Union Pacific (UP) in first-quarter 2026 “grew reported net income 5%, increased earnings per share 6%, and improved our operating ratio,” CEO Jim Vena said in an April 23 financial and operations report. “As we advance through the regulatory process to create America’s first transcontinental railroad, we have a solid foundation for another year of industry-leading results,” he noted.
According to the Class I, it is “on track with Investor Day targets.”
1Q26 vs. 1Q25 Results
For the three months ending March 31, 2026, UP reported net income of $1.7 billion, or $2.87 per diluted share. Results, it noted, include $36 million (or $0.06 per diluted share) of costs related to the potential merger with Norfolk Southern. Adjusted first-quarter 2026 net income came in at $1.7 billion, or $2.93 per diluted share; this compares with 2025 first-quarter net income of $1.6 billion, or $2.70 per diluted share.
According to the Class I, operating revenue of $6.2 billion grew 3% “driven by core pricing gains, fuel surcharge revenue, and business mix partially offset by 1% fewer carloads and lower other revenue.” Freight revenue, it said, increased 4% and freight revenue excluding fuel surcharge grew 3%. Additionally, reported operating ratio was 60.5%, an improvement of 20 basis points, and adjusted operating ratio was 59.9%, an improvement of 80 basis points, according to UP.
On the operations side, UP said that:
- “Reportable personal injury rate and reportable derailment rate both improved.
- “Freight car velocity was 235 daily miles per car, a 9% increase.
- “Average terminal dwell was 19.7 hours, an 11% improvement.
- “Locomotive productivity was 144 gross ton-miles (GTMs) per horsepower day, a 6% increase.
- “Fuel consumption rate was 1.064, measured in gallons of fuel per thousand GTMs, a 4% improvement.
- “Workforce productivity was 1,163 car miles per employee, a 7% increase.”
“Our safety, service, and operating momentum continued in the first quarter as we further challenged ‘what’s possible’ from our great railroad,” Jim Vena said.
2026 Outlook
UP reported that it was “on track with Investor Day targets,” noting that the 2026 outlook is affirmed:
- “Meeting customer demand with strong service; muted economic forecast.
- “Pricing dollars in excess of inflation dollars.
- “Reported earnings per share growth of mid-single digit; consistent with attaining three-year CAGR target of high-single to low-double digit through 2027.
- “Operating ratio improvement; industry-leading operating ratio and return on invested capital.
- “Continued strong cash generation.
- “Capital allocation: capital plan of $3.3 billion [and] consistent annual dividend increases.”
Jim Vena on April 23 also released on the UP website a letter to employees. Railway Age republishes it in full below:
‘Spectacular Results Demonstrate “What’s Possible” as Union Pacific Meets Demand with Strong Service’
It’s a very exciting time at Union Pacific. Our Safety, Service and Operational Excellence strategy has not changed, and I’m proud of the momentum we carried into the first quarter. I want to thank you for putting in the hard work as we always challenge “What’s Possible” for our great railroad.
This morning, we announced record first quarter financial results. We achieved our best-ever quarter in terminal dwell and locomotive productivity and set first quarter records in several key performance metrics, including freight car velocity. These results are spectacular. They mean we are meeting demand with strong service for our customers and America. We provide farmers new access to export markets for their soybeans and move the grain products that feed families and livestock. We haul heavy construction materials to build communities and the consumer products we all rely on every day.
Our country has made so many positive things possible for its citizens, and I am proud of how Union Pacific is celebrating the nation’s 250th birthday this year. We are traveling this great nation coast to coast for the first time with locomotives that represent our past and present, and one that highlights an era of railroading that does not exist in today’s world of diesel locomotives – the Big Boy No. 4014.
We decided the best way for us to celebrate was to start near Mile 0 in Sacramento – where Central Pacific laid its first tracks in 1863 – and will celebrate the Fourth of July as close to the East Coast as possible in Philadelphia. The enthusiasm of our employees and the public is a refreshing example of what’s good about this country.
I was truly honored to be at Mile 0 and ride in the cab as Big Boy made its way to Roseville, California. In a downpour of rain, more than 60,000 people came out to see it on display. I’m proud of the Steam team, led by Locomotive Engineer Ed Dickens, who restored this incredible locomotive and are operating it on its first tour east of the Mississippi River.
I can’t put out a note without talking about the merger. We will resubmit our application with the Surface Transportation Board (STB) shortly, and based on our service performance, the case for our merger is stronger than ever. This deal is good for America. We will move products seamlessly, removing time and costs from the supply chain. This allows us to better compete with trucks and enhance competition by opening up new options for customers, especially those in underserved markets. Our employees benefit from an unprecedented promise – every union employee with a job at the time of the merger will have one for life.
This process is thorough, and it should be. We are confident the transaction will be approved after the STB reviews its many merits and sees how the combination will benefit our customers, our employees and America.
I am excited about our future. The team delivered outstanding results and will continue to do so. We will keep telling the Union Pacific story. Like many of you, I watched the great success of the Artemis II launch and its return. Union Pacific moved rocket parts by train from Utah to Memphis, Tennessee, where we handed them off to Norfolk Southern. Short line partner Florida East Coast Railway also participated in the move that helped NASA challenge what’s possible. That’s who we are at Union Pacific.
Thank You,
Jim Vena
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