Union Pacific Q2 Earnings Call Highlights

Union Pacific Q2 Earnings Call Highlights Written by MarketBeat July 23, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC. Key Points Union Pacific reported record Q2 2026 results , with net income of $2 billion and adjusted EPS of $3.41. Revenue rose 12% to $6.9 billion, helped by 2% volume growth, pricing gains, and higher fuel surcharge revenue. The company raised its full-year 2020 EPS outlook to high single-digit growth, while acknowledging fuel prices remain a major cost headwind. Cash from operations increased 21% to $5.5 billion, and Union Pacific paid down $1.5 billion in long-term debt in the first half. Operational performance improved across the network, with record freight car velocity, train speed, and terminal dwell metrics. Management also highlighted continued progress on the proposed Norfolk Southern merger, including a new settlement agreement with Canadian National. Interested in Union Pacific? Here are five stocks we like better . Buffett Spent 60 Years Ignoring Tech and the Bill Is Coming Due Union Pacific NYSE: UNP reported record second-quarter 2026 financial results, with executives citing volume growth, pricing gains and improved operating performance, while also raising the railroad’s full-year earnings outlook. Chief Executive Officer Jim Vena said the company delivered “record financial results driven by strong execution and 2% volume growth.” Net income totaled $2 billion, and earnings per share were $3.36 on a reported basis. Adjusted for merger costs, EPS was $3.41. Get Union Pacific alerts: Sign Up AI Broke the Trucks: 3 Transports to Buy After the AI Panic “There was a lot of in and outs as we compare our performance against last year,” Vena said, noting fuel was a major driver of both surcharge revenue and expense. Excluding those factors, he said Union Pacific saw “solid core improvement” in revenue and operating income. Revenue Rises as Fuel Surcharges and Volume Lift Results Chief Financial Officer Jennifer Hamann said operating revenue rose 12% from a year earlier to $6.9 billion, while freight revenue also increased 12% to $6.5 billion. Fuel surcharge revenue contributed 750 basis points to freight revenue growth and increased by roughly $460 million, reflecting higher fuel prices and volume. 2026 Sector Playbook: 3 Sectors Trading Below Fair Value Volume growth added 225 basis points to freight revenue, while core pricing and business mix contributed 175 basis points. Hamann said the company’s “quarterly pricing dollars continue to exceed inflation dollars” as Union Pacific competes for business at levels reflecting the value of its rail service. Business mix was a slight headwind in the quarter, Hamann said, as stronger-than-expected domestic intermodal growth offset the mix benefit from lower international intermodal traffic. Operating expenses rose 13% to $4.1 billion, primarily due to higher diesel fuel prices. Fuel expense increased 63%, driven by a 60% increase in the average fuel price and 2% higher gross ton miles. The company’s average price per gallon rose to $3.86 from $2.42 a year earlier, adding 120 basis points to the operating ratio. Union Pacific’s operating ratio was 59.2% in the quarter. Hamann said cash from operations increased 21% to $5.5 billion, while free cash flow totaled $1.8 billion after network reinvestment and dividends. The company also paid down $1.5 billion of long-term debt in the first half, bringing adjusted debt-to-EBITDA to 2.5 times. Company Raises 2026 EPS Outlook Union Pacific raised its 2026 outlook to reported EPS growth in the high single-digit range, up from its prior outlook for 6% year-to-date growth in line with January expectations. Hamann said the company expects continued operating ratio improvement despite pressure from fuel costs. “Fuel prices remain volatile,” Hamann said, adding that recent purchases have been above $4 per gallon. In response to an analyst question, she said fuel would likely continue to...