Union Pacific revenue and profit rise in Q3

In results published on 22 October, Union Pacific reported Q3 net income of $2.093 billion and diluted EPS of $3.49. A year earlier, the figures were $1.803 billion and $3.01. Operating revenue increased 15% to $7.197 billion, while revenue carloads grew 6%. The company cited fuel surcharges, volume growth, core pricing and other revenue as drivers.

The operating ratio improved 10 basis points to 59.1%; higher fuel prices had a 140-basis-point adverse effect. Freight car velocity was 228 daily miles per car, up 1%, and average terminal dwell improved 2% to 19.9 hours. Fuel consumption was 1.034 gallons per thousand gross ton-miles, a 2% improvement. The company set a $3.5 billion capital plan for 2026.

The company also reported adjusted results separately from GAAP net income. Adjusted net income was $2.1 billion and adjusted EPS was $3.53, compared with $1.8 billion and $3.08 a year earlier. The adjusted operating ratio was 58.8%, 30 basis points worse year over year. The 10-basis-point improvement in the GAAP operating ratio and deterioration in the adjusted measure reflect different calculation scopes; they should not be treated as one metric. Union Pacific also highlighted fuel surcharges as a contributor to revenue growth.

On the operating side, car velocity, terminal dwell and fuel efficiency are separate measures tracked by the company. Revenue carloads grew 6%, while velocity rose 1% to 228 daily miles per car, a measure of equipment movement across the network rather than freight tonnage or on-time delivery. Average terminal dwell fell 2% to 19.9 hours. Fuel use of 1.034 gallons per thousand gross ton-miles is an intensity measure that accounts for both weight and distance. The company also reported a 5% increase in workforce productivity to 1,219 car miles per employee.

Union Pacific maintained its outlook for high-single-digit EPS growth in 2026 and set capital spending at $3.5 billion. The capital plan covers network, locomotive and equipment investment; the release does not guarantee a particular revenue outcome. Year-over-year comparisons in the report are against Q3 2025. These are results from one US railroad and do not measure all freight activity in the country or the performance of other rail operators.

The release also said adjusted earnings per share grew 15% year over year and operating revenue excluding fuel surcharges rose 6%. Those figures offer additional context on the mix of reported growth: total operating revenue includes surcharge effects, while the adjusted EPS measure excludes specified items under the company’s non-GAAP methodology. The release presents both reported and adjusted figures, so comparisons should retain their stated basis.