Union Pacific Corporation Q3 2026 Earnings Recap

Union Pacific’s 15% adjusted EPS growth and 6% volume increase were accompanied by a positive 3.6% stock reaction. Revenue growth was partly fuel-driven, and the reported operating ratio was 58.8%; excluding fuel-price effects and merger costs, the company said its core operating ratio improved 110 basis points year over year.

Key Takeaways

• Operating revenue rose 15% to $7.2 billion; freight revenue increased 15% to $6.8 billion on 6% volume growth.
• Higher fuel prices and related surcharges added 900 basis points to freight revenue. Fuel expense rose 69%, with the average price per gallon increasing from $2.56 to $4.21.
• Reported EPS was $3.49; adjusted EPS, excluding merger costs, was $3.53, up 15%. The reported operating ratio was 58.8%.
• Nearly 75% of volume growth came from domestic and international intermodal traffic; management said business mix masked pricing gains that exceeded inflation.
• Compensation and benefits expense rose 4%, while headcount fell 1% despite 6% volume growth, contributing to a ninth consecutive quarter of record workforce productivity.