Union Pacific (NYSE:UNP) Posts Earnings Results, Beats Expectations By $0.15 EPS

Union Pacific (NYSE:UNP) announced its quarterly earnings results on Thursday. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $3.26 by $0.15, Briefing.com reports. The firm had revenue of $6.86 billion during 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 firm’s quarterly revenue was up 11.5% on a year-over-year basis. During the same period last year, the firm posted $3.03 EPS.

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 1.1%

NYSE:UNP opened at $307.54 on Friday. Union Pacific has a 12-month low of $210.84 and a 12-month high of $315.99. The company has a quick ratio of 0.73, a current ratio of 0.99 and a debt-to-equity ratio of 1.40. The firm has a market capitalization of $182.59 billion, a P/E ratio of 24.90, a P/E/G ratio of 3.18 and a beta of 0.96. The stock’s fifty day simple moving average is $275.12 and its 200-day simple moving average is $258.32.

Union Pacific Announces Dividend

The business also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were paid a $1.38 dividend. The ex-dividend date of this dividend was Friday, May 29th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 1.8%. Union Pacific’s dividend payout ratio is 45.47%.

Insider Activity at Union Pacific

In related news, EVP Eric J. Gehringer sold 2,991 shares of the company’s stock in a transaction dated 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 sale, the executive vice president owned 43,012 shares in the company, valued at approximately $11,353,447.52. This represents a 6.50% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which can be accessed through this link. 0.22% of the stock is currently owned by company insiders.

Institutional Trading of Union Pacific

Institutional investors and hedge funds have recently modified their holdings of the stock. SWAN Capital LLC grew its holdings in Union Pacific by 2,575.0% during the fourth quarter. SWAN Capital LLC now owns 107 shares of the railroad operator’s stock valued at $25,000 after purchasing an additional 103 shares during the period. Gilpin Wealth Management LLC acquired a new stake in Union Pacific in the fourth quarter worth $31,000. Quarry LP acquired a new stake in Union Pacific in the third quarter worth $34,000. Ankerstar Wealth LLC bought a new position in shares of Union Pacific during the fourth quarter worth $37,000. Finally, Caitong International Asset Management Co. Ltd boosted its position in shares of Union Pacific by 507.7% during the fourth quarter. Caitong International Asset Management Co. Ltd now owns 158 shares of the railroad operator’s stock worth $37,000 after purchasing an additional 132 shares in the last quarter. 80.38% of the stock is owned by institutional investors.

Analyst Upgrades and Downgrades

Several research firms have recently weighed in on UNP. Citigroup raised their price objective on shares of Union Pacific from $326.00 to $349.00 and gave the stock a “buy” rating in a report on Friday. Sanford C. Bernstein increased their price target on Union Pacific from $289.00 to $293.00 and gave the stock an “outperform” rating in a research report on Tuesday, March 31st. The Goldman Sachs Group set a $317.00 price target on Union Pacific and gave the company a “neutral” rating in a report on Thursday. Bank of America boosted their price objective on Union Pacific from $301.00 to $334.00 and gave the stock a “buy” rating in a research note on Thursday. Finally, Evercore restated an “outperform” rating and set a $294.00 target price on shares of Union Pacific in a report on Thursday, June 25th. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have assigned a Buy rating and seven have assigned a Hold rating to the stock. According to data from MarketBeat.com, Union Pacific presently has a consensus rating of “Moderate Buy” and an average price target of $319.16.

Union Pacific News Summary

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Union Pacific reported better-than-expected Q2 results, with adjusted EPS of $3.41 and revenue of $6.86 billion, both ahead of Wall Street estimates, reinforcing confidence in operating momentum and pricing power.
• Positive Sentiment: Analysts turned more constructive after the earnings beat, with Citigroup, JPMorgan, Benchmark, and Bank of America all raising price targets, suggesting expectations for further upside in the stock.
• Positive Sentiment: Union Pacific and Canadian National reached a binding access agreement tied to the proposed Norfolk Southern merger, easing competition concerns and improving the odds of regulatory approval while also giving UNP better Chicago routing efficiency and expanded corridor access. Article Title
• Neutral Sentiment: The broader news flow also highlighted that the merger and access agreement may reshape North American rail traffic patterns, but the deal still depends on Surface Transportation Board approval and final closing.
• Neutral Sentiment: Several articles noted Union Pacific’s record freight revenue and improved efficiency, which supports the bullish case but is already partly reflected in the recent rally.

Union Pacific Company Profile

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.