Union Pacific Corporation 8-K
PositiveEarningsGuidance reaffirmed
Carload growth and pricing powered gains, but higher fuel prices added 140 bp to Union Pacific’s operating ratio.
Filed 2026-10-22 07:46 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q3 2026 results with updated outlook. Revenue rose 15% and net income and diluted EPS each rose 16%, supported by 6% carload growth, pricing and operating execution; higher fuel costs weighed on the operating ratio. Union Pacific affirmed its reported EPS growth outlook and updated its operating-ratio outlook and capital plan.
Key Figures
| Metric | Q3 2026 | YTD 2026 |
|---|---|---|
| Revenue | $7.2B, +15% Y/Y | $20.3B, +10% Y/Y |
| Operating income | $2.94B, +15% Y/Y | $8.16B, +10% Y/Y |
| Net income | $2.08B, +16% Y/Y | $5.77B, +9% Y/Y |
| Adjusted net income, non-GAAP | $2.1B, +15% Y/Y | $5.86B, +11% Y/Y |
| Diluted EPS | $3.49, +16% Y/Y | $9.71, +9% Y/Y |
| Adjusted diluted EPS, non-GAAP | $3.53, +15% Y/Y | $9.87, +12% Y/Y |
| Operating ratio | 59.1%, vs 59.2% | 59.7%, vs 59.6% |
| Adjusted operating ratio, non-GAAP | 58.8%, vs 58.5% | 59.3%, vs 59.1% |
| Operating cash flow | — | $8.3B, +18% Y/Y |
| Free cash flow, non-GAAP | — | $2.36B, +27% Y/Y |
- Q3 revenue carloads increased 6%; freight revenue excluding fuel surcharge also rose 6%. Higher fuel surcharge, volume, core pricing and other revenue contributed to revenue growth, partly offset by business mix. Fuel expense increased 69% Y/Y, and higher fuel prices adversely affected the reported operating ratio by 140 bp.
- YTD cash and cash equivalents were $2.21B vs $1.27B at 12/31/2025; total debt was $30.3B vs $31.8B. Share repurchases were $26M vs $2.68B Y/Y; average diluted shares were 594.0M vs 596.7M.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Reported EPS growth | FY2026 | High-single digit | — | Reaffirmed |
| Reported EPS CAGR target | Through 2027 | High-single to low-double digit | — | Reaffirmed |
| Capital plan | FY2026 | $3.5B | — | — |
- Qualitative outlook: core-business operating-ratio improvement, with the reported operating ratio challenged by high fuel prices; pricing dollars in excess of inflation; and continued strong cash generation and annual dividend increases.
Guidance changes, derived from earlier filings
| Metric | Period | Earlier guidance | Guidance now | Change |
|---|---|---|---|---|
| Reported EPS growth | FY2026 | High-single digit | High-single digit | reaffirmed |
| Capital plan | 2026 | $3.3B | $3.5B | raised |
Investor Takeaways
- Watch reported EPS growth against the affirmed FY2026 outlook and progress toward the 2027 CAGR target.
- Track whether core-business operating-ratio improvement offsets fuel-price pressure on the reported ratio.
The summary is written by an AI model reading the filing.
Model 005 · prompt v95 · 2026-10-22 14:35:25Z