Union Pacific (NYSE:UNP – Get Free Report) posted its quarterly earnings results on Thursday. The railroad operator reported $3.41 EPS for the quarter, beating the consensus estimate of $3.25 by $0.16, Briefing.com reports. Union Pacific had a net margin of 29.20% and a return on equity of 39.58%. The company had revenue of $6.86 billion for the quarter, compared to analyst estimates of $6.72 billion. During the same period in the prior year, the company earned $3.03 earnings per share. The firm’s revenue was up 11.5% on a year-over-year basis.
Here are the key takeaways from Union Pacific’s conference call:
- Union Pacific reported record second-quarter results, with operating revenue up 12% to $6.9 billion, net income of $2 billion, and adjusted EPS of $3.41, driven by 2% volume growth and stronger pricing.
- The company raised its full-year 2026 outlook to reported EPS growth in the high single-digit range, citing stronger-than-expected volume trends, continued productivity gains, and improved service execution.
- Fuel was a major headwind in the quarter, with higher diesel costs and fuel surcharges materially affecting both revenue and expense; management said fuel remains volatile and may continue to pressure operating ratio.
- Operational performance was a highlight, with record productivity and service metrics including 5% higher freight car velocity, 7% lower terminal dwell, and a 95% service performance index in both intermodal and manifest.
- Management emphasized that the Norfolk Southern merger is progressing, including STB approval milestones and a new settlement with Canadian National, which it says improves competitiveness and supports the case for the transaction.
Union Pacific Stock Up 0.3%
UNP opened at $305.25 on Friday. The stock has a market capitalization of $181.23 billion, a P/E ratio of 25.02, a price-to-earnings-growth ratio of 3.06 and a beta of 0.96. The business’s 50-day simple moving average is $274.38 and its 200-day simple moving average is $257.97. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.73 and a current ratio of 0.92. Union Pacific has a one year low of $210.84 and a one year high of $315.99.
Union Pacific Announces Dividend
Union Pacific News Summary
Here are the key news stories impacting Union Pacific this week:
- Positive Sentiment: Benchmark raised Union Pacific’s price target to $335 from $325 and reiterated a buy rating, implying further upside from current levels. Benchmark raises UNP price target to $335
- Positive Sentiment: Bank of America also lifted its price target to $334 from $301 and kept a buy rating, reinforcing bullish analyst sentiment. Bank of America raises UNP price target to $334
- Positive Sentiment: Union Pacific’s Q2 results beat estimates on both earnings and revenue, driven by stronger volumes, pricing, and operating efficiency. Union Pacific reports second-quarter 2026 results
- Positive Sentiment: The CN agreement improves North American rail connectivity and reduces uncertainty around Union Pacific’s proposed Norfolk Southern merger, which investors may see as a key strategic step forward. Union Pacific and CN reach agreement to expand customer opportunities in connection with merger
Insider Activity
In other news, EVP Eric J. Gehringer sold 2,991 shares of the business’s stock in a transaction dated Wednesday, June 3rd. The shares were sold at an average price of $263.96, for a total transaction of $789,504.36. Following the transaction, the executive vice president directly owned 43,012 shares in the company, valued at $11,353,447.52. The trade was a 6.50% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which is available through this link. Insiders own 0.22% of the company’s stock.
Institutional Inflows and Outflows
A number of institutional investors and hedge funds have recently bought and sold shares of UNP. Morgan Stanley lifted its position in shares of Union Pacific by 5.0% during the 4th quarter. Morgan Stanley now owns 12,636,050 shares of the railroad operator’s stock valued at $2,922,971,000 after acquiring an additional 602,647 shares during the period. Bank of America Corp DE increased its position in Union Pacific by 4.3% during the 4th quarter. Bank of America Corp DE now owns 12,378,263 shares of the railroad operator’s stock worth $2,863,340,000 after purchasing an additional 505,409 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in shares of Union Pacific by 72.7% in the third quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,177,002 shares of the railroad operator’s stock valued at $2,169,168,000 after buying an additional 3,861,636 shares during the last quarter. Northern Trust Corp raised its holdings in Union Pacific by 3.2% in the 3rd quarter. Northern Trust Corp now owns 6,881,628 shares of the railroad operator’s stock valued at $1,626,610,000 after acquiring an additional 210,184 shares during the last quarter. Finally, Charles Schwab Investment Management Inc. lifted its position in Union Pacific by 1.4% during the fourth quarter. Charles Schwab Investment Management Inc. now owns 3,769,057 shares of the railroad operator’s stock worth $871,858,000 after buying an additional 53,822 shares during the period. Institutional investors and hedge funds own 80.38% of the company’s stock.
Analysts Set New Price Targets
A number of research analysts have issued reports on the company. Citigroup began coverage on Union Pacific in a report on Wednesday, July 15th. They issued an “outperform” rating for the company. UBS Group reiterated a “neutral” rating and issued a $274.00 price objective (up from $253.00) on shares of Union Pacific in a research report on Friday, April 24th. Bank of America increased their target price on Union Pacific from $301.00 to $334.00 and gave the company a “buy” rating in a research report on Thursday. Benchmark increased their target price on Union Pacific from $325.00 to $335.00 and gave the company a “buy” rating in a report on Friday. Finally, Barclays reiterated an “overweight” rating and set a $350.00 price target on shares of Union Pacific in a research report on Friday. Two analysts have rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and seven have issued a Hold rating to the company. Based on data from MarketBeat, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $306.60.
Get Our Latest Report on Union Pacific
About Union Pacific
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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