena
CEO & Director
Well, David, thank you very much, and great day here. I look outside and the weather is just perfect for September 1 for railroading anyways. That's the way I look at it. I don't really look at it on whether it's beach weather or holiday weather. It's how good is it for railroading and I like it, just about
Bank of Nova Scotia bought a new stake in Union Pacific Corporation (NYSE:UNP – Free Report) in the 2nd quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission. The fund bought 52,929 shares of the railroad operator’s stock, valued at approximately $14,397,000.
A number of other large investors have also recently made changes to their positions in UNP. Tucker Asset Management LLC acquired a new position in Union Pacific during the fourth quarter worth approximately $25,000. SWAN Capital LLC boosted its stake in Union Pacific by 2,575.0% during the 4th quarter. SWAN Capital LLC now owns 107 shares of the railroad operator’s stock worth $25,000 after purchasing an additional 103 shares during the period. Rachor Investment Advisory Services LLC purchased a new position in Union Pacific during the 4th quarter worth $25,000. High Point Wealth Management LLC purchased a new position in Union Pacific during the 4th quarter worth $26,000. Finally, Scarborough Advisors LLC acquired a new position in Union Pacific in the first quarter valued at $27,000. 80.38% of the stock is owned by institutional investors and hedge funds.
Analysts Set New Price Targets Several equities research analysts have commented on the stock. Weiss Ratings upgraded shares of Union Pacific from a “buy (b-)” rating to a “buy (b)” rating in a research report on Friday, July 24th. Citizens Jmp began coverage on shares of Union Pacific in a research report on Wednesday, July 15th. They set an “outperform” rating and a $350.00 target price on the stock. Royal Bank Of Canada restated an “outperform” rating and set a $339.00 target price (up from $289.00) on shares of Union Pacific in a research report on Friday, July 24th. JPMorgan Chase & Co. increased their target price on shares of Union Pacific from $304.00 to $334.00 and gave the company a “neutral” rating in a report on Friday, July 24th. Finally, TD Cowen reiterated a “buy” rating and set a $325.00 price target (up from $282.00) on shares of Union Pacific in a research report on Friday, July 24th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, Union Pacific presently has a consensus rating of “Moderate Buy” and an average target price of $320.89.
Check Out Our Latest Stock Analysis on Union Pacific Insiders Place Their Bets In other news, EVP Eric J. Gehringer sold 2,991 shares of the business’s stock in a transaction on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total value of $789,504.36. Following the completion of the transaction, the executive vice president directly owned 43,012 shares of the company’s stock, valued at $11,353,447.52. The trade was a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Insiders own 0.22% of the company’s stock.
Union Pacific Stock Performance NYSE:UNP opened at $309.83 on Tuesday. The company has a current ratio of 0.99, a quick ratio of 0.82 and a debt-to-equity ratio of 1.40. The company has a market capitalization of $184.06 billion, a P/E ratio of 25.09, a price-to-earnings-growth ratio of 3.14 and a beta of 0.96. The firm has a 50-day moving average price of $287.14 and a two-hundred day moving average price of $268.31. Union Pacific Corporation has a twelve month low of $210.84 and a twelve month high of $315.99.
Union Pacific (NYSE:UNP – Get Free Report) last announced its quarterly earnings results on Thursday, July 23rd. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.26 by $0.15. The company had revenue of $6.86 billion for the quarter, compared to the consensus estimate of $6.72 billion. Union Pacific had a net margin of 28.85% and a return on equity of 38.46%. The company’s revenue for the quarter was up 11.5% compared to the same quarter last year. During the same quarter in the prior year, the firm earned $3.03 earnings per share. As a group, research analysts expect that Union Pacific Corporation will post 12.93 earnings per share for the current fiscal year.
Union Pacific Increases Dividend The business also recently announced a quarterly dividend, which will be paid on Wednesday, September 30th. Investors of record on Monday, August 31st will be paid a $1.42 dividend. This represents a $5.68 dividend on an annualized basis and a yield of 1.8%. The ex-dividend date of this dividend is Monday, August 31st. This is an increase from Union Pacific’s previous quarterly dividend of $1.38. Union Pacific’s dividend payout ratio is currently 45.99%.
Union Pacific Company Profile (Free Report)
Union Pacific Corporation (NYSE: UNP) is one of the largest freight railroad companies in the United States. Its principal operating subsidiary, Union Pacific Railroad, has roots that trace back to the Pacific Railway Act of 1862 and the construction of the first transcontinental rail link completed in 1869. The company is headquartered in Omaha, Nebraska, and operates as a holding company for rail transportation and related services.
Union Pacific’s core business is the movement of freight by rail across an extensive rail network serving the western two‑thirds of the United States.
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OMAHA, Neb.--(BUSINESS WIRE)--Jim Vena, chief executive officer, and Jennifer Hamann, executive vice president and chief financial officer, of Union Pacific Corporation (NYSE: UNP) will participate in a virtual fireside chat, hosted by Bernstein Research on Tuesday, Sept. 1, 2026, at 1:00 p.m. ET. A live webcast of the presentation will be available in the investor relations section of Union Pacific's website at https://investor.unionpacific.com. A replay of the audio webcast will be available.
