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Union Pacific tops earnings and lifts 2027 guidance amid Norfolk Southern bid
Revenue rose 12% to $6.86 billion, while adjusted earnings were $3.41 per share, and the railroad raised full-year earnings growth guidance to high-single digits.
Union Pacific reported a quarterly beat alongside updates tied to its pending merger with Norfolk Southern, a deal the company is positioning as the biggest in its history. According to Yahoo Finance, revenue increased 12% to $6.86 billion, topping the $6.71 billion expected figure, and adjusted earnings came in at $3.41 per share versus $3.24 expected.
The company also raised its full-year guidance for earnings growth to high-single digits, up from mid-single digits previously. Yahoo Finance reported Union Pacific shares rose about 2% in premarket trading after the results.
Costs also climbed, with operating expenses up 13% to $4.1 billion, driven largely by a 63% jump in fuel costs connected to the Iran war, according to the outlet. Yahoo Finance added that Union Pacific is trying to acquire Norfolk Southern in a transaction currently valued around $71.5 billion.
On the regulatory front, Yahoo Finance said Union Pacific settled with Canadian National Railway, which had been pressing regulators for more information. The settlement includes Canadian National dropping its opposition in exchange for expanded Midwest access and a stake in two jointly owned terminal railroads, but the Surface Transportation Board has not yet approved the deal, and expects a close in the first half of 2027.