Union Pacific Corporation 8-K
PositiveEarningsGuidance raised
Carload growth and faster freight cars support a raised EPS outlook; higher fuel prices worsen the operating ratio.
Filed 2026-07-23 07:46 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with an improved FY2026 outlook. Net income rose 6% and diluted EPS rose 7%, supported by volume growth and strong execution. Union Pacific increased its reported EPS growth outlook to high-single digits; higher fuel prices weighed on the operating ratio.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Operating revenue | $6.86B | $6.15B | 12% |
| Operating income | $2.76B | $2.53B | 9% |
| Net income | $1.99B | $1.88B | 6% |
| Adjusted net income, non-GAAP | $2.03B | $1.80B | 12% |
| Diluted EPS | $3.36 | $3.15 | 7% |
| Adjusted diluted EPS, non-GAAP | $3.41 | $3.03 | 13% |
| Operating ratio | 59.7% | 59.0% | +70 bp |
| Adjusted operating ratio, non-GAAP | 59.2% | 58.1% | +110 bp |
- Freight revenue rose 12%; freight revenue excluding fuel surcharge grew 4%. Higher fuel surcharge, volume growth, core pricing and other revenue contributed, partly offset by business mix.
- Higher fuel prices adversely affected the operating ratio by 120 bp. Revenue carloads increased 2%; freight car velocity improved 5% to 231 daily miles per car, and terminal dwell improved 7% to 19.7 hours.
- YTD operating cash flow was $5.52B vs $4.54B; FCF, non-GAAP, was $1.81B vs $1.11B. At 6/30/2026, cash was $1.61B and debt was $30.3B, down from $31.8B at 12/31/2025. YTD share repurchases were $26M vs $2.68B; Q2 weighted-average diluted shares declined to 594.0M from 594.8M.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Reported EPS growth (GAAP) | FY2026 | High-single digit | — | Raised |
| EPS CAGR target | Through 2027 (three years) | High-single to low-double digit | — | — |
| Capital plan | 2026 | $3.3B | — | Reaffirmed |
Also reaffirmed: pricing dollars in excess of inflation, operating ratio improvement, industry-leading operating ratio and return on invested capital, continued strong cash generation, and consistent annual dividend increases.
Investor Takeaways
- Track FY2026 reported EPS growth against the raised high-single-digit outlook and progress toward the through-2027 CAGR target.
- Operating ratio improvement remains a stated objective; fuel prices were a significant headwind this quarter.
- Watch the regulatory process for the proposed Norfolk Southern combination and the timing and outcome of required approvals.
The summary is written by an AI model reading the filing.
Model 005 · prompt 01d34d48e3