By Allison Peck
Union Pacific reported higher earnings and revenue in the first quarter of 2026, driven by pricing gains and improved operating performance.
The railroad posted net income of $1.7 billion, or $2.87 per diluted share, compared to $1.6 billion, or $2.70 per share, during the same period in 2025. Adjusted earnings rose to $2.93 per share.
Operating revenue totaled $6.2 billion, up 3% year-over-year, while freight revenue increased 4% to nearly $5.9 billion. The company said growth was supported by core pricing gains, fuel surcharge revenue and business mix, despite a 1% decline in total carloads.
Company leaders pointed to continued operational improvements during the quarter. Operating ratio — a key efficiency metric — improved to 60.5%, while adjusted operating ratio came in at 59.9%.
CEO Jim Vena said the company continued to build momentum in safety, service and efficiency, while positioning itself for long-term growth.
Union Pacific reported gains across several performance metrics, including a 9% increase in freight car velocity and an 11% reduction in terminal dwell time. Workforce productivity improved 7%, while fuel efficiency also saw gains.
Freight demand was mixed across sectors. Bulk shipments, including grain and coal, saw double-digit revenue increases, while intermodal and automotive shipments declined compared to last year. Total revenue carloads dipped slightly by 1%.
Operating income rose 4% to $2.46 billion, and cash from operations increased to $2.44 billion. The company generated $631 million in free cash flow during the quarter.
Looking ahead, Union Pacific reaffirmed its 2026 outlook, expecting mid-single-digit earnings per share growth and continued improvement in operating ratio. The company also plans $3.3 billion in capital investments and ongoing dividend increases.
Union Pacific operates in 23 western states, moving freight that supports industries ranging from agriculture to manufacturing, and remains one of the largest freight rail networks in the United States.