Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. The company offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, ethanol producers, renewable biofuel producers, and other agricultural users; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. Union Pacific Corporation was founded in 1862 and is headquartered in Omaha, Nebraska.

Union Pacific Corporation

For Immediate Release
Chicago, IL – August 21, 2025 – Zacks Equity Research shares Talen Energy Corp. TLN as the Bull of the Day and The Wendy's Co. WEN as the Bear of the Day. In addition, Zacks Equity Research provides analysis on Union Pacific Corp. UNP and Canadian National Railway Co. CNI.
Here is a synopsis of all four stocks.
Talen Energy Corp. is a leading independent power producer that’s a direct long-term investment in the growing relationship between artificial intelligence and nuclear energy.
Wall Street has jumped into Talen, which already has a nuclear power deal with AI hyperscaler Amazon, and other nuclear energy stocks because TLN and its peers are part of a small group of companies ready to power the energy-hungry AI boom.
U.S. electricity supply will have to expand more than 5x faster than the prior two decades to meet demand, according to AI industry projections.
Alongside nuclear energy, the rapid build-out of AI data centers is also fueling surging natural gas demand. Talen made a blockbuster natural gas deal in the middle of July that will increase its annual generation by 50%.
This backdrop is why TLN stock soared 160% in the past year, crushing Nvidia and the Nasdaq.
Talen's recent pullback sets up a better buying opportunity for one of the leading players in nuclear energy that's prepared to fuel the AI age.
Buy Nuclear as Part of Your AI Stock Portfolio
The U.S. government aims to quadruple nuclear energy capacity by 2050. It is spurring nuclear energy expansion by cutting red tape, increasing tax incentives, partnering with next-gen nuclear energy companies, and beyond.
AI hyperscalers Meta, Amazon, Alphabet, and Microsoft have all rushed to secure more nuclear power and made deals to accelerate the development of next-generation nuclear technology, supported by their collective trillion-dollar balance sheets.
The reason is simple: without more power, the AI boom might be doomed to die on the vine.
AI marks a paradigm shift for energy demand after technology companies drove economic and stock market expansion in the post-financial crisis world without straining the grid. U.S. electricity generation remained roughly flat between 2010 and 2023.
Large data centers can consume nearly as much electricity as a midsize city because AI platforms like ChatGPT use at least 10x the energy of a typical Google search.
Data centers could jump from 4% of total U.S. power demand in 2023 to over 12% in 2030. Data center demand is already straining the grid and sending prices soaring.
Prices from the biggest U.S. power auction, held by grid operator PJM Interconnection in July, surged 22% to new all-time highs for 2026/2027 as demand outpaces supply—this came after prices skyrocketed over 800% last summer.
No one knows which AI hyperscalers will eventually dominate. What everyone is sure of is that the AI boom will be fueled by nuclear energy and natural gas.
Natural gas plants are far more cost-effective, and new construction will be much quicker as hyperscalers wait for nuclear plants to break ground at the end of the decade. And natural gas already accounts for by far the largest portion of U.S. electricity generation at 43%, vs. nuclear’s 20%.
Talen: Why the Amazon Partner Is a Must-Buy Stock
Talen Energy is an independent power producer (IPP) and a leading energy infrastructure company. Unlike traditional utility firms, TLN owns and operates facilities that generate electricity, which Talen then sells to utilities or major consumers such as Amazon.
Talen owns and operates about 10.7 gigawatts (GW) of power generation capacity across five states, including 2.2 GW of carbon-free nuclear via its Susquehanna plant. Talen boasts that Susquehanna generates enough carbon-free nuclear energy to power 2 million homes. Its portfolio also includes a significant amount of natural gas.
The company was at the vanguard of the relationship between AI and nuclear. Talen announced plans to develop data centers at the Susquehanna nuclear plant back in July 2021.
The company sold its Cumulus data center campus to Amazon last year and landed a long-term power agreement with AWS. TLN in June 2025 expanded its relationship with Amazon to provide 1,920 megawatts of carbon-free nuclear power through at least 2042.
Talen will supply electricity to Amazon to support AI and other cloud technologies at Amazon’s data center campus adjacent to Susquehanna, “with the ability to deliver to other sites throughout Pennsylvania.” On top of that, the expanded partnership will see Talen and Amazon explore building next-gen small modular reactors.
Talen stock soared to records in the middle of July after it announced a deal to buy two natural gas plants (one in Pennsylvania and one in Ohio).
Talen’s $3.8 billion deal is expected to boost its free cash flow per share by over 40% in 2026 and 50% through 2029. The acquisition also critically expands its annual generation capacity by 50% from 40 TWh to 60 TWh. The deal is set to close later this year.
Talen’s AI-Boosted Growth Outlook
Talen crushed our Q2 earnings estimate in early August, posting adjusted quarterly earnings per share (EPS) of $1.50 vs. our estimate of a -$1.13 loss. Its operating revenue jumped 29% YoY to $630 million, topping our $480.7 million estimate.
The nuclear power and natural gas company is projected to grow its revenue by 15% in 2025 and 62% next year to climb from $2.12 billion in 2024 to nearly $4 billion next year.
TLN’s adjusted EPS are projected to slip 30% YoY in 2025 following first-half declines. But its earnings are projected to surge 187% in Q3, 122% in the fourth quarter, and 234% next year.
Talen’s earnings estimates have popped since its release, including a 37% jump for 2026, helping it earn a Zacks Rank #1 (Strong Buy).
TLN is optimistic about its growth outlook, which is driven by its “ability to offer reliable, grid-supported and regionally diverse capacity to hyperscale data centers and other large commercial off-takers.”
Buy AI Energy Stock Talen On the Dip?
Talen stock has jumped 160% in the past year, including a 50% run in the past three months. Despite Talen’s 12-month run, investors can still get in near the ground floor since the AI boom and energy expansion/transition are just starting.
TLN stock has dropped 10% from its early-August peaks to slide below its 21-day. The nuclear energy company has fallen from overheated RSI levels to roughly neutral, and it could hold its ground near its July breakout levels.
Some traders might want to wait for a possible pullback to its 50-day moving average before diving into Talen.
Overall, Wall Street is very bullish on the stock, with 11 of the 12 brokerage recommendations Zacks has sitting at “Strong Buys.”
On top of that, Talen’s valuation levels have improved on the back of its soaring earnings outlook. Its price-to-earnings to growth (PEG) ratio of 1.5 marks a 70% discount to its highs and solid value compared to the S&P 500.
The Wendy's Co. stock has tanked over the last few years as its earnings outlook plummets amid an array of headwinds.
Why Investors Should Stay Away from WEN Stock
Wendy's is a fast-food chain renowned for its square hamburgers. The company, which was founded back in 1969 by Dave Thomas, remains committed to making its food fresh to order.
WEN operates across more than 7,000 restaurants worldwide, competing against the likes of McDonald's and Burger King. The burger chain remains a standout in the larger restaurant industry, but its struggles are growing amid changing consumer habits and more.
Consumers have more options than ever before, and more people are trying to eat healthier. On top of that, fast-casual giants like Chipotle and casual titan Chili’s are gaining momentum.
Wendy’s is suffering as its same-restaurant sales fade in 2025, driven by reduced customer traffic. Plus, rising commodity prices and labor costs remain significant headwinds.
WEN’s earnings estimates dropped again following its disappointing Q2 release on August 8.
WEN’s adjusted consensus earnings per share (EPS) estimates have fallen 16% for Q3, 21% for Q4, and 8% for fiscal 2026. Its negative earnings revisions earn the stock a Zacks Rank #5 (Strong Sell) and extend a downward spiral that began several years ago.
The burger company’s adjusted earnings are projected to fall 11% YoY on 3.4% lower sales. And its Retail – Restaurants industry sits in the bottom 19% of roughly 250 Zacks industries.
WEN stock has tumbled 37% in 2025, lagging far behind its industry’s -3% drop and McDonald's +8% jump. This is part of a 53% decline over the past five years, while its industry jumped 27% and MCD surged 48%. Therefore, it might be best for investors interested in the restaurant business to look elsewhere.
Additional content:
2 Dividend-Paying Stocks from the Railroad Industry You Should Count On
Prospects of the Zacks Transportation - Rail industry’s participants are being weighed down by challenges like tariff-induced economic uncertainties, persistent inflation and concerns pertaining to lingering supply-chain disruptions. Geopolitical woes represent further challenges. Most industry players are looking to drive their bottom line amid the headwinds through cost reduction.
Partly due to these headwinds, the industry has declined 5.3% over the past year against the S&P 500 Index’s 15.6% gain. The broader Zacks Transportation sector has plunged 7.9% in the said time frame.
Despite the challenges surrounding the industry, some railroad companies like Union Pacific Corp. and Canadian National Railway Co. have consistently paid dividends to their shareholders, thus highlighting their pro-shareholder stance.
Dividend growth stocks generally belong to mature companies, which are less susceptible to significant market swings, and act as a hedge against uncertainty-induced stock market volatility, as is the case currently. They offer downside protection with their consistent increase in payouts.
Additionally, these companies generally have strong fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity and a strong balance sheet.
How to Pick Stocks with Solid Dividend Payouts?
Investing in dividend stocks is a prudent strategy that offers a dual advantage: steady income and a cushion against market volatility. It's no wonder investors actively seek companies with a consistent and growing dividend history. These stocks provide a reliable income stream, acting as a buffer during market downturns and contributing to overall portfolio stability.
To guide investors interested in the railroad industry, we came up with certain parameters using the Zacks Stocks Screener. We shortlisted transportation stocks based on the following:
a) A dividend payout ratio of less than 60% (the dividend payout ratio — dividends paid/net income — gives the proportion of earnings paid out as dividends to shareholders. A payout ratio below 60 looks quite sustainable).
b) A dividend yield of greater than 2% (dividend yield denotes the percentage of a company’s share price that it shells out as dividends annually).
The selected stocks have exhibited dividend growth in the past five years, apart from currently carrying a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Union Pacific: Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. Currently, UNP has a market capitalization of $130.52 billion.
UNP’s quarterly dividend of $1.38 ($5.52 annualized) per share, which gives it a 2.44% yield at the current stock price. The company’s payout ratio is 47% of its earnings at present. The five-year dividend growth rate is 7.19%. (Check Union Pacific’s dividend history here).
UNP has paid dividends on its common stock for 126 consecutive years, reflecting its pro-shareholder approach. Union Pacific’s consistent initiatives to reward its shareholders through dividends and share repurchases look encouraging. In 2022, UNP paid dividends worth $3.16 billion and repurchased shares worth $6.28 billion.
In 2023, the company returned $3.9 billion to its shareholders through dividends ($3.2 billion) and buybacks ($0.7 billion). During 2024, UNP paid $3.21 billion in dividends and repurchased shares worth $1.50 billion. During the first half of 2025, UNP paid $1.59 billion in dividends and repurchased shares worth $2.67 billion.
For 2025, Union Pacific's long-term capital allocation strategy remains unchanged, with a capital plan of $3.4 billion and share repurchases ranging from $4 to $4.5 billion.
Canadian National: Based in Montreal, Canada, Canadian National is involved in the rail, intermodal, trucking, and marine transportation and logistics business in Canada and the United States. Currently, CNI has a market capitalization of $58.19 billion.
CNI’s quarterly dividend leads to $2.59 per share (annualized), which gives it a 2.78% yield at the current stock price. This company’s payout ratio is 50% of its earnings at present. The five-year dividend growth rate is 7.31%. (Check Canadian National’s dividend history here).
CNI’s consistent efforts to reward its shareholders via dividends and buybacks are encouraging and highlight the company's financial strength. In 2022, CNI paid dividends of C$2.00 billion and repurchased shares worth C$4.71 billion. In 2023, CNI paid dividends of C$2.07 billion and repurchased shares worth C$4.55 billion. During 2024, CNI paid dividends of C$2.14 billion and repurchased shares worth C$2.60 billion.During the first half of 2025, CNI paid dividends of C$1.11 billion and repurchased shares worth C$444 million.
Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
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Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index.Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
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Talen Energy and Wendy's have been highlighted as Zacks Bull and Bear of the Day

The Zacks Transportation - Rail industry’s participants are being weighed down by challenges like inflation-induced elevated interest rates, concerns pertaining to supply-chain disruptions and the slowdown of economic growth. Most industry players are looking to drive their bottom line amid the headwinds through cost reduction.
Partly due to these headwinds, the industry has declined 8.2% over the past year against the S&P 500 Index’s 26.2% appreciation. The broader Zacks Transportation sector has plunged 3.1% in the said time frame.
Image Source: Zacks Investment Research
Despite the challenges surrounding the industry,some railroad companies like Union Pacific Corporation UNP and Norfolk Southern Corporation NSC have consistently paid dividends to their shareholders, thus highlighting their pro-shareholder stance.
Dividend growth stocks generally belong to mature companies, which are less susceptible to significant market swings, and act as a hedge against uncertainty-induced stock market volatility as is the case currently. They offer downside protection with their consistent increase in payouts.
Additionally, these companies generally have strong fundamentals like a sustainable business model, a long track of profitability, rising cash flows, good liquidity and a strong balance sheet.
How to Pick Stocks With Solid Dividend Payouts?
In order to choose some of the best dividend stocks from the aforementioned industry, we have run the Zacks Stock Screener to identify stocks with a dividend yield in excess of 2% and a sustainable dividend payout ratio of less than 60%. Each stock mentioned below presently carries a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Union Pacific: Headquartered in Omaha, NE, Union Pacific, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. Currently, UNP has a market capitalization of $139.40 billion.
UNP pays a quarterly dividend of $1.34 ($5.36 annualized) per share, which gives it a 2.33% yield at the current stock price. The company’s payout ratio is 49% of its earnings at present. The five-year dividend growth rate is 8.75%. (Check Union Pacific’s dividend history here).
Union Pacific Corporation Dividend Yield (TTM)
UNP has paid dividends on its common stock for 125 consecutive years, reflecting its pro-shareholder approach. Union Pacific’s consistent initiatives to reward its shareholders through dividends and share repurchases look encouraging. In 2022, UNP paid dividends worth $3.16 billion and repurchased shares worth $6.28 billion. In 2023, the company returned $3.9 billion to its shareholders through dividends ($3.2 billion) and buybacks ($0.7 billion). During the first nine months of 2024, UNP paid $2.40 billion in dividends and repurchased shares worth $831 million. Notably, management expects to buyback shares worth $1.5 billion in 2024.
Norfolk Southern: Headquartered in Atlanta, GA, Norfolk Southern engages in the rail transportation of raw materials, intermediate products and finished goods in the United States. Currently, NSC has a market capitalization of $53.22 billion.
NSC pays a quarterly dividend of $1.35 ($5.40 annualized) per share, which gives it a 2.30% yield at the current stock price. This company’s payout ratio is 46% of its earnings at present. The five-year dividend growth rate is 10.48%. (Check Norfolk Southern’s dividend history here).
Norfolk Southern Corporation Dividend Yield (TTM)
Norfolk Southern's consistent initiatives to reward its shareholders look encouraging. During the first nine months of 2024, NSC paid dividends worth $915 million. In 2023, the company paid dividends worth $1.23 billion and repurchased and retired common stock worth $622 million. During 2022, Norfolk Southern paid dividends worth $1.17 billion and repurchased and retired common stock worth $3.11 billion.
Such shareholder-friendly moves indicate the company’s commitment to creating value for shareholders and underline its confidence in its business.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Dividend Paying Stocks From the Railroad Industry You Should Count On

CSX Corporation (CSX) is currently grabbing everyone’s eyeballs after facing criticism from its investors due to its lackluster performance and failure to engage in merger talks to strengthen its foothold in the railroad industry.
In a letter to CSX’s independent members of the board of directors, activist investor Ancora Holdings has expressed its concerns and dissatisfaction over CSX’s current deteriorating operational performance under chief executive officer (CEO) Joe Hinrichs.
The letter clearly states how CSX is failing to generate higher shareholder returns since 2022 (as compared to previous years); grappling with awful operating ratios, ranging from 58% (when Mr. Hinrichs joined) in 2022 to approximately 67% year to date; lack of competent and experience employees and failure to grab the opportunity of seeking a railroad merger in the industry.
Ancora Holdings’ thoughts about CSX CEO have been supported by analysts, customers, former industry executives, retired regulators, and an array of current and prospective shareholders, who all agree on the fact that CSX has come down to the current difficult position.
Apart from this aforesaid ongoing disappointing scenario of CSX, Ancora Holdings is highly stressed about the fact that once Norfolk Southern Corporation NSC and Union Pacific Corporation UNP start operating, if their merger materializes, CSX’s operations would be hurt. As a result, Ancora Holdings is urging CSX’s board to explore merger options.
Ancora Holdings suggests discussions with both BNSF Railway Company and Canadian Pacific Kansas City Limited (CP) to explore all merger options for maximizing shareholder value. While BNSF being a cash buyer can bring a highly disciplined approach to any negotiations, CPKC might prove beneficial for CSX as it gears up to compete in a new railroading environment.
Given this backdrop, we keenly await seeing in which direction CSX finally heeds, whether it chooses to go for merger options (as stressed by investors) or it opts for any other strategic business move to stand still in the railroad industry. The upcoming weeks are highly crucial for CSX’s management team.
Currently, CSX, CP and UNP carry a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
NSC carries a Zacks Rank #4 (Sell).
CSX’s Share Price Movement
Shares of CSX scaled a 52-week high of $37.25 in the trading session on Aug. 19, 2025, before closing a tad lower at $36.52. The surge comes on the heels of Ancora Holdings’ interest in the stock.
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Will CSX Explore Merger Options Post Pressure From Activist Investor?

In a shareholder-friendly move, Werner Enterprises, Inc. (WERN) board of directors approved a new share repurchase program. Per the new program, WERN is now authorized to repurchase up to 5 million shares.
On approval of this new program, Werner’s board has withdrawn the earlier share repurchase authorization, which had almost 1.8 million shares remaining available for repurchase as of June 30, 2025 (unveiled during WERN’s second-quarter 2025 earnings release on July 29, 2025). The new authorization is expected to continue until the company’s board announces its withdrawal.
Apart from the share buyback announcement, Werner’s board also declared a regular quarterly cash dividend of 14 cents per share. This dividend will be paid on Oct. 22, 2025, to shareholders of record at the close of business on Oct. 6, 2025. Werner has been paying a quarterly cash dividend to its shareholders every quarter since July 1987.
Werner Enterprises, Inc. Dividend Yield (TTM)
With the quarterly dividend of 14 cents per share (annualized 56 cents per share), WERN's dividend yield is currently pegged at 2.15%. The five-year dividend growth rate is 10.12%.
The aforesaid announcements reflect WERN’s intention to utilize free cash to enhance its shareholders’ returns.
Notably, WERN has been consistently making efforts to reward its shareholders through dividends and share buybacks, which are encouraging. As a reflection of its shareholder-friendly stance, in 2022, WERN paid dividends of $32.1 million and repurchased shares worth $110.4 million. In 2023, WERN paid dividends of $34.20 million (did not repurchase any shares). In 2024, WERN paid dividends of $35.1 million and repurchased shares worth $67.1 million. During the first half of 2025, WERN paid $17.32 million in dividends and repurchased shares worth $55.56 million.
We believe such shareholder-friendly initiatives should boost investor confidence and positively impact thisZacks Rank #3 (Hold) company’s bottom line. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
WERN's Share Price Movement
Shares of WERN have performed well on the bourse on July 12, 2025, closing the trading session at $27.54 per share, which is up 5.80% from the previous day's closing. The surge comes on the heels of the new share repurchase authorization announcement by WERN’s board of directors, reflecting investor confidence in the stock.
Shareholder-Friendly Moves Announced by Other Transportation Companies in 2025
WERN is not the only player from theZacks Transportation sector that has rewarded its shareholders with dividend payouts or share buyback programs in 2025.
To name a few, on July 16, 2025, Union Pacific Corporation’s (UNP) board of directorsapproved a dividend hike of 3%, thereby raising its quarterly cash dividend to $1.38 per share ($5.52 annualized) from $1.34 ($5.36 annualized). The raised dividend will be paid on Sept. 30, 2025, to shareholders of record at the close of business on Aug. 29. The move reflects UNP’s intention to utilize free cash to enhance its shareholders’ returns. We would like to remind investors that UNP has paid dividends for 126 consecutive years.
On July 10, 2025,Ryder System, Inc.’s (R) board of directors approved a dividend hike of 12%, thereby raising its quarterly cash dividend to 91 cents per share ($3.64 annualized) from 81 cents ($3.24 annualized). The raised dividend will be paid out on Sept. 19, 2025, to shareholders of record as of the close of business on Aug. 18, 2025. The move reflects R’s intention to utilize free cash to enhance its shareholders’ returns.
R's latest dividend hike is the first increase since July 2024, implying the company’s confidence in its financial footing. This marks Ryder’s 196th consecutive quarterly cash dividend. Notably, Ryder has been making uninterrupted dividend payments for more than 49 years.
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Werner Rewards Shareholders With New Share Repurchase Authorization

(RTTNews) - Union Pacific Corp. (UNP) and Norfolk Southern Corp. (NSC) announced Tuesday an agreement to create America's first transcontinental railroad.
Union Pacific will acquire Norfolk Southern in a cash and stock transaction, implying a value for Norfolk Southern of $320 per share, based on Union Pacific's unaffected closing stock price on July 16, 2025.
Norfolk Southern shareholders will receive $88.82 in cash and 1.0 Union Pacific common share for each share of Norfolk Southern. The cash portion of the transaction will be funded through a combination of new debt and balance sheet cash.
Union Pacific will issue a total of approximately 225 million shares to Norfolk Southern shareholders, representing 27% ownership in the combined company on a fully diluted basis.
The value per share implies an enterprise value of $85 billion for Norfolk Southern, resulting in the creation of a combined enterprise of over $250 billion.
The combined company will seamlessly connect over 50,000 route miles across 43 states from the East Coast to the West Coast, linking approximately 100 ports and nearly every corner of North America.
The combined company will deliver faster, more comprehensive freight service to U.S. shippers by eliminating interchange delays, opening new routes, expanding intermodal services, and reducing distance and transit time on key rail corridors.
Union Pacific and Norfolk Southern shareholders are expected to realize significant value from the transaction, including more than $30 billion of potential value creation through the expected achievement of approximately $2.75 billion in annualized synergy opportunity.
The transaction is expected to be accretive to Union Pacific's adjusted EPS per share in the second full year after closing and rising to high single digit accretion thereafter.
The Board of Directors of both Union Pacific and Norfolk Southern unanimously approved the transaction, which is subject to STB review and approval within its statutory timeline, customary closing conditions, and shareholder approval.
The companies are targeting closing the transaction by early 2027. The agreement is structured without a voting trust and includes a $2.5 billion reverse termination fee.
Jim Vena, Union Pacific CEO, will lead the combined company as Chief Executive Officer and has committed his intent to remain at Union Pacific for at least the next 5 years. The experienced Union Pacific and Norfolk Southern management teams will continue to independently run each company until the transaction's closing
At closing, three Norfolk Southern Directors, including Mark George and Richard Anderson, are expected to join the Union Pacific Board of Directors after completing the corporate governance process.
The combined company will be headquartered in Omaha, Nebraska. Atlanta, Georgia will remain a core location for the combined organization over the long-term.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Union Pacific To Acquire Norfolk Southern In $320/shr Cash And Stock Deal

(RTTNews) - Union Pacific Corp. (UNP) is nearing a stock-and-cash acquisition deal for Norfolk Southern Corp. (NSC), valuing the smaller rival at approximately $320 per share, according to Bloomberg, citing sources familiar with the matter.
The proposed offer would consist of roughly two-thirds stock and one-third cash, representing a premium of about 23% over Norfolk Southern's share price prior to initial reports of the potential deal earlier this month, the report said.
Although discussions between the two companies are at an advanced stage, the terms of the deal could still change, the report noted.
Last week, both Union Pacific and Norfolk Southern confirmed they were engaged in advanced talks regarding a possible business combination.
NSC closed Monday's regular trading at $286.42 up $4.04 or 1.43%. In the after-hours trading, the stock further gained $10.58 or 3.69%.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Union Pacific Nears $320/shr Stock-and-Cash Deal For Norfolk Southern : Report

Canadian National Railway Company CNI reported second-quarter 2025 results, wherein both earnings and revenues lagged the Zacks Consensus Estimate. The development, naturally, disappointed investors, with the stock declining 4.9% since the earnings release on July 22.
Image Source: Zacks Investment Research
The earnings of $1.35 per share (C$1.87), which missed the Zacks Consensus Estimate of $1.37, remained flat on a year-over-year basis. Revenues for the second quarter of 2025 were $3.09 billion (C$4.3 billion), which missed the Zacks Consensus Estimate of $3.16 billion and declined 2.4% year over year.
Revenue ton-miles (RTMs or a measure of volumes) decreased 1% year over year. Carloads dropped 0.4% on a year-over-year basis. Freight revenue per RTM inched down 0.3% year over year.
Canadian National Railway Company Price, Consensus and EPS Surprise
Operating expenses for the second quarter of 2025 fell 5.2% from the year-ago figure. This was mainly due to prudent cost-cutting efforts.
The operating income for the second quarter of 2025 grew 4.9% from the second quarter of 2024 actuals. The operating ratio, defined as operating expenses as a percentage of revenues on an adjusted basis, improved 0.5 points to 61.7% in the second quarter of 2025.
CNI’s Q2 Segmental Highlights
Freight revenues, which contributed 95.7% to the top line, decreased 1.5% year over year. Freight revenues in petroleum and chemicals, metals and minerals, forest products, intermodal and automotive fell 5%,7%, 8%, 3% and 6%, year over year, respectively.
Revenues from grain and fertilizers rose 13% compared with 2024 figures. Revenues from the coal segment remained flat year over year.
Segment-wise, carloads in petroleum and chemicals, metals and minerals, forest products and automotive segments decreased 5%, 3%, 8% and 5%, respectively. The same in the grain and fertilizers, and intermodal segments rose 9% and 1% year over year. Carloads in the coal segment remained flat on a year-over-year basis.
CNI’s Liquidity
Canadian National ended the first quarter with cash and cash equivalents of C$216 million compared with C$389 million at the end of the fourth quarter of 2024. CNI exited the second quarter with a long-term debt of C$19.3 billion compared with C$19.7 billion at the end of the December-end quarter of 2024.
CNI generated C$1.75 billion of cash from operating activities. Free cash flow was C$922 million.
Under its current Normal Course Issuer Bid (“NCIB”), CNI may repurchase up to 20 million common shares between Feb. 4, 2025 and Feb. 3, 2026. As of March 31, 2025, CNI had repurchased 2.2 million common shares for $300 million under its current NCIB.
CNI repurchased 13.9 million common shares under its previous NCIB, including 0.6 million common shares in the first quarter of 2025, which allowed for the repurchase of up to 32 million common shares between Feb. 1, 2024 and Jan. 31, 2025.
CNI’s Outlook
For full-year 2025, CNI anticipates delivering a mid to high-single-digit range of adjusted earnings per share (EPS) growth compared to its previous guided range of 10%-15% and plans to invest approximately C$3.4 billion in its capital program, net of amounts reimbursed by customers.
In view of the revised 2025 guidance, and ongoing macroeconomic uncertainty and volatility stemming from shifting trade and tariff policies, CNI is withdrawing its financial outlook for the 2024-2026 period.
CNI’s Zacks Rank
Currently, CNI carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Union Pacific Corporation’s UNP second-quarter 2025 earnings (excluding 12 cents from non-recurring items) of $3.03 per share beat the Zacks Consensus Estimate of $2.91. The bottom line improved 10.6% on a year-over-year basis. This year-over-year improvement was due to strong operational efficiency.
Operating revenues of $6.2 billion marginally beat the Zacks Consensus Estimate of $6.1 billion. The top line improved 2.5% on a year-over-year basis owing to higher volumes and solid core pricing gains.
United Airlines Holdings, Inc. UAL reported mixed second-quarter 2025 results, wherein the company’s earnings beat the Zacks Consensus Estimate, but revenues missed the same.
UAL's second-quarter 2025 adjusted earnings per share (excluding 90 cents from non-recurring items) of $3.87 surpassed the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25.
Operating revenues of $15.2 billion fell short of the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year.
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Canadian National Stock Falls 4.9% Since Q2 Earnings & Revenue Miss

Union Pacific Corporation’s UNP second-quarter 2025 earnings (excluding 12 cents from non-recurring items) of $3.03 per share beat the Zacks Consensus Estimate of $2.91. The bottom line improved 10.6% on a year-over-year basis. This year-over-year improvement was due to strong operational efficiency.
Operating revenues of $6.2 billion marginally beat the Zacks Consensus Estimate of $6.1 billion. The top line improved 2.5% on a year-over-year basis, owing to higher volumes and solid core pricing gains.
Union Pacific Corporation Price, Consensus and EPS Surprise
Freight revenues, accounting for 95% of the top line, improved 4% to $5.8 billion. The actual figure surpassed our estimate of $5.67 billion. Other revenues decreased 16% to $311 million in the second quarter of 2025. Business volumes, measured by total revenue carloads, increased 4% year over year. The operating income was up 5% year over year at $2.5 billion.
Total operating expenses of $3.6 billion inched up 1% year over year. Fuel expenses decreased 8%. Expenses on purchased services and materials were flat, expenses on compensation and benefits increased 5% and other cost items declined 5% year over year.
The operating ratio (operating expenses as a percentage of revenues) in the second quarter of 2025, on an adjusted basis, improved 230 basis points year over year to 58.1%.
UNP’s Segmental Highlights
Bulk (Grain & grain products, Fertilizer, Food & refrigerated, Coal & renewables) freight revenues were $1.9 billion, which increased 10% on a year-over-year basis. We projected the metric to increase 3.1% from the year-ago levels. Segmental revenue carloads increased 11% year over year.
Industrial freight revenues totaled $2.2 billion, up 4% year over year. We projected the metric to increase 3% from the year-ago levels. Segmental revenue carloads increased 3% to $569 million year over year.
Freight revenues in the Premium division were $1.73 billion, down 4% year over year. We expected the metric to decrease 4.9% compared with the year-ago reported figure. Premium revenue carloads improved 1% year over year.
UNP’s Liquidity
Union Pacific exited the second quarter of 2025 with cash and cash equivalents of $1.06 billion compared with $1 billion at 2024 end. Debt (due after a year) increased to $30.3 billion in the June-end quarter from $29.6 billion at 2024’s end.
Currently, Union Pacific carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
UNP-NSC Merger Update
Union Pacific confirmed that it is engaged in advanced discussions with fellow railroad operator Norfolk Southern NSC regarding a potential business combination. No further details were given.
Earlier this year, Union Pacific, chief executive officer, Jim Vena, hinted at the possible profits that are likely to result from such a merger. This includes the enhancement of transfer-based bottlenecks in places like Chicago, where West Coast and East Coast operators often offload cargo to be transferred to another operator’s network.
Q2 Performance of Other Transportation Companies
Delta Air Lines DAL reported second-quarter 2025 earnings (excluding $1.17 from non-recurring items) of $2.10 per share, which beat the Zacks Consensus Estimate of $2.04. Earnings decreased 11% on a year-over-year basis due to high labor costs.
Revenues in the June-end quarter were $16.65 billion, which beat the Zacks Consensus Estimate of $16.2 billion and decreased marginally on a year-over-year basis. Adjusted operating revenues (excluding third-party refinery sales) increased 1% year over year to $15.5 billion.
United Airlines’ UAL second-quarter 2025 adjusted EPS (excluding 90 cents from non-recurring items) of $3.87 beat the Zacks Consensus Estimate by a penny but declined 6.5% on a year-over-year basis. The reported figure lies within the guided range of $3.25-$4.25 per share.
Operating revenues of $15.2 billion missed the Zacks Consensus Estimate of $15.4 billion but increased 1.7% year over year. Passenger revenues (which accounted for 90.8% of the top line) increased 1.1% year over year to $13.8 billion. UAL flights transported 46,186 passengers in the second quarter, up 4.1% year over year.
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Union Pacific Q2 Earnings & Revenues Surpass Estimates, Rise Y/Y

(RTTNews) - Norfolk Southern (NSC) and Union Pacific (UNP) confirmed that they are engaged in advanced talks regarding a potential business combination. The companies stated that they do not intend to make additional comments or provide an update on this matter unless and until they determine that disclosure is required.
Separately, Union Pacific affirmed its 2025 outlook, and stated that its EPS growth is consistent with attaining the 3-year CAGR target of high-single to low-double digit. The company noted that there is no change to long-term capital allocation strategy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Norfolk Southern, Union Pacific Confirm Talks Regarding Potential Merger

Union Pacific (UNP) came out with quarterly earnings of $3.03 per share, beating the Zacks Consensus Estimate of $2.89 per share. This compares to earnings of $2.74 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +4.84%. A quarter ago, it was expected that this railroad would post earnings of $2.73 per share when it actually produced earnings of $2.7, delivering a surprise of -1.1%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Union Pacific, which belongs to the Zacks Transportation - Rail industry, posted revenues of $6.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.72%. This compares to year-ago revenues of $6.01 billion. The company has topped consensus revenue estimates just once over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Union Pacific shares have added about 1.3% since the beginning of the year versus the S&P 500's gain of 8.1%.
What's Next for Union Pacific?
While Union Pacific has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Union Pacific was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.96 on $6.21 billion in revenues for the coming quarter and $11.57 on $24.57 billion in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Transportation - Rail is currently in the top 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Another stock from the same industry, Norfolk Southern (NSC), has yet to report results for the quarter ended June 2025. The results are expected to be released on July 29.
This railroad is expected to post quarterly earnings of $3.26 per share in its upcoming report, which represents a year-over-year change of +6.5%. The consensus EPS estimate for the quarter has been revised 2.2% lower over the last 30 days to the current level.
Norfolk Southern's revenues are expected to be $3.13 billion, up 3% from the year-ago quarter.
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