Norfolk Southern (NYSE:NSC – Get Free Report) issued its earnings results on Thursday. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.32 by $0.20, Briefing.com reports. Norfolk Southern had a return on equity of 18.21% and a net margin of 21.02%.The firm had revenue of $3.46 billion for the quarter, compared to analyst estimates of $3.38 billion. During the same period in the previous year, the company posted $3.29 earnings per share. The business’s revenue was up 12.5% on a year-over-year basis.
Here are the key takeaways from Norfolk Southern’s conference call:
- Norfolk Southern reported a strong second quarter with volume up 4%, record revenue before fuel, and adjusted EPS of $3.52, while net income and EPS both grew 7% year over year.
- The company raised its 2026 operating expense outlook to $8.8 billion-$8.9 billion from $8.2 billion-$8.4 billion, citing a $400 million-$500 million increase from higher fuel costs and ongoing inflation.
- Management said network performance is improving after disruptions, with on-time originations up 20% in the last month, terminal dwell improving, and train velocity rising as the railroad gets back on plan.
- Commercial momentum remained solid, led by Intermodal, merchandise, and coal; Intermodal volumes rose 5% and management expects favorable truck market conditions and high fuel prices to support pricing and conversion opportunities.
- Norfolk Southern reiterated at least $150 million of cost takeout in 2026 and said industrial development activity is accelerating, with its project pipeline nearly doubling versus last year and supporting longer-term volume growth.
Norfolk Southern Stock Up 0.9%
NSC opened at $351.69 on Friday. The business’s fifty day simple moving average is $317.37 and its 200 day simple moving average is $306.16. Norfolk Southern has a 52 week low of $268.23 and a 52 week high of $358.60. The company has a quick ratio of 0.81, a current ratio of 0.83 and a debt-to-equity ratio of 0.98. The stock has a market cap of $78.99 billion, a PE ratio of 30.01, a P/E/G ratio of 6.37 and a beta of 1.27.
Norfolk Southern Announces Dividend
Analysts Set New Price Targets
Several analysts have recently issued reports on the stock. Robert W. Baird boosted their price target on shares of Norfolk Southern from $330.00 to $360.00 and gave the company a “neutral” rating in a research report on Friday, July 10th. Susquehanna lifted their price objective on shares of Norfolk Southern from $337.00 to $360.00 and gave the company a “neutral” rating in a research note on Tuesday, July 14th. Benchmark restated a “hold” rating on shares of Norfolk Southern in a research report on Friday. TD Cowen raised their price target on Norfolk Southern from $337.00 to $376.00 and gave the stock a “buy” rating in a report on Friday. Finally, Stephens upgraded Norfolk Southern to a “hold” rating in a research report on Wednesday, July 8th. Six research analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the company. According to data from MarketBeat, the stock currently has an average rating of “Hold” and an average price target of $344.35.
Check Out Our Latest Stock Report on NSC
Institutional Trading of Norfolk Southern
A number of hedge funds have recently bought and sold shares of the company. State Street Corp grew its position in Norfolk Southern by 4.1% during the fourth quarter. State Street Corp now owns 9,710,549 shares of the railroad operator’s stock valued at $2,803,630,000 after acquiring an additional 379,819 shares during the last quarter. Pentwater Capital Management LP grew its holdings in shares of Norfolk Southern by 9.8% during the 4th quarter. Pentwater Capital Management LP now owns 3,019,000 shares of the railroad operator’s stock valued at $871,646,000 after purchasing an additional 269,000 shares during the last quarter. Morgan Stanley raised its position in Norfolk Southern by 6.0% in the 4th quarter. Morgan Stanley now owns 2,629,990 shares of the railroad operator’s stock worth $759,332,000 after purchasing an additional 148,201 shares during the period. Dimensional Fund Advisors LP boosted its position in Norfolk Southern by 1.6% during the fourth quarter. Dimensional Fund Advisors LP now owns 2,213,431 shares of the railroad operator’s stock valued at $639,082,000 after buying an additional 33,821 shares during the period. Finally, HBK Investments L P grew its stake in shares of Norfolk Southern by 67.7% during the fourth quarter. HBK Investments L P now owns 2,130,000 shares of the railroad operator’s stock valued at $614,974,000 after buying an additional 860,000 shares during the last quarter. Institutional investors own 75.10% of the company’s stock.
Key Headlines Impacting Norfolk Southern
Here are the key news stories impacting Norfolk Southern this week:
- Positive Sentiment: Norfolk Southern beat Q2 expectations, posting $3.52 in EPS and revenue above estimates, with revenue up 12.5% year over year and record quarterly sales. Reuters article
- Positive Sentiment: Wells Fargo raised its price target to $385 and reiterated an overweight rating, signaling confidence that the stock still has room to run. Benzinga article
- Positive Sentiment: Citigroup lifted its target to $376, reflecting a more constructive view after the earnings release, even though it kept a neutral rating. Benzinga article
- Neutral Sentiment: JPMorgan raised its target to $338 but maintained a neutral rating, suggesting valuation looks less compelling after the recent move higher. Benzinga article
- Neutral Sentiment: Some commentary noted lower profitability and margin pressure despite the revenue beat, which may temper enthusiasm if cost pressures persist. Seeking Alpha article
- Negative Sentiment: Profitability was held back by higher fuel costs and lower efficiency, showing that cost inflation remains a headwind even as demand improves. TipRanks article
About Norfolk Southern
Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.
The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.
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