Union Pacific (NYSE:UNP) Announces Quarterly Earnings Results

Key Points

• Union Pacific beat Q2 expectations, reporting adjusted EPS of $3.41 versus the $3.25 consensus and revenue of $6.86 billion versus $6.72 billion expected. Revenue rose 11.5% year over year, driven by stronger volume and pricing.
• The railroad posted record second-quarter results and improved operational performance, including better car velocity, lower terminal dwell, and strong service metrics. Management said these trends helped drive net income of $2 billion.
• Union Pacific raised its full-year outlook, now expecting reported EPS growth in the high single-digit range. The company cited continued productivity gains, stronger-than-expected volume trends, and improved service execution, though fuel costs remain a headwind.

Union Pacific (NYSE:UNP - Get Free Report) issued its quarterly earnings results on Thursday. The railroad operator reported $3.41 earnings per share (EPS) for the quarter, topping analysts' consensus estimates 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 firm earned $3.03 earnings per share. The business's revenue for the quarter was up 11.5% compared to the same quarter last year.

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 Price Performance

Shares of UNP traded up $16.29 during trading hours on Thursday, reaching $308.85. 2,473,547 shares of the company traded hands, compared to its average volume of 3,137,497. The stock has a fifty day simple moving average of $273.68 and a 200 day simple moving average of $257.46. The company has a quick ratio of 0.73, a current ratio of 0.92 and a debt-to-equity ratio of 1.53. The stock has a market capitalization of $183.37 billion, a PE ratio of 25.44, a price-to-earnings-growth ratio of 3.07 and a beta of 0.96. Union Pacific has a fifty-two week low of $210.84 and a fifty-two week high of $315.99.

Union Pacific Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, June 30th. Investors of record on Friday, May 29th were given a dividend of $1.38 per share. This represents a $5.52 annualized dividend and a dividend yield of 1.8%. The ex-dividend date was Friday, May 29th. Union Pacific's payout ratio is currently 45.47%.

Analyst Ratings Changes

A number of research analysts recently issued reports on the stock. Stephens upgraded shares of Union Pacific to a "strong-buy" rating in a research note on Wednesday, July 8th. Evercore restated an "outperform" rating and issued a $294.00 price target on shares of Union Pacific in a research note on Thursday, June 25th. Sanford C. Bernstein upped their price objective on Union Pacific from $289.00 to $293.00 and gave the stock an "outperform" rating in a research report on Tuesday, March 31st. JPMorgan Chase & Co. raised their target price on Union Pacific from $275.00 to $304.00 and gave the stock a "neutral" rating in a research report on Friday, July 10th. Finally, Raymond James Financial reaffirmed a "strong-buy" rating on shares of Union Pacific in a report on Monday, July 13th. Two analysts have rated the stock with a Strong Buy rating, thirteen have issued a Buy rating and seven have given a Hold rating to the company. According to data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and an average target price of $299.11.

Key Headlines Impacting Union Pacific

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

• Positive Sentiment: Union Pacific posted adjusted Q2 EPS of $3.41, ahead of the $3.25 consensus, while revenue of $6.86 billion also beat expectations of $6.72 billion. The railroad said revenue rose 11.5% from a year earlier, pointing to solid operating momentum. Article Title
• Positive Sentiment: The company also reported that adjusted net income increased 12% and adjusted diluted EPS increased 13% year over year, with management citing stronger volume growth. Article Title
• Positive Sentiment: Union Pacific and CN announced a binding memorandum of understanding tied to Union Pacific’s proposed acquisition of Norfolk Southern, with CN agreeing not to oppose the deal in exchange for expanded access rights. Investors may view this as reducing merger uncertainty and improving the odds of regulatory approval. Article Title

Insider Activity

In other Union Pacific news, EVP Kenyatta G. Rocker sold 27,387 shares of the business's stock in a transaction on Friday, April 24th. The shares were sold at an average price of $271.76, for a total transaction of $7,442,691.12. Following the completion of the sale, the executive vice president owned 61,102 shares in the company, valued at $16,605,079.52. The trade was a 30.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available at this link. Also, CFO Jennifer L. Hamann sold 2,000 shares of the company's stock in a transaction on Friday, April 24th. The stock was sold at an average price of $274.70, for a total value of $549,400.00. Following the transaction, the chief financial officer owned 114,642 shares of the company's stock, valued at approximately $31,492,157.40. The trade was a 1.71% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders have sold 32,378 shares of company stock valued at $8,781,595. Company insiders own 0.22% of the company's stock.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the stock. SWAN Capital LLC raised its position in shares of Union Pacific by 2,575.0% during the fourth quarter. SWAN Capital LLC now owns 107 shares of the railroad operator's stock worth $25,000 after acquiring an additional 103 shares during the last quarter. Gilpin Wealth Management LLC bought a new stake in shares of Union Pacific during the fourth quarter worth $31,000. Quarry LP acquired a new position in shares of Union Pacific during the third quarter worth about $34,000. Ankerstar Wealth LLC bought a new stake in shares of Union Pacific in the fourth quarter worth $37,000. Finally, Caitong International Asset Management Co. Ltd increased its position in shares of Union Pacific by 507.7% in the fourth quarter. Caitong International Asset Management Co. Ltd now owns 158 shares of the railroad operator's stock valued at $37,000 after acquiring an additional 132 shares during the last quarter. 80.38% of the stock is owned by institutional investors.

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.