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Norfolk Southern Q1 Earnings & Revenues Top Estimates, Expenses Up Y/Y
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Key Takeaways
NSC posted adjusted EPS $2.65 vs. $2.51 consensus, but down 1.5% from last year.
NSC's adjusted operating ratio worsened to 68.7% as higher costs and the March fuel spike weighed.
NSC's operating cash flow fell to $344M in Q1. It did not repurchase shares in the quarter.
Norfolk Southern Corporation (NSC - Free Report) posted earnings (excluding 22 cents from non-recurring items) of $2.65 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $2.51. The adjusted figure was down 1.5% from $2.69 a year ago.
Railway operating revenues were $3.0 billion, edging past the Zacks Consensus Estimate of $2.99 billion and rising 0.2% year over year. The adjusted operating ratio (operating expenses as a % of revenues) in the quarter landed at 68.7%, as higher costs and fuel headwinds weighed on profitability. The year-ago value of the metric was 67.9%. A lower value of the metric is preferable.
Norfolk Southern Price, Consensus and EPS Surprise
NSC Navigates Volatile Volumes and Weather Disruptions
First-quarter performance reflected a mixed demand and operating backdrop. Management pointed to volatile volumes, severe winter weather and a sharp rise in fuel prices in March, but noted that service execution improved as conditions normalized late in the quarter.
The volume decline was modest at 1% year over year, suggesting a relatively steady demand base even amid macro uncertainty. As conditions improved, the railroad said it captured momentum exiting the quarter, underscoring the strength of the operating foundation. In the market outlook, the company also flagged that the competitive environment following its merger announcement is expected to pressure volumes in the short to medium term.
Norfolk Southern Mix Shows Resilience Across Segments
Merchandise remained the largest contributor, with revenues rising 1% year over year to $1.88 billion on a 1% increase in units. Revenue per unit for the franchise was essentially flat year over year, indicating stable pricing and mix despite a choppy backdrop.
Intermodal revenues dipped 1% to $749 million as units declined 4%, though revenue per unit improved 3%. Coal revenues slipped 2% to $364 million, even as volumes increased 9%, as revenue per unit fell 9%, reflecting weaker realization.
NSC Profitability Reflects Merger and Incident Impacts
On a GAAP basis, earnings were $2.43 per share compared with $3.31 in the year-ago period, while income from railway operations fell 23% to $877 million. Operating expenses rose 15% to $2.12 billion, caused in part by $52 million of merger-related expenses and $10 million of net expenses tied to the Eastern Ohio incident.
Excluding merger-related costs and the incident impacts, adjusted income from railway operations was $939 million, down 2% year over year. The adjusted expense base was $2.06 billion, up 1%, as productivity gains partially offset inflation and higher fuel costs.
Norfolk Southern Cash Use Tilts Toward Investment and Dividends
NSC, currently carrying a Zacks Rank #3 (Hold), ended the quarter with cash and cash equivalents of $1.34 billion, down from $1.53 billion at the end of fiscal 2025. Long-term debt was $16.49 billion at March 31, 2026, and total debt stood at $17.10 billion, keeping leverage broadly steady. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Operating cash flow was $344 million in the first three months of 2026 compared with $950 million a year ago, reflecting working-capital movement and lower earnings. Norfolk Southern invested $382 million in property additions and returned $303 million to shareholders through dividends, while it did not repurchase shares during the quarter.
NSC Reiterates 2026 Expense and Capex Guardrails
Looking ahead, management reiterated its 2026 framework centered on safety, consistent service and disciplined execution. Adjusted operating expense is still expected in a range of $8.2 billion to $8.4 billion, with the company noting that prolonged elevated fuel prices could influence the outlook.
Capital spending is projected at $1.9 billion for 2026, representing a planned reduction of about $300 million, or 14%, from 2025 levels. The company also highlighted a new partnership with Jaguar Transport Holdings, as part of its freight growth focus, emphasizing deal structures and capabilities aimed at creating added customer value.
Q1 Performances of Other Transportation Companies
CSX Corporation’s (CSX - Free Report) first-quarter 2026 earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 39 cents and increased 26% on a year-over-year basis. Results were aided by revenue growth and a reduction in operating expenses.
Total revenues of $3.48 billion missed the Zacks Consensus Estimate of $3.51 billion. The top line increased 2% year over year on the back of higher merchandise pricing, intermodal volume growth, higher domestic coal revenues and increased fuel surcharge revenues. These were partially offset by a decrease in export coal revenues, including the impact of lower benchmark rates.
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 4 cents.
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, as 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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Norfolk Southern Q1 Earnings & Revenues Top Estimates, Expenses Up Y/Y
Key Takeaways
Norfolk Southern Corporation (NSC - Free Report) posted earnings (excluding 22 cents from non-recurring items) of $2.65 per share for the first quarter of 2026, topping the Zacks Consensus Estimate of $2.51. The adjusted figure was down 1.5% from $2.69 a year ago.
Railway operating revenues were $3.0 billion, edging past the Zacks Consensus Estimate of $2.99 billion and rising 0.2% year over year. The adjusted operating ratio (operating expenses as a % of revenues) in the quarter landed at 68.7%, as higher costs and fuel headwinds weighed on profitability. The year-ago value of the metric was 67.9%. A lower value of the metric is preferable.
Norfolk Southern Price, Consensus and EPS Surprise
Norfolk Southern Corporation price-consensus-eps-surprise-chart | Norfolk Southern Corporation Quote
NSC Navigates Volatile Volumes and Weather Disruptions
First-quarter performance reflected a mixed demand and operating backdrop. Management pointed to volatile volumes, severe winter weather and a sharp rise in fuel prices in March, but noted that service execution improved as conditions normalized late in the quarter.
The volume decline was modest at 1% year over year, suggesting a relatively steady demand base even amid macro uncertainty. As conditions improved, the railroad said it captured momentum exiting the quarter, underscoring the strength of the operating foundation. In the market outlook, the company also flagged that the competitive environment following its merger announcement is expected to pressure volumes in the short to medium term.
Norfolk Southern Mix Shows Resilience Across Segments
Merchandise remained the largest contributor, with revenues rising 1% year over year to $1.88 billion on a 1% increase in units. Revenue per unit for the franchise was essentially flat year over year, indicating stable pricing and mix despite a choppy backdrop.
Intermodal revenues dipped 1% to $749 million as units declined 4%, though revenue per unit improved 3%. Coal revenues slipped 2% to $364 million, even as volumes increased 9%, as revenue per unit fell 9%, reflecting weaker realization.
NSC Profitability Reflects Merger and Incident Impacts
On a GAAP basis, earnings were $2.43 per share compared with $3.31 in the year-ago period, while income from railway operations fell 23% to $877 million. Operating expenses rose 15% to $2.12 billion, caused in part by $52 million of merger-related expenses and $10 million of net expenses tied to the Eastern Ohio incident.
Excluding merger-related costs and the incident impacts, adjusted income from railway operations was $939 million, down 2% year over year. The adjusted expense base was $2.06 billion, up 1%, as productivity gains partially offset inflation and higher fuel costs.
Norfolk Southern Cash Use Tilts Toward Investment and Dividends
NSC, currently carrying a Zacks Rank #3 (Hold), ended the quarter with cash and cash equivalents of $1.34 billion, down from $1.53 billion at the end of fiscal 2025. Long-term debt was $16.49 billion at March 31, 2026, and total debt stood at $17.10 billion, keeping leverage broadly steady. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Operating cash flow was $344 million in the first three months of 2026 compared with $950 million a year ago, reflecting working-capital movement and lower earnings. Norfolk Southern invested $382 million in property additions and returned $303 million to shareholders through dividends, while it did not repurchase shares during the quarter.
NSC Reiterates 2026 Expense and Capex Guardrails
Looking ahead, management reiterated its 2026 framework centered on safety, consistent service and disciplined execution. Adjusted operating expense is still expected in a range of $8.2 billion to $8.4 billion, with the company noting that prolonged elevated fuel prices could influence the outlook.
Capital spending is projected at $1.9 billion for 2026, representing a planned reduction of about $300 million, or 14%, from 2025 levels. The company also highlighted a new partnership with Jaguar Transport Holdings, as part of its freight growth focus, emphasizing deal structures and capabilities aimed at creating added customer value.
Q1 Performances of Other Transportation Companies
CSX Corporation’s (CSX - Free Report) first-quarter 2026 earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 39 cents and increased 26% on a year-over-year basis. Results were aided by revenue growth and a reduction in operating expenses.
Total revenues of $3.48 billion missed the Zacks Consensus Estimate of $3.51 billion. The top line increased 2% year over year on the back of higher merchandise pricing, intermodal volume growth, higher domestic coal revenues and increased fuel surcharge revenues. These were partially offset by a decrease in export coal revenues, including the impact of lower benchmark rates.
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 4 cents.
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, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.