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Union Pacific's Q1 Earnings Beat Estimates, Revenues Increase Y/Y
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Key Takeaways
UNP beat EPS estimates in Q1, but revenue slightly missed despite 3.15% year-over-year growth.
Union Pacific saw gains from pricing and freight strength, offset by a 1% drop in carloads.
UNP's bulk and industrial segments grew, while premium revenue and carloads declined.
Union Pacific Corporation (UNP - Free Report) reported mixed first-quarter 2026 results, wherein the company’s earnings beat the Zacks Consensus Estimate but revenues missed the same.
Quarterly earnings (excluding 6 cents from non-recurring items) of $2.93 per share beat the Zacks Consensus Estimate by 2.8% and increased 8.5% on a year-over-year basis.
Operating revenues of $6.21 billion missed the Zacks Consensus Estimate of $6.22 billion but rose 3.15% on a year-over-year basis, driven by core pricing gains, fuel surcharge revenues and business mix, partially offset by 1% fewer carloads and lower other revenues. Revenue carloads declined 1% year over year.
Union Pacific Corporation Price, Consensus and EPS Surprise
Freight revenues (accounting for 95% of the top line) increased 4% year over year to $5.89 billion. Other revenues decreased 3.6% year over year to $324 million in the first quarter of 2026.
Operating income increased 4% year over year to $2.46 billion. Total operating expenses of $3.76 billion inched up 3% year over year. Fuel expenses rose 7% year over year. Expenses on purchased services and materials increased 7% on a year-over-year basis, while expenses on compensation and benefits increased 1% year over year.
The operating ratio (operating expenses as a percentage of revenues) in the first quarter of 2026, on an adjusted basis, improved 80 basis points year over year to 59.9%.
UNP’s Segmental Highlights
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $2.03 billion, which increased 10% on a year-over-year basis. Segmental revenue carloads increased 12% year over year to $548 million.
Industrial freight revenues came in at $2.19 billion, up 5% year over year. Segmental revenue carloads increased 4% year over year to $560 million.
Freight revenues in the premium division were $1.68 billion, down 5% year over year. Premium revenue carloads decreased 9% year over year to $975 million.
UNP’s Liquidity
Union Pacific exited the first quarter of 2026 with cash and cash equivalents of $735 million compared with $1.27 billion at the prior-quarter end. Debt (due after a year) of $29.78 billion was down 1.7% compared with the prior-quarter end actuals.
UNP’s 2026 Outlook
For 2026, earnings per share are expected to register mid-single digit growth, consistent with attaining the three-year CAGR target of high-single digit to low-double digit growth through 2027.
UNP further anticipates operating ratio improvement. Capital expenditure is expected to be approximately $3.3 billion. UNP aims to continue generating strong cash while increasing annual dividend payouts.
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, reflecting a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise. Demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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Union Pacific's Q1 Earnings Beat Estimates, Revenues Increase Y/Y
Key Takeaways
Union Pacific Corporation (UNP - Free Report) reported mixed first-quarter 2026 results, wherein the company’s earnings beat the Zacks Consensus Estimate but revenues missed the same.
Quarterly earnings (excluding 6 cents from non-recurring items) of $2.93 per share beat the Zacks Consensus Estimate by 2.8% and increased 8.5% on a year-over-year basis.
Operating revenues of $6.21 billion missed the Zacks Consensus Estimate of $6.22 billion but rose 3.15% on a year-over-year basis, driven by core pricing gains, fuel surcharge revenues and business mix, partially offset by 1% fewer carloads and lower other revenues. Revenue carloads declined 1% year over year.
Union Pacific Corporation Price, Consensus and EPS Surprise
Union Pacific Corporation price-consensus-eps-surprise-chart | Union Pacific Corporation Quote
Freight revenues (accounting for 95% of the top line) increased 4% year over year to $5.89 billion. Other revenues decreased 3.6% year over year to $324 million in the first quarter of 2026.
Operating income increased 4% year over year to $2.46 billion. Total operating expenses of $3.76 billion inched up 3% year over year. Fuel expenses rose 7% year over year. Expenses on purchased services and materials increased 7% on a year-over-year basis, while expenses on compensation and benefits increased 1% year over year.
The operating ratio (operating expenses as a percentage of revenues) in the first quarter of 2026, on an adjusted basis, improved 80 basis points year over year to 59.9%.
UNP’s Segmental Highlights
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $2.03 billion, which increased 10% on a year-over-year basis. Segmental revenue carloads increased 12% year over year to $548 million.
Industrial freight revenues came in at $2.19 billion, up 5% year over year. Segmental revenue carloads increased 4% year over year to $560 million.
Freight revenues in the premium division were $1.68 billion, down 5% year over year. Premium revenue carloads decreased 9% year over year to $975 million.
UNP’s Liquidity
Union Pacific exited the first quarter of 2026 with cash and cash equivalents of $735 million compared with $1.27 billion at the prior-quarter end. Debt (due after a year) of $29.78 billion was down 1.7% compared with the prior-quarter end actuals.
UNP’s 2026 Outlook
For 2026, earnings per share are expected to register mid-single digit growth, consistent with attaining the three-year CAGR target of high-single digit to low-double digit growth through 2027.
UNP further anticipates operating ratio improvement. Capital expenditure is expected to be approximately $3.3 billion. UNP aims to continue generating strong cash while increasing annual dividend payouts.
Currently, UNP carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis. Revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, reflecting a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise. Demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.