Railroads Gain Freight Volume And Revenue
CSX, Norfolk Southern and Union Pacific reported stronger third-quarter demand, but margin performance diverged.
Freight growth supported record quarterly revenue across CSX, Norfolk Southern and Union Pacific in the third quarter of 2026. CSX's volume increased 5% year over year, Norfolk Southern's rose 3% and Union Pacific's revenue carloads grew 6%. Norfolk Southern said a tighter trucking market highlighted rail's competitive advantages.
Pricing also supported revenue growth at CSX and Union Pacific, alongside higher fuel surcharges. At Norfolk Southern, higher fuel surcharges accounted for eight percentage points of its 14% revenue growth, making fuel recovery a substantial part of the increase.
The margin picture was less uniform: CSX reported operating-margin expansion, while Norfolk Southern's operating ratio worsened to 67.4% from 64.6% a year earlier. Union Pacific also flagged higher fuel prices as a drag on its operating ratio.
Despite that pressure, Union Pacific affirmed its 2026 outlook for high-single-digit reported earnings-per-share growth and pricing dollars exceeding inflation dollars, while warning that high fuel prices would challenge its reported operating ratio.
Union Pacific also maintained its commitment to consistent annual dividend increases, with its third-quarter dividend declared at $1.42 a share against $1.38 a year earlier.
Sources: CSX, Norfolk Southern and Union Pacific third-quarter earnings releases.
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