Union Pacific Corp. reported third-quarter 2026 net income of $2.1 billion, up 16% from $1.8 billion in the same quarter last year.
Diluted earnings per share rose 16% to $3.49, up from $3.01 in the third quarter of 2025. Adjusted net income was $2.1 billion, up 15% from a year earlier, while adjusted diluted earnings per share increased 15% to $3.53.
Operating revenue reached a record $7.2 billion, an increase of 15%, driven by higher fuel surcharges, a 6% increase in freight volume, higher prices and additional revenue. Freight revenue excluding fuel surcharges increased 6%.
The railroad’s operating ratio improved 10 basis points to 59.1%. The adjusted operating ratio was 58.8%, up 30 basis points from a year earlier. Higher fuel prices negatively affected the operating ratio by 140 basis points.
Union Pacific also reported improvements in several operating measures. Freight car velocity increased 1% to 228 miles per car daily, while average terminal dwell improved 2% to 19.9 hours.
Fuel efficiency improved 2%, and workforce productivity increased 5% to 1,219 car miles per employee.
The railroad reaffirmed its outlook for high-single-digit earnings-per-share growth in 2026, though it said higher fuel prices could affect its reported operating ratio.
Union Pacific also updated its 2026 capital spending plan to $3.5 billion.
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