Union Pacific (NYSE:UNP) Issues Earnings Results

Union Pacific (NYSE:UNP) posted its quarterly earnings results on Thursday. The railroad operator reported $3.41 EPS for the quarter, beating analysts’ consensus estimates of $3.25 by $0.16, Briefing.com reports. The business had revenue of $6.86 billion during the quarter, compared to the consensus estimate of $6.72 billion. Union Pacific had a return on equity of 39.58% and a net margin of 29.20%.Union Pacific’s revenue for the quarter was up 11.5% compared to the same quarter last year. During the same quarter in the previous year, the firm earned $3.03 earnings per share.

Here are the key takeaways from Union Pacific’s conference call:

• Union Pacific reported record second-quarter results, with operating revenue up 12% to $6.9 billion, net income of $2 billion, and adjusted EPS of $3.41, driven by 2% volume growth and stronger pricing.
• The company raised its full-year 2026 outlook to reported EPS growth in the high single-digit range, citing stronger-than-expected volume trends, continued productivity gains, and improved service execution.
• Fuel was a major headwind in the quarter, with higher diesel costs and fuel surcharges materially affecting both revenue and expense; management said fuel remains volatile and may continue to pressure operating ratio.
• Operational performance was a highlight, with record productivity and service metrics including 5% higher freight car velocity, 7% lower terminal dwell, and a 95% service performance index in both intermodal and manifest.
• Management emphasized that the Norfolk Southern merger is progressing, including STB approval milestones and a new settlement with Canadian National, which it says improves competitiveness and supports the case for the transaction.

Union Pacific Trading Up 5.6%

Shares of NYSE:UNP traded up $16.29 during mid-day trading on Thursday, reaching $308.85. 2,473,547 shares of the company’s stock were exchanged, compared to its average volume of 3,137,497. The company has a debt-to-equity ratio of 1.53, a quick ratio of 0.73 and a current ratio of 0.92. Union Pacific has a twelve month low of $210.84 and a twelve month high of $315.99. The firm has a market capitalization of $183.37 billion, a price-to-earnings ratio of 25.44, a PEG ratio of 3.07 and a beta of 0.96. The business’s fifty day moving average price is $273.68 and its 200-day moving average price is $257.46.

Union Pacific Announces Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 30th. Stockholders of record on Friday, May 29th were paid a dividend of $1.38 per share. The ex-dividend date of this dividend was Friday, May 29th. This represents a $5.52 annualized dividend and a dividend yield of 1.8%. Union Pacific’s dividend payout ratio (DPR) is presently 45.47%.

Analysts Set New Price Targets

A number of equities research analysts have issued reports on UNP shares. Stephens upgraded shares of Union Pacific to a “strong-buy” rating in a research note on Wednesday, July 8th. Citizens Jmp started coverage on shares of Union Pacific in a report on Wednesday, July 15th. They set an “outperform” rating and a $350.00 price target for the company. Raymond James Financial reissued a “strong-buy” rating on shares of Union Pacific in a research note on Monday, July 13th. Royal Bank Of Canada restated an “outperform” rating and set a $289.00 price objective (up from $273.00) on shares of Union Pacific in a research report on Friday, April 24th. Finally, Sanford C. Bernstein upped their target price on Union Pacific from $289.00 to $293.00 and gave the stock an “outperform” rating in a research note on Tuesday, March 31st. Two equities research analysts have rated the stock with a Strong Buy rating, thirteen have given a Buy rating and seven have assigned a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average price target of $299.11.

Insider Activity at Union Pacific

In other news, CFO Jennifer L. Hamann sold 2,000 shares of the firm’s stock in a transaction dated Friday, April 24th. The stock was sold at an average price of $274.70, for a total transaction of $549,400.00. Following the completion of the transaction, the chief financial officer directly owned 114,642 shares in the company, valued at $31,492,157.40. This trade represents a 1.71% decrease in their ownership of the stock. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, EVP Eric J. Gehringer sold 2,991 shares of Union Pacific stock in a transaction that occurred on Wednesday, June 3rd. The stock was sold at an average price of $263.96, for a total value of $789,504.36. Following the completion of the transaction, the executive vice president directly owned 43,012 shares in the company, valued at approximately $11,353,447.52. This represents a 6.50% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold 32,378 shares of company stock worth $8,781,595 over the last three months. Company insiders own 0.22% of the company’s stock.

Institutional Investors Weigh In On Union Pacific

A number of institutional investors have recently modified their holdings of the company. Compound Planning Inc. increased its position in shares of Union Pacific by 10.5% during the fourth quarter. Compound Planning Inc. now owns 12,152 shares of the railroad operator’s stock worth $2,811,000 after buying an additional 1,151 shares during the period. Axxcess Wealth Management LLC boosted its position in Union Pacific by 10.9% during the fourth quarter. Axxcess Wealth Management LLC now owns 25,348 shares of the railroad operator’s stock valued at $5,863,000 after acquiring an additional 2,488 shares during the last quarter. Birchwood Financial Partners Inc. bought a new position in shares of Union Pacific in the 4th quarter worth about $111,000. Corient Private Wealth LLC boosted its position in shares of Union Pacific by 41.3% during the 4th quarter. Corient Private Wealth LLC now owns 628,142 shares of the railroad operator’s stock valued at $145,302,000 after purchasing an additional 183,573 shares in the last quarter. Finally, Widmann Financial Services Inc. bought a new stake in Union Pacific in the fourth quarter worth approximately $450,000. 80.38% of the stock is owned by institutional investors.

Key Stories Impacting Union Pacific

Here are the key news stories impacting Union Pacific this week:

• Positive Sentiment: Union Pacific posted adjusted Q2 EPS of $3.41, ahead of the $3.25 consensus, while revenue of $6.86 billion also beat expectations of $6.72 billion. The railroad said revenue rose 11.5% from a year earlier, pointing to solid operating momentum. Article Title
• Positive Sentiment: The company also reported that adjusted net income increased 12% and adjusted diluted EPS increased 13% year over year, with management citing stronger volume growth. Article Title
• Positive Sentiment: Union Pacific and CN announced a binding memorandum of understanding tied to Union Pacific’s proposed acquisition of Norfolk Southern, with CN agreeing not to oppose the deal in exchange for expanded access rights. Investors may view this as reducing merger uncertainty and improving the odds of regulatory approval. Article Title

About Union Pacific

Union Pacific Corporation (NYSE: UNP) is one of the largest freight railroad companies in the United States. Its principal operating subsidiary, Union Pacific Railroad, has roots that trace back to the Pacific Railway Act of 1862 and the construction of the first transcontinental rail link completed in 1869. The company is headquartered in Omaha, Nebraska, and operates as a holding company for rail transportation and related services.

Union Pacific’s core business is the movement of freight by rail across an extensive rail network serving the western two‑thirds of the United States.