Union Pacific profit climbed 5% as it builds the case for its
acquisition of rival Norfolk Southern
[April 24, 2026] By
JOSH FUNK
OMAHA, Neb. (AP) — Union Pacific delivered 5% higher earnings in the
first quarter as the railroad worked to prepare its case to convince
regulators that its $85 billion acquisition of eastern rival Norfolk
Southern is a good idea.
The Omaha, Nebraska-based railroad said Thursday that it earned $1.7
billion, or $2.87 per share, but it estimated that merger-related costs
weighed down the results by 6 cents per share. That's still up from last
year's $1.63 billion, or $2.70 per share. And the results topped the
$2.86 per share that the analysts surveyed by FactSet Research expected.
Union Pacific CEO Jim Vena said the railroad continued to get more
efficient during the quarter as it benefited higher rates even as it
prepared its case for the merger. Vena said he's even more convinced now
that creating the nation's first transcontinental railroad would be good
for customers and the country because Union Pacific will be able to
deliver goods more quickly at a lower cost.
“Service is going to be better. We provide more opportunity. We take
trucks off of the highway and our employees are guaranteed jobs,” Vena
said. “I think we’re more convicted now that this is good for country
and good for Union Pacific. And financially, it is good for our
shareholders.”
The railroad’s revenue grew 3% to $6.22 billion even though it hauled
about 1% fewer shipments. That’s because the rates it charges continued
to increase and the railroad benefited from fuel surcharge fees.
Union Pacific’s expenses also grew 3% to $3.76 billion.
The railroad affirmed its outlook for midsingle digit growth in its
earnings per share this year in line with its long-term plan. It plans
to invest $3.3 billion in its operation.
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A Union Pacific worker walks between two locomotives that are being
serviced in a railyard in Council Bluffs, Iowa, on Dec. 15, 2023.
(AP Photo/Josh Funk, File)
 Union Pacific plans to resubmit its
application to acquire Norfolk Southern next week. The U.S. Surface
Transportation Board rejected the railroad's first request to
approve the $85 billion merger because the regulators wanted more
information. The STB hasn't yet decided whether the deal that would
cut the number of major freight railroads down to five will enhance
competition.
The deal has divided labor and the shippers who rely on both
railroads. UP is already one of the biggest railroads and it serves
the western United States. The nation's largest rail union and a
number of the smaller ones supported the merger after Union Pacific
promised that their workers would have jobs for life, but two of the
other largest unions that represent engineers and track maintenance
workers oppose it.
The railroads' customers are also split with trade groups
representing chemical makers and agricultural businesses expressing
concerns, but hundreds of other businesses lining up behind it.
President Donald Trump has also said the deal sounds good to him.
Vena has argued that creating a railroad that stretches from coast
to coast would be good for the economy because without the need for
a hand-off between railroads in the middle of the country rail
shipments would move faster, meaning it could better compete against
trucking.
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