Union Pacific Carloads Rise 6% in Third Quarter

The Tip Desk · October 27, 2026 · 2 min read

Diluted earnings were $3.49 a share as third-quarter operating revenue reached $7.2 billion and the company lifted its 2026 capital plan to $3.5 billion.

Union Pacific Corporation (UNP) reported third-quarter net income of $2.1 billion, or $3.49 a share, up 16% from a year earlier.

The railroad said operating revenue of $7.2 billion grew 15%, accelerating from 12% growth in the second quarter. Freight revenue excluding fuel surcharge increased 6%, after 4% growth in the prior quarter.

Revenue carloads rose 6% to 2,293 thousand. Chief Executive Officer Jim Vena said the company “efficiently handled six percent volume growth” and delivered “record financial results.”

Intermodal was the sharpest revenue gain: freight revenue rose 27% to $1.517 billion, with intermodal carloads up 11% to 956 thousand. Premium freight revenue increased 21% to $2.188 billion, with premium carloads up 9% to 1,158 thousand. Energy and specialized markets revenue rose 18% to $771 million, and metals and minerals revenue rose 17% to $666 million. Average revenue per car was $2,971, up 8%.

Fuel was the other large swing. Fuel expense was $1.040 billion, up 69%, as the average price per gallon consumed rose 64% to $4.21. The company said higher fuel prices unfavorably impacted the operating ratio 140 basis points, versus a 120 basis point unfavorable fuel-price impact in the second quarter.

The reported operating ratio improved 10 basis points year over year to 59.1%, after a 70 basis point deterioration to 59.7% in the second quarter. The adjusted operating ratio increased 30 basis points to 58.8%.

Workforce productivity was 1,219 car miles per employee, a 5% increase that matched the second-quarter rate. Freight car velocity was 228 daily miles per car, a 1% increase after a 5% increase in the prior quarter. The fuel consumption rate improved 2% to 1.034 gallons per thousand gross ton-miles. Average terminal dwell was 19.9 hours.

Service indexes moved the other way. The intermodal service performance index fell 6 points year over year to 92%, and the manifest service performance index fell 7 points to 93%.

For 2026, Union Pacific said it remains on track with Investor Day targets, including reported earnings per share growth of high-single digit, consistent with a three-year CAGR target of high-single to low-double digit through 2027, and pricing dollars in excess of inflation dollars. It updated the capital plan to $3.5 billion, from $3.3 billion in the prior two quarters. The company also said the reported operating ratio is challenged by high fuel prices, while operating-ratio improvement from the core business is still expected; the second-quarter outlook had simply affirmed operating-ratio improvement.

Vena said the company looks forward to upcoming steps in the Surface Transportation Board’s merger review process.