Union Pacific grows earnings as freight volumes rise

Union Pacific ($UNP) reported third-quarter 2026 net income of $2.1 billion, up 16%, with GAAP earnings of $3.49 per share. Adjusted earnings increased 15% to $3.53. Revenue rose 15% to $7.2 billion as carloads increased 6%, supported by core pricing gains and higher fuel surcharges. Freight revenue excluding fuel surcharges also increased 6%.

The reported operating ratio improved slightly to 59.1%, while the adjusted ratio was 58.8%. Higher fuel prices added 140 basis points to the ratio, illustrating why headline revenue growth does not translate directly into equivalent margin expansion. Management said it handled the additional traffic efficiently and continues to await the next stages of the Surface Transportation Board’s merger review. That regulatory process remains pending rather than a completed transaction.

Sources:

• Issuer release via MarketScreener
• Business Wire
• Union Pacific — issuer financial results