Norfolk Southern Corporation 8-K

EarningsGuidance

Fuel surcharges drove record rail revenue, while higher fuel costs prompted an expense outlook update and pressured the adjusted operating ratio.

Filed 2026-07-23 08:20 ET

Summary

Q2 2026 results with updated FY2026 adjusted operating expense guidance. Revenue reached a quarterly record, up 11% Y/Y, while GAAP operating income and diluted EPS declined; adjusted operating income and EPS increased. The expense outlook was updated for higher estimated incremental fuel expense.

Key Figures

Metric Q2 2026 Q2 2025 Y/Y
Revenue $3.47B $3.11B +11%
Income from railway operations $1.12B $1.18B -4%
Adjusted income from railway operations, non-GAAP $1.20B $1.14B +5%
Net income $734M $768M -4%
Diluted EPS $3.26 $3.41 -4%
Adjusted diluted EPS, non-GAAP $3.52 $3.29 +7%
Operating ratio 67.6% 62.2% +540 bp
Adjusted operating ratio, non-GAAP 65.5% 63.4% +210 bp
  • Revenue growth reflected a 4% increase in volume and higher fuel surcharges, which contributed six percentage points of growth. Higher fuel expense and corresponding fuel surcharge revenue created a 110 bp Y/Y headwind to the adjusted operating ratio.
  • First-half operating cash flow was $1.40B vs $2.03B in 2025. At 6/30/2026, cash was $1.07B and total debt carrying value was $16.6B.
  • No shares were repurchased in the first half of 2026, vs 1.9M shares repurchased and retired for $455M in the first half of 2025. Shares outstanding, net of treasury shares, rose by about 0.19M from year-end 2025 to 224.61M.

Guidance

  • FY2026 adjusted operating expense guidance updated to $8.8B-$8.9B to account for higher estimated incremental fuel expense; prior range and direction of the change were not stated.

Investor Takeaways

  • FY2026 adjusted operating expenses vs the $8.8B-$8.9B range, particularly the effect of incremental fuel expense, will show how the updated outlook tracks.

The summary is written by an AI model reading the filing.

Model 005 · prompt 01d34d48e3

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