Union Pacific (NYSE:UNP) Posts Quarterly Earnings Results, Beats Estimates By $0.07 EPS

Key Points

• Union Pacific posted a Q1 beat with adjusted EPS of $2.93 versus estimates of $2.86 and revenue of $6.22 billion, reporting net income of $1.7 billion and affirming mid‑single‑digit 2026 EPS growth plus a multi‑year high‑single to low‑double‑digit CAGR target through 2027.
• Management highlighted best‑ever operational productivity—terminal dwell at 19.7 hours, freight car velocity +9%, locomotive productivity +6% and workforce productivity +7%—and commercial momentum across bulk, grain, industrial and intermodal that creates latent capacity to add volume without large incremental resources.
• Union Pacific said it will file a revised merger application on April 30, but regulatory review restarts the clock and timing is uncertain, while near‑term headwinds include higher fuel costs (expected north of $4 per gallon), merger‑related expenses and weakness in some traffic lanes that could pressure margins.

Union Pacific (NYSE:UNP - Get Free Report) posted its quarterly earnings data on Thursday. The railroad operator reported $2.93 earnings per share for the quarter, beating the consensus estimate of $2.86 by $0.07, FiscalAI reports. The company had revenue of $6.22 billion during the quarter, compared to analyst estimates of $6.12 billion. Union Pacific had a net margin of 29.12% and a return on equity of 40.89%. The business's revenue for the quarter was up 3.2% on a year-over-year basis. During the same quarter last year, the firm posted $2.70 EPS.

Here are the key takeaways from Union Pacific's conference call:

• Strong first quarter financials — reported net income of $1.7 billion, EPS of $2.87 (adjusted $2.93), a 59.9% operating ratio, and management affirmed 2026 reported EPS mid‑single‑digit growth plus their multi‑year high‑single to low‑double‑digit EPS CAGR target through 2027.
• Outstanding operational productivity — best‑ever terminal dwell (19.7 hours), freight car velocity up 9%, locomotive productivity +6% and workforce productivity +7%, which management says creates latent capacity to add significant volume without large incremental resources.
• Commercial momentum — bulk and grain strength (coal volume +12; record grain exports including China and Mexico), industrial revenue +5%, record domestic intermodal, and a robust pipeline highlighted by ~20 new construction projects in Q1 and the upcoming Golden Triangle Polymers startup.
• Merger progress — UP plans to file a revised application on April 30, says it has addressed STB requests and guarantees jobs for union employees, but regulatory review restarts the clock and approval timing remains uncertain.
• Near‑term headwinds — volatile, higher fuel costs (management expects averaging north of $4 per gallon versus earlier $2.35 estimate), merger‑related costs raising purchase/services expense, and weakness in international intermodal, autos and some forest products.

Union Pacific Stock Up 8.7%

UNP stock opened at $271.09 on Friday. The company has a debt-to-equity ratio of 1.64, a current ratio of 0.91 and a quick ratio of 0.75. The firm has a market capitalization of $160.86 billion, a P/E ratio of 22.65, a P/E/G ratio of 2.76 and a beta of 0.96. Union Pacific has a 52-week low of $206.63 and a 52-week high of $271.26. The company's 50 day simple moving average is $251.59 and its 200-day simple moving average is $238.07.

Union Pacific Dividend Announcement

The company also recently declared a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were issued a dividend of $1.38 per share. The ex-dividend date was Friday, February 27th. This represents a $5.52 dividend on an annualized basis and a dividend yield of 2.0%. Union Pacific's payout ratio is currently 46.12%.

Union Pacific News Roundup

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

• Positive Sentiment: Q1 beat and strong results — UNP posted adjusted EPS of $2.93 (vs. consensus ~ $2.84) and revenue of $6.22B, with net income and margins improving year‑over‑year; results included a small merger-related charge. This upside is the primary near-term bull case for the stock. Read More.
• Positive Sentiment: Pricing power and efficiency gains — management said stronger pricing, fuel surcharge dynamics and productivity improvements offset cost pressure, lifting profitability and investor confidence in operating execution. Read More.
• Positive Sentiment: Merger momentum — management reiterated its pursuit of the proposed Norfolk Southern acquisition and signaled a revised regulatory filing is imminent, which revived deal optimism and likely contributed to sector re‑rating. Read More.
• Neutral Sentiment: Guidance affirmed — UNP affirmed its full‑year earnings outlook after the quarter, removing some uncertainty around forward estimates but leaving results sensitive to volume/mix and costs. Read More.
• Negative Sentiment: Fuel-cost headwind — management warned that rising fuel prices will pressure margins, a risk that could limit margin expansion if fuel or other input costs continue to climb. Read More.

Wall Street Analysts Forecast Growth

UNP has been the topic of a number of research reports. Benchmark reiterated a "buy" rating and issued a $275.00 target price (up from $260.00) on shares of Union Pacific in a report on Friday, April 17th. TD Cowen decreased their price target on shares of Union Pacific from $257.00 to $255.00 and set a "buy" rating on the stock in a research report on Wednesday, January 28th. The Goldman Sachs Group restated a "neutral" rating and issued a $267.00 price target on shares of Union Pacific in a research report on Tuesday, January 27th. Raymond James Financial reaffirmed a "strong-buy" rating on shares of Union Pacific in a report on Wednesday, April 15th. Finally, Robert W. Baird set a $311.00 price objective on Union Pacific and gave the company an "outperform" rating in a research report on Friday, March 6th. One investment analyst has rated the stock with a Strong Buy rating, fourteen have given a Buy rating and eight have issued a Hold rating to the stock. Based on data from MarketBeat, the company presently has an average rating of "Moderate Buy" and an average price target of $267.48.

Insider Buying and Selling

In related news, EVP Eric J. Gehringer sold 1,999 shares of the firm's stock in a transaction that occurred on Friday, March 20th. The shares were sold at an average price of $234.93, for a total value of $469,625.07. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. Corporate insiders own 0.22% of the company's stock.

Institutional Trading of Union Pacific

Hedge funds have recently modified their holdings of the business. Acadian Asset Management LLC grew its stake in Union Pacific by 40.4% during the 1st quarter. Acadian Asset Management LLC now owns 2,312 shares of the railroad operator's stock valued at $546,000 after acquiring an additional 665 shares in the last quarter. Schnieders Capital Management LLC. lifted its position in shares of Union Pacific by 0.5% in the second quarter. Schnieders Capital Management LLC. now owns 20,606 shares of the railroad operator's stock worth $4,741,000 after purchasing an additional 102 shares in the last quarter. Main Street Financial Solutions LLC lifted its position in shares of Union Pacific by 1.6% in the second quarter. Main Street Financial Solutions LLC now owns 3,733 shares of the railroad operator's stock worth $859,000 after purchasing an additional 58 shares in the last quarter. HUB Investment Partners LLC lifted its position in shares of Union Pacific by 10.0% in the second quarter. HUB Investment Partners LLC now owns 6,091 shares of the railroad operator's stock worth $1,401,000 after purchasing an additional 554 shares in the last quarter. Finally, Alliancebernstein L.P. boosted its holdings in shares of Union Pacific by 7.4% during the second quarter. Alliancebernstein L.P. now owns 1,528,426 shares of the railroad operator's stock worth $351,660,000 after purchasing an additional 105,664 shares during the period. Hedge funds and other institutional investors own 80.38% of the company's stock.

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.