Union Pacific (NYSE:UNP) Posts Earnings Results, Beats Expectations By $0.07 EPS

Union Pacific (NYSE:UNP) released its quarterly earnings data on Thursday. The railroad operator reported $2.93 EPS for the quarter, beating analysts’ consensus estimates of $2.86 by $0.07, FiscalAI reports. The firm had revenue of $6.22 billion for the quarter, compared to analysts’ expectations of $6.12 billion. Union Pacific had a return on equity of 40.89% and a net margin of 29.12%.The firm’s quarterly revenue was up 3.2% on a year-over-year basis. During the same period in the prior year, the firm posted $2.70 earnings per share.

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

• Strong first quarter financials — reported net income of $1.7 billion, EPS of $2.87 (adjusted $2.93), a 59.9% operating ratio, and management affirmed 2026 reported EPS mid‑single‑digit growth plus their multi‑year high‑single to low‑double‑digit EPS CAGR target through 2027.
• Outstanding operational productivity — best‑ever terminal dwell (19.7 hours), freight car velocity up 9%, locomotive productivity +6% and workforce productivity +7%, which management says creates latent capacity to add significant volume without large incremental resources.
• Commercial momentum — bulk and grain strength (coal volume +12; record grain exports including China and Mexico), industrial revenue +5%, record domestic intermodal, and a robust pipeline highlighted by ~20 new construction projects in Q1 and the upcoming Golden Triangle Polymers startup.
• Merger progress — UP plans to file a revised application on April 30, says it has addressed STB requests and guarantees jobs for union employees, but regulatory review restarts the clock and approval timing remains uncertain.
• Near‑term headwinds — volatile, higher fuel costs (management expects averaging north of $4 per gallon versus earlier $2.35 estimate), merger‑related costs raising purchase/services expense, and weakness in international intermodal, autos and some forest products.

Union Pacific Trading Up 9.2%

Union Pacific stock opened at $272.32 on Friday. The stock has a 50-day moving average price of $251.59 and a 200 day moving average price of $238.07. Union Pacific has a 52 week low of $206.63 and a 52 week high of $271.26. The stock has a market cap of $161.59 billion, a PE ratio of 22.75, a P/E/G ratio of 2.76 and a beta of 0.96. The company has a current ratio of 0.91, a quick ratio of 0.75 and a debt-to-equity ratio of 1.64.

Union Pacific Dividend Announcement

The business also recently disclosed a quarterly dividend, which was paid on Tuesday, March 31st. Stockholders of record on Friday, February 27th were given a $1.38 dividend. This represents a $5.52 annualized dividend and a dividend yield of 2.0%. The ex-dividend date was Friday, February 27th. Union Pacific’s dividend payout ratio is currently 46.12%.

More Union Pacific News

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

• Positive Sentiment: Q1 earnings beat and strong profit metrics: UNP reported adjusted EPS of $2.93 versus street estimates of ~$2.86 and delivered higher net income and margins, supporting the view of resilient pricing and operating leverage. Read More.
• Positive Sentiment: Guidance affirmed and shares hitting fresh highs: Management affirmed full‑year earnings guidance; the beat + guidance reinforcement helped lift the stock to a new 52‑week / 12‑month high on stronger-than-expected execution. Read More.
• Positive Sentiment: Analyst backing: TD Cowen bumped its price target to $282 and reiterated a Buy rating, adding institutional validation to the post‑earnings momentum (this raises upside vs. recent levels).
• Positive Sentiment: Merger progress renews optionality: Management said it’s continuing work on the proposed Norfolk Southern transaction and expects to resubmit a revised regulatory filing soon — that renewed timetable has revived deal optimism and potential synergy upside. Read More.
• Neutral Sentiment: Re‑rating/valuation focus: Analysts and commentators are re‑assessing UNP’s valuation after the recent run; some see continued upside given dividend and buyback profile, while others point to elevated expectations. Read More.
• Negative Sentiment: Fuel-cost headwind: Management warned that higher fuel prices could pressure margins going forward — a material input cost that can compress operating leverage if elevated. Read More.
• Negative Sentiment: Traffic mix and carloads: Some commentary noted lower carloads and softness in premium segments that offset pricing gains; these demand/mix issues are watch points that could limit upside if they persist. Read More.

Wall Street Analyst Weigh In

A number of research firms have commented on UNP. Raymond James Financial reaffirmed a “strong-buy” rating on shares of Union Pacific in a research report on Wednesday, April 15th. Evercore upgraded shares of Union Pacific from an “in-line” rating to an “outperform” rating and set a $262.00 target price for the company in a report on Thursday, March 19th. Robert W. Baird set a $311.00 price target on Union Pacific and gave the stock an “outperform” rating in a research report on Friday, March 6th. Benchmark reiterated a “buy” rating and issued a $275.00 price objective (up from $260.00) on shares of Union Pacific in a report on Friday, April 17th. Finally, Barclays reiterated an “overweight” rating and set a $315.00 price target on shares of Union Pacific in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, fourteen have issued a Buy rating and eight have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has a consensus rating of “Moderate Buy” and a consensus price target of $272.10.

Insider Buying and Selling at Union Pacific

In other Union Pacific news, EVP Eric J. Gehringer sold 1,999 shares of the company’s stock in a transaction on Friday, March 20th. The stock was sold at an average price of $234.93, for a total value of $469,625.07. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. Company insiders own 0.22% of the company’s stock.

Institutional Investors Weigh In On Union Pacific

A number of large investors have recently made changes to their positions in the company. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Union Pacific by 72.7% during the 3rd quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 9,177,002 shares of the railroad operator’s stock valued at $2,169,168,000 after purchasing an additional 3,861,636 shares during the period. Baupost Group LLC MA acquired a new position in Union Pacific in the third quarter worth approximately $353,658,000. Pinebridge Investments LLC bought a new stake in Union Pacific in the fourth quarter worth approximately $251,256,000. Third Point LLC raised its holdings in shares of Union Pacific by 106.9% during the 4th quarter. Third Point LLC now owns 1,810,000 shares of the railroad operator’s stock valued at $418,689,000 after purchasing an additional 935,000 shares in the last quarter. Finally, EdgePoint Investment Group Inc. lifted its stake in shares of Union Pacific by 53.1% in the 4th quarter. EdgePoint Investment Group Inc. now owns 2,645,906 shares of the railroad operator’s stock valued at $612,051,000 after purchasing an additional 917,292 shares during the last quarter. Institutional investors and hedge funds own 80.38% of the company’s stock.

Union Pacific Company Profile

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.