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 демонстрирует сильную финансовую позицию в ряде ключевых метрик, таких как ROE и ROA, которые значительно превышают медианные значения по отрасли, что указывает на эффективное использование капитала и активов. Высокие показатели маржи прибыли также свидетельствуют о способности компании генерировать прибыль, что является положительным фактором для ее оценки. Однако высокий уровень P/E, P/B и P/S в сравнении с отраслевыми медианами может указывать на переоцененность акций. Долговая нагрузка также вызывает опасения, так как коэффициент долга к капиталу значительно выше медианы, что может увеличивать финансовые риски. Дивидендная доходность ниже отраслевых стандартов, что может негативно сказаться на привлекательности акций для доходных инвесторов. Тем не менее, рост выручки и чистой прибыли по годам подтверждает устойчивость бизнеса. В целом, несмотря на некоторые негативные аспекты, сильные финансовые показатели и высокие маржи позволяют сохранить позитивный взгляд на компанию в долгосрочной перспективе.

Union Pacific Corporation

Both Union Pacific UNP and United Parcel Service UPS delivered better-than-expected first-quarter 2026 results, but the quality and trajectory of growth diverged meaningfully.
UNP reported revenues of $6.22 billion, up 3.2% year over year, marginally beating the Zacks Consensus Estimate. 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.
UPS’ quarterly earnings per share (excluding 5 cents from non-recurring items) of $1.07 beat the Zacks Consensus Estimate of $1.04 but declined 28.2% year over year. Revenues of $21.2 billion surpassed the Zacks Consensus Estimate of $21 billion but decreased 1.6% year over year.
Given this backdrop, let’s take a closer look at how UNP and UPS are placed now and which stock appears to be the smarter pick currently.
The Case for UNP
The year-over-year increase in Union Pacific’s operating revenues in the March quarter was driven by core pricing gains, fuel surcharge revenues and business mix despite carrying less freight than a year ago.
Freight revenues increased 4%. Excluding fuel surcharge, the metric grew 3%. The company's adjusted operating ratio (operating expenses as a % of revenues) improved 80 basis points from a year ago to 59.9%. Overall volume declined 1% in the March quarter, mainly due to a 9% slump in premium traffic, which includes intermodal and automotive business.
Locomotive productivity increased 6% to 144 gross ton-miles per horsepower day. Fuel consumption rate improved 4% to 1.064. Workforce productivity increased 7% to 1,163 car miles per employee. The railroad also excelled in terms of safety, with train accidents and employee injury rates improving.
The recovery in the freight scenario is a huge positive for railroads like Union Pacific. Highlighting improving freight demand, the Cass Freight Shipments Index gained 3% month-to-month in March 2026. At Union Pacific, freight revenues account for most (94.8% in the first quarter of 2026) of the top line.
The company reaffirmed its 2026 outlook. With respect to earnings per share, the railroad still expects to attain 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. The company aims to continue generating strong cash while increasing annual dividend payouts.
The earnings beat by UNP in the first quarter of 2026 was its third bottom-line outperformance in the last four quarters. The railroad operator’s earnings missed the Zacks Consensus Estimate in the other quarter. The average beat is 2.3%.
The Case for UPS
Despite reporting better-than-expected earnings and revenues in the first quarter of 2026, UPS’ shares fell after the results on April 28. The decline was primarily due to management’s warning that elevated fuel prices due to the Iran war could eventually hurt demand.
For the second quarter of 2026, UPS expects the U.S. Domestic segment’s revenues to be up low single digits and operating margin to be between 7.5% and 8.5%. Revenue growth in the International segment for the June quarter is anticipated in the low single digits year over year, driven by a solid increase in revenue per piece. Operating margin in the International segment is expected in the 13-14% band. In the Supply Chain Solutions segment, second-quarter revenues are expected to be up low single digits year over year and operating margin between 9.5% and 10.5%.
For the full-year 2026, UPS expects the U.S. Domestic segment’s revenues as well as adjusted operating margin to be flat year over year. Revenue growth in the International segment for 2026 is anticipated in the low single digits year over year. Operating margin in the International segment is expected to be in the mid-teens. In the Supply Chain Solutions segment, full-year revenues are expected to be up in the high single digits, which includes revenues from UPS’ Andlauer acquisition and operating margin in the low double digits.
The parcel delivery company still expects consolidated revenues of approximately $89.7 billion. Adjusted operating margin is still expected to be around 9.6%. Capital expenditures are estimated to be around $3 billion, with dividend payments expected to be around $5.4 billion (subject to board approval). The effective tax rate is expected to be around 23%.
The earnings beat by UPS in the first quarter of 2026 was its third bottom-line outperformance in the last four quarters. The company’s earnings missed the Zacks Consensus Estimate in the other quarter. The average beat is 10.6%.
UPS & UNP’s Price Performance, Valuation & Earnings Estimates
Shares of UNP have gained in double digits over the past six months. UPS’ shares have not performed well compared with UNP, gaining in the single digits in the same time frame.
6-Month Price Comparison
Image Source: Zacks Investment Research
UPS trades at a forward price-to-sales ratio of 6.07x compared with UPS’ 0.98x. Consequently, UNP shares appear to be more expensive. UNP currently carries a Value Score of D, while UPS holds a Value Score of B.
See how the Zacks Consensus Estimate for UNP and UPS earnings has been revised over the past 90 days.
Earnings Estimate Revisions for UNP
Image Source: Zacks Investment Research
Earnings Estimate Revisions for UPS
Image Source: Zacks Investment Research
End Note
Union Pacific’s cost-cutting efforts, improving freight demand scenario and shareholder-friendly approach justify its premium valuation. While United Parcel Service's long-term promise remains intact, its near-term outlook remains somewhat uneven.
While UPS is largely supported by increased focus on healthcare revenues and efficiencies driven by artificial intelligence, we note that the strategy shift by the shipping giant has resulted in a significant drop in average daily volumes in the first quarter of 2026.
Owing to the strategic shift, UPS has not increased the quarterly dividend this year, freezing it at $1.64 per quarter ($6.56 annually). UNP’s stronger share price performance also indicates that its cost-cutting efforts are translating into tangible benefits. Based on our analysis, UNP appears to be the more attractive option at present, even though both stocks currently carry a Zacks Rank #3 (Hold).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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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.

UPS or UNP: Which Transportation Stock Holds an Edge Post Q1 Earnings?

Few people realize it, but there's a way to take a "low" dividend yield and "convert" it to a payout four times higher. Maybe even more.
The stocks we need to get this "hidden" payout are hiding in plain sight. To find them, we need to be on the lookout for three key strengths:
A growing, and ideally accelerating, dividend.
A history of share buybacks, and ...
A high "shareholder yield," which combines the first two points (I'll come back to that in a second).
Even better if we can find a stock whose share price has fallen behind dividend growth. That way, we can grab some price upside to go along with our high "hidden" yield.
The best way for me to explain this strategy is to let you see it in action. Once we've done that, I'm sure you'll find it easy to put into practice and find more of these overlooked income plays on your own.
Let's start with a "low-yielding" railway whose stock has been on the siding for years:
Union Pacific's 2% Yield Jumps to 3.7% Now, 6.3% Later
Union Pacific (UNP) has hit wave after wave of challenges in the last few years: COVID-19 shipping disruptions, post-pandemic inflation and, more recently, trade worries. (UNP's track network dominates in the West and Midwest, including key ports at San Francisco and Long Beach, and stretches down into Mexico.)
As a result, the stock has more or less moved sideways since 2022, though it has thrown some coal in the boiler lately, on a potential merger with Norfolk Southern (NSC)--more on that in a moment.
For now, let's set aside the bluster around trade because the numbers say something else: In 2025, US imports from Mexico came in at $534.9 billion, according to the United States Trade Representative (USTR), up a healthy 5.8% from 2024. US exports to the country also gained, to the tune of 1.2%.
Moreover, the USMCA is up for review this year. While there's been a lot of hand-wringing here, unless the US walks away--unlikely, without the support of Congress and in light of higher inflation--the deal does not disappear. It'll simply be up for annual review until 2036, unless extended.
Trade misunderstandings alone make UNP a bargain. The "hidden" yield we're going to get into now makes it even more intriguing.
As I write this, UNP sports a current yield of just 2%, not enough to get our hearts racing. But that number masks dividend growth: In the last decade, UNP's payout has shot up 151%. So anyone who bought in the spring of 2016 is yielding a lot more than 2%--closer to 6.3% on their original buy.
Moreover, in the last five years, UNP's share price has fallen behind its dividend. That sets it up for "snap-back" gains--especially as management has restarted dividend hikes:
UNP's Dividend Magnet Powers Up
I expect those hikes to continue as UNP gets more efficient: Its adjusted operating ratio--the lower the better--fell to 59.9% in the latest quarter, down from 60.7% a year ago. Freight revenue jumped 4% and adjusted EPS popped 8.5%.
Meantime, we don't even have to wait a decade for dividend growth to "convert" UNP's 2% yield into something much higher.
This is where "shareholder yield" comes in.
It's a complete measure of how a stock rewards us. You calculate it by taking the amount spent on buybacks and dividends in the last 12 months, deducting share issuances, then dividing into the company's market cap.
This makes a big difference for a company like UNP, which emphasizes buybacks: In the last 12 months, management repurchased $2.7 billion of its own stock and spent $3.2 billion on dividends (with no issuances). The total--$5.9 billion--is 3.7% of the company's $158.7 billion market cap. That's 85% higher than UNP's current yield, and a much better measure of what we're really getting here.
Big Merger Could Unlock More Upside
As I touched on a second ago, UNP is working to convince regulators to approve its proposed merger with Norfolk Southern (NSC) for $85 billion cash and stock. It's far from clear they'll agree, but UNP's prospects look strong either way.
If the deal fails, UNP is left with its already-strong business. If it passes, the company's strong balance sheet will help it integrate Norfolk Southern. Plus, both railroads generated about $4.5 billion in combined free cash flow last year. Going forward, that would also help defray the deal's cost.
And of course, the combined company would boost its pricing power, too.
But that's further down the tracks. Right now, the thing to remember is that the company's 2% yield is just a starting point. Shareholder yield gives it a kick higher right away, then dividend and buyback growth work their magic as time goes on.
Illinois Tool Works' 2.4% Yield Flips to 4.2%, Then "Stair Steps" to 6.2%+
Illinois Tool Works (ITW) is another "boring" dividend stock that fits nicely with our shareholder yield/dividend-growth formula.
The company has a place in countless industrial businesses, churning out everything from fasteners and plastic car parts to commercial kitchen equipment, welding materials and gear for testing electronics.
ITW's current yield looks a lot like that of UNP, around 2.4% today. But also as with UNP, this number masks two other--and more important--drivers of shareholder returns: dividend growth and buybacks.
Let's start with payout growth, as ITW has one of the strongest Dividend Magnets out there:
ITW's Share Price Is Bolted to Its Payout
That's about as clear as the dividend/share-price relationship gets! Every time the share price falls behind (as it has now), it snaps back above the dividend in short order.
And of course, there's the effect that payout has on yield on cost, and it's substantial: Anyone who bought 10 years ago is getting nearly triple the stock's current yield out of their upfront investment: a stout 6.7%.
Not bad! And with revenue up 4% in the latest quarter, the business generating solid operating margins of 26.5% and EPS popping 7%, we can expect more payout growth.
But let's bring it back to today and talk shareholder yield. It's particularly important here because ITW spends nearly as much on buybacks ($1.5 billion in the last year) as it does on dividends ($1.8 billion). Add those two together ($3.3 billion) and divide into ITW's $78.7 billion market cap and you get a shareholder yield of 4.2%.
That's a much more realistic (and frankly better!) place to start than the stock's 2.4% current yield. Anyone buying now can then sit back and let management's ongoing dividend (and buyback) hikes drive their shareholder yield higher.
5 More Stocks With Surging Payouts (and Big Shareholder Yields, Too)
UNP and ITW are solid. But I've uncovered 5 other stocks that are further along the curve, with high shareholder yields and faster payout growth.
I expect them to announce their next big dividend hikes in the coming weeks and months. And if history is any guide (it is!), their share prices will rise immediately after.
We want to get in before that happens. Click here and I'll give you my full "Dividend Magnet" strategy and send you a free Special Report revealing these 5 stocks' names and tickers.
Also see:
Warren Buffett Dividend Stocks
Dividend Growth Stocks: 25 Aristocrats
Future Dividend Aristocrats: Close Contenders
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

How to "Convert" a 2% Yield Into 6% (No Work Required)

U.S. stocks closed lower on Thursday as rising geopolitical tensions and uncertainty around Iran weighed on sentiment, while investors continue to evaluate earnings results and economic data. The Nasdaq Composite, the S&P 500 and the Dow all ended in negative territory.
How Did The Benchmarks Perform?
The Dow Jones Industrial Average (DJI) fell 0.4%, or 179.71 points, to close at 49,310.32. Fourteen components of the 30-stock index ended in negative territory, and 16 ended in positive territory.
The major loser of the Dow was Salesforce, Inc. CRM. The stock price of this customer relationship management company fell 17.8%. Salesforce currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank stocks here.
The tech-heavy Nasdaq Composite declined 0.9%, to close at 24,438.50.
The S&P 500 lost 0.4% or 29.50 points, to end at 7,108.40. Out of 11 broad sectors of the broad-market index, six ended in negative territory, and five ended in positive territory. The Information Technology Select Sector SPDR (XLK), the Consumer Discretionary Select Sector SPDR (XLY) and the Financials Select Sector SPDR (XLF) fell 1.5%, 0.9%, and 0.8%, respectively, while the Consumer Staples Select Sector SPDR (XLP) rose 1.7%.
The fear gauge, the CBOE Volatility Index (VIX), increased by 2.1% to 19.31. A total of 17.41 billion shares were traded on Thursday, lower than the last 20-session average of 18.33 billion. The S&P 500 posted 41 new 52-week highs and eight new lows, and the Nasdaq Composite recorded 124 new highs and 103 new lows.
Uncertainty Grows Around Iran Talks
Iranian politician Mohammad Bagher Ghalibaf has pulled out of the Iranian team negotiating with the United States, casting doubts on the progress of the ongoing talks, according to Reuters.
Donald Trump told the U.S. Navy to destroy any vessels attempting to lay mines in the Strait of Hormuz. These developments have kept market sentiment cautious with close attention to further geopolitical developments.
Q1 Earnings Results in Focus
American Airlines Group Inc. AAL reported a first-quarter 2026 adjusted loss of $0.4 per share, missing the Zacks Consensus Estimate of $0.45. Quarterly net revenues were $13.91 billion, surpassing the Zacks Consensus Estimate by 0.72%.
American Express Company AXP reported first-quarter 2026 adjusted earnings of $4.28 per share, beating the Zacks Consensus Estimate of $4.03 per share. Quarterly net revenues were $18.91 billion, which outpaced the Zacks Consensus Estimate by 1.55%.
NextEra Energy, Inc. NEE reported first-quarter 2026 adjusted earnings of $1.09 per share, beating the Zacks Consensus Estimate of $0.98 per share. Quarterly net revenues came in at $6.7 billion, missing the Zacks Consensus Estimate by 7.01%.
Union Pacific Corporation UNP reported first-quarter 2026 adjusted earnings of $2.93 per share, outpacing the Zacks Consensus Estimate of $2.85 per share. Quarterly net revenues were $6.22 billion, above the Zacks Consensus Estimate by 0.14%.
Economic Data
In economic data released on Thursday, the Labor Department said that jobless claims totaled 214,000 for the week ending April 18, an increase of 6,000 from the previous week’s revised level of 208,000. The four-week moving average was 210,750, an increase of 750 from the previous week’s revised average of 210,000.
Continuing claims came in at 1,821,000, reflecting an increase of 12,000 from the previous week’s revised level of 1,809,000. The 4-week moving average was 1,812,250, an increase of 1,250 from the previous week's revised average of 1,811,000.
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Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
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American Express Company (AXP) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Stock Market News for Apr 24, 2026

Key Points
Tesla just confirmed the EV boom being driven by the spike in oil prices.
If oil prices remain elevated, alternative energy companies will benefit.
GE Vernova and Union Pacific look well-positioned as well.
Oil prices spiked when the U.S. attacked Iran and have been elevated since then as the Strait of Hormuz has remained closed.
The effects of $4/gallon gasoline in the U.S, higher diesel prices, and even higher fuel prices in Europe, Asia, and other parts of the world are shifting demand patterns.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Among the winners have been alternative energy companies that can help consumers and businesses save money. One of the biggest ones is Tesla (NASDAQ: TSLA), and we got an update from the EV maker Wednesday night.
The market initially cheered the results, sending the stock up higher before it fell on CEO Elon Musk's forecast of a "very significant" capex increase this year.
However, the EV business delivered strong results. Automotive revenue was up 16% to $16.2 billion, lapping a quarter in which Tesla experienced a backlash due to Musk's work with the Trump administration under DOGE.
Among the factors driving the strong EV sales were higher oil prices, as the company noted a surge in Europe, with deliveries up more than 150% quarter-over-quarter in countries like France and Germany. The Asian market was strong as well, with Japan and South Korea returning to growth. The company also reported its highest Q1 order backlog in more than two years.
CFO Vaibhav Taneja said, "The recent increase in gas prices has had a positive impact on the order rate," but also the improvement began before the increase in gas prices.
What is clear is that Tesla isn't the only EV company benefiting. Electric car sales jumped 51% in continental Europe, and EV sales also soared in Asia, with registrations more than doubling in South Korea in March.
2 other alternative energy stocks winning from high oil prices
The leading EV maker is one company that's benefiting from the jump in oil prices, but there are others that look well-positioned to capitalize on elevated prices.
GE Vernova (NYSE: GEV), for example, has been a standout winner since the former GE broke up two years ago, but the energy infrastructure company is well-situated for higher oil prices as alternative and renewable energy make up a significant part of its business. Its wind power segment generates rougly 30% of its revenue. Additionally, its strength in gas turbines is an attractive alternative to oil-based electricity generation in the current environment.
Railroad giant Union Pacific (NYSE: UNP) is also well positioned to benefit from high oil prices, as railroads are a more cost-effective mode of shipping than trucking, especially when prices are elevated. Union Pacific already operates in a duopoly in the western half of the U.S. with BNSF and generates huge operating margins.
The stock jumped on its first-quarter earnings report as it reported an adjusted operating margin of 40.1%, and it has the pricing power to continue to deliver strong results in an inflationary environment.
The ability to raise prices without losing customers is a key advantage during a time of geopolitical uncertainty. While Union Pacific isn't a high-growth stock, it makes up for it with a wide economic moat and reliable dividend income.
Should you buy stock in GE Vernova right now?
Before you buy stock in GE Vernova, consider this:
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Jeremy Bowman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends GE Vernova and Tesla. The Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

High Oil Prices Are Driving an EV Boom. Who's the Next Winner After Tesla?

Key Points
Efficiency gains are driving Union Pacific's profits higher.
Management is committed to rewarding shareholders with steadily growing dividends.
Shares of Union Pacific (NYSE: UNP) rose on Thursday after the railroad operator delivered solid quarterly results.
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Strong operational performance
Despite a volatile macroeconomic backdrop, Union Pacific's operating revenue increased 3% year over year to $6.2 billion in the first quarter.
With its rail network spanning 23 states and linking major U.S. ports and key gateways to Mexico, Union Pacific serves a vital role within the country's transportation system. That gives it pricing power, or the ability to raise prices above the rate of inflation.
These pricing gains, combined with fuel surcharges, helped to drive Union Pacific's freight revenue up by 4% to $5.9 billion.
Better still, Union Pacific is becoming more efficient. Its trains are getting faster, with freight car velocity rising 9% to 235 daily miles per car. They're also spending less time at rest, with average terminal dwell improving by 11% to 19.7 hours.
Importantly, the railroad's fuel consumption rate also improved by 4%, at a time when conflict in the Middle East has driven diesel prices sharply higher.
All told, Union Pacific's adjusted net income climbed 5% to $1.7 billion. The company's adjusted earnings per share, boosted by stock buybacks, jumped 9% to $2.93.
The merger is progressing
Looking ahead, Union Pacific reiterated its goals for 2026, including mid-single-digit earnings-per-share growth driven by continued efficiency gains. Management expects these profits to support steady annual increases in cash dividend payments to shareholders.
Union Pacific also remains on track to merge its primarily central and western U.S. operations with Norfolk Southern's eastern U.S. rail network.
"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," CEO Jim Vena said.
Should you buy stock in Union Pacific right now?
Before you buy stock in Union Pacific, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Union Pacific wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $502,837!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,241,433!*
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*Stock Advisor returns as of April 23, 2026.
Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool recommends Union Pacific. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Union Pacific Stock Popped Today

In trading on Thursday, railroads shares were relative leaders, up on the day by about 3.3%. Leading the group were shares of CSX, up about 6% and shares of Union Pacific up about 5.6% on the day.
Also showing relative strength are waste management shares, up on the day by about 2.8% as a group, led by Waste Connections, trading up by about 7.3% and Casella Waste Systems, trading up by about 4.3% on Thursday.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Thursday Sector Leaders: Railroads, Waste Management Stocks

Union Pacific Corporation UNP 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.
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 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 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.
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
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Union Pacific's Q1 Earnings Beat Estimates, Revenues Increase Y/Y

Pre-market futures are back down this morning, keeping the tone of a flattish trading week in positive territory but off Tuesday afternoon’s highs. The Dow is -271 points at this hour, -0.55%, while the S&P 500 and Nasdaq are both -0.31% — -22 points and -84 points, respectively. The small-cap Russell 2000 is currently -2 points, -0.06%.
The head of the U.S. Navy is stepping down “effective immediately” as skirmishes continue in the Strait of Hormuz today. It’s tempting to blame these occurrences on the temporary setback in equities futures, but the complexities in the Iran war continue to mount. We’re supposedly in a cease-fire position, but the Strait remains blocked by both Iranian and U.S. forces. It may be a while before all this is sorted out.
Weekly Jobless Claims Tick Up, Still in Good Shape
Thursday morning brings us the latest Initial Jobless Claims numbers, which ticked up to 214K from the expected 212K, and up a tad from the slightly upwardly revised 208K the prior week. From the December holiday season until now, we’ve definitely seen a step down in weekly jobless claims, below 220K. That said, this is the second week in a row on new claims increases.
Continuing Claims are also up two straight weeks, to 1.821 million from 1.809 million reported a week ago. These are still levels not seen since the lows back in September of 2024, so while jobless claims are flowing up slightly, they are still at rates consistent with a healthy job market. We know from other employment data, however, that this is not necessarily the case.
Q1 Earnings Update: TSLA, AAL, AXP & More
After yesterday’s close, Tesla TSLA posted surprises on both top and bottom lines for its Q1, with earnings of $0.41 per share beating the Zacks consensus by a solid nickel, and up nicely from the $0.27 per share reported in the year-ago quarter. This marks the third quarter in the past four where Tesla has beaten earnings estimates.
Revenues of $22.39 billion in the quarter came in ahead of expectations by +2.12%, and beyond the $19.34 billion reported a year ago. The European market has been good for electric vehicles (EVs), both with Tesla and Chinese EV makers. However, paying for xAI is taxing Tesla’s numbers, and as a result shares are trading down -3% ahead of the open.
Mostly we saw earnings beats for the companies reporting this morning. American Airlines AAL reported a 5-cent better-than-expected loss to -$0.40 per share in the quarter. American Express AXP posted a +6% earnings beat to $4.28 per share. NextEra Energy NEE saw profits go up to $1.09 per share — an +11% beat, while Honeywell HON and Union Pacific Railway UNP outpaced expectations by +6% and +2.8%, respectively.
After today’s close, we’ll hear from Intel INTC and gold miner Newmont Corp. NEM, among several others. The heart of Q1 earnings season is here!
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
NextEra Energy, Inc. (NEE) : Free Stock Analysis Report
Tesla, Inc. (TSLA) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Geopolitics Weigh on Sentiment

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Union Pacific UNP Q1 2026 Earnings Transcript

Thursday, April 23rd, 2026
Pre-market futures are back down this morning, keeping the tone of a flattish trading week in positive territory but off Tuesday afternoon’s highs. The Dow is -271 points at this hour, -0.55%, while the S&P 500 and Nasdaq are both -0.31% — -22 points and -84 points, respectively. The small-cap Russell 2000 is currently -2 points, -0.06%.
The head of the U.S. Navy is stepping down “effective immediately” as skirmishes continue in the Strait of Hormuz today. It’s tempting to blame these occurrences on the temporary setback in equities futures, but the complexities in the Iran war continue to mount. We’re supposedly in a cease-fire position, but the Strait remains blocked by both Iranian and U.S. forces. It may be a while before all this is sorted out.
Weekly Jobless Claims Tick Up, Still in Good Shape
Thursday morning brings us the latest Initial Jobless Claims numbers, which ticked up to 214K from the expected 212K, and up a tad from the slightly upwardly revised 208K the prior week. From the December holiday season until now, we’ve definitely seen a step down in weekly jobless claims, below 220K. That said, this is the second week in a row on new claims increases.
Continuing Claims are also up two straight weeks, to 1.821 million from 1.809 million reported a week ago. These are still levels not seen since the lows back in September of 2024, so while jobless claims are flowing up slightly, they are still at rates consistent with a healthy job market. We know from other employment data, however, that this is not necessarily the case.
Q1 Earnings Update: TSLA, AAL, AXP & More
After yesterday’s close, Tesla TSLA posted surprises on both top and bottom lines for its Q1, with earnings of $0.41 per share beating the Zacks consensus by a solid nickel, and up nicely from the $0.27 per share reported in the year-ago quarter. This marks the third quarter in the past four where Tesla has beaten earnings estimates.
Revenues of $22.39 billion in the quarter came in ahead of expectations by +2.12%, and beyond the $19.34 billion reported a year ago. The European market has been good for electric vehicles (EVs), both with Tesla and Chinese EV makers. However, paying for xAI is taxing Tesla’s numbers, and as a result shares are trading down -3% ahead of the open.
Mostly we saw earnings beats for the companies reporting this morning. American Airlines AAL reported a 5-cent better-than-expected loss to -$0.40 per share in the quarter. American Express AXP posted a +6% earnings beat to $4.28 per share. NextEra Energy NEE saw profits go up to $1.09 per share — an +11% beat, while Honeywell HON and Union Pacific Railway UNP outpaced expectations by +6% and +2.8%, respectively.
After today’s close, we’ll hear from Intel INTC and gold miner Newmont Corp. NEM, among several others. The heart of Q1 earnings season is here!
Questions or comments about this article and/or author? Click here>>
Zacks' Research Chief Names "Stock Most Likely to Double"
Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.
This top pick is a little-known satellite-based communications firm. Space is projected to become a trillion dollar industry, and this company's customer base is growing fast. Analysts have forecasted a major revenue breakout in 2025. Of course, all our elite picks aren't winners but this one could far surpass earlier Zacks' Stocks Set to Double like Hims & Hers Health, which shot up +209%.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Index	Bulls	Bears
Confidence		—
Support		—
Cash flows		—

	S/L 5%RUB 254.35	S/L 10%RUB 240.97	S/L 15%RUB 227.58
Day	1.00%	0.00%	0.00%
Week	24.91%	0.69%	0.00%
Month	57.39%	18.71%	3.41%

Union Pacific Corporation

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Long

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