Norfolk Southern Reverses Second-Quarter Earnings Decline

The Tip Desk · October 22, 2026 · 2 min read

The railroad posted $3.5 billion of third-quarter revenue, a 14% year-over-year gain, and $1.15 billion of income from railway operations.

Norfolk Southern Corporation (NSC) reported railway operating revenues of $3.5 billion in the third quarter of 2026, a quarterly record that was $423 million, or 14%, above the year-earlier quarter.

The year-over-year revenue gain accelerated from 11% in the second quarter. Volume rose 3% from a year earlier, and higher fuel surcharges accounted for eight points of the revenue increase, compared with six points in the prior quarter.

Income from railway operations was $1.15 billion, up $52 million, or 5%, versus the third quarter of 2025, reversing a 4% year-over-year decline in the second quarter. Diluted earnings were $3.37 a share, up $0.21, or 7%.

The operating ratio was 67.4%, compared with 64.6% a year earlier.

President and Chief Executive Officer Mark George said the railroad delivered record revenues and earnings growth aided by continued productivity gains, and that demand for rail service increased as a tighter trucking market highlighted rail’s competitive advantages.

Merchandise revenue was $2.19 billion, intermodal $919 million, and coal $419 million.

Fuel expense was $420 million, versus $237 million a year earlier. Merger-related expenses were $42 million, versus $15 million, and Eastern Ohio incident expenses were $28 million, versus $13 million of net expenses.

Excluding merger-related expenses and the Eastern Ohio incident in both years, and restructuring and other charges in 2025, adjusted income from railway operations was $1.22 billion, up $82 million, or 7%, versus adjusted third-quarter 2025 results. The adjusted operating ratio was 65.4%, 210 basis points higher than the adjusted year-earlier ratio. Adjusted diluted earnings were $3.62 a share, up $0.32, or 10%.

Sequential revenue had risen from $3.0 billion in the first quarter of 2026, when results were flat year-over-year on a 1% volume decline, to $3.5 billion in the second quarter and remained at that level in the third quarter.

George said the company remained focused on investing in a stronger, more resilient rail network that can support growth it sees on the horizon.