UNP · Union Pacific Corporation

Union Pacific reported strong first-quarter 2026 results, with net income rising 5% to $1.7 billion and diluted EPS increasing 6% to $2.87 (adjusted EPS $2.93). The operating ratio improved 20 basis points to 60.5% (adjusted 59.9%), reflecting operational efficiencies and cost control. Freight revenue grew 4% to $5.9 billion, driven by core pricing gains and favorable business mix, partially offset by a 1% decline in carloads. Bulk volumes (up 17%) led growth, particularly coal & renewables (+27%) and grain (+14%), while premium (intermodal and automotive) declined 8% and 7%, respectively. Operating expenses rose 3%, with fuel costs up 7% due to higher prices, but fuel consumption rate improved 4%. Management highlighted record first-quarter operating revenue, operating income, and net income, and affirmed 2026 outlook for mid-single digit EPS growth, pricing above inflation, and continued operating ratio improvement. The company also reiterated its capital plan of $3.3 billion and consistent annual dividend increases. The results demonstrate Union Pacific's ability to drive productivity gains and pricing power despite a muted economic environment.