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Union Pacific lifts guidance after beating earnings, while merger nears
Union Pacific reported revenue of $6.86 billion and adjusted earnings of $3.41 a share, while a $71.5 billion Norfolk Southern deal is still pending STB review with a revised deadline of first half 2027.
Union Pacific Corporation reported a stronger-than-expected quarter and raised its full-year outlook, as the company presses ahead with its pending merger with Norfolk Southern. Yahoo Finance reported that revenue increased 12.0% to $6.86 billion, topping the $6.71 billion expected, and adjusted earnings were $3.41 per share versus $3.24 expected.
The company said it will target high-single-digit earnings growth for the full year, up from mid-single digits, while operating expenses rose 13.0% to $4.1 billion. The increase was driven largely by a 63% jump in fuel costs linked to the Iran war, and the stock was up about 2% in premarket trading, according to Yahoo Finance.
Union Pacific is seeking to buy Norfolk Southern in a deal valued around $71.5 billion, down from an earlier $85 billion as terms have shifted with its stock. The combined railroad would create the first coast-to-coast U.S. rail network, the outlet noted.
Yahoo Finance also said Union Pacific settled with Canadian National Railway just before earnings, with Canadian National dropping opposition in exchange for expanded Midwest access and a stake in two jointly owned terminal railroads. The Surface Transportation Board paused review in May, and this week ordered Union Pacific to make employee-impact data public, with the companies still expecting to close in the first half of 2027.