Union Pacific’s third quarter 2026 net income rose to $2.1 billion from $1.8 billion a year earlier, with diluted earnings per share up to $3.49 from $3.01. Operating income increased 15% to $2.9 billion, while the operating ratio improved to 59.1% from 59.2%.
Total operating revenue climbed 15% to $7.197 billion in the quarter from $6.244 billion. Freight revenue accounted for $6.813 billion, up 15%; other subsidiary revenue rose 17% to $201 million; accessorial revenue increased 27% to $157 million; and other revenue rose to $26 million from $21 million.
For the first nine months of 2026, total revenue reached $20.278 billion, up 10% from $18.425 billion. Freight revenue increased to $19.224 billion from $17.461 billion, while accessorial revenue rose 18% to $412 million.
The biggest revenue driver in the quarter was fuel surcharge income, which jumped to $1.2 billion from $602 million a year earlier. Management said higher fuel surcharge revenue, 6% carload growth, and core pricing gains more than offset an unfavorable mix shift toward lower-ARC intermodal traffic.
Quarterly freight revenue by commodity showed gains across most categories: Grain and grain products: $1.085 billion, up 11% Fertilizer: $234 million, up 3% Food and refrigerated: $272 million, up 5% Coal and renewables: $525 million, up 12% Industrial chemicals and plastics: $701 million, up 8% Metals and minerals: $666 million, up 17% Forest products: $371 million, up 13% Energy and specialized markets: $771 million, up 18% Automotive: $671 million, up 11% Intermodal: $1.517 billion, up 27%
By volume, total revenue carloads rose 6% in the quarter to 2.293 million from 2.163 million. Intermodal carloads increased 11% to 956,000, grain and grain products rose 5% to 225,000, metals and minerals climbed 8% to 209,000, and energy and specialized markets increased 7% to 158,000. Coal and renewables carloads fell 3% to 209,000.
Average revenue per car increased 8% to $2,971 from $2,740. Intermodal ARC rose to $1,586 from $1,393, automotive to $3,324 from $3,027, and coal and renewables to $2,516 from $2,181.
Mexico-related freight revenue increased 9% to $820 million in the quarter, driven by fuel surcharge revenue and 4% volume growth. Intermodal, finished vehicles, and construction-related shipments were the main contributors.
Operating expenses increased 15% to $4.254 billion from $3.695 billion. Fuel expense was the largest swing, rising 69% to $1.040 billion from $616 million. Compensation and benefits increased 4% to $1.264 billion, purchased services and materials rose 9% to $746 million, and depreciation increased 4% to $643 million.
For the nine-month period, operating expenses rose 10% to $12.114 billion from $10.980 billion. Fuel expense increased 46% to $2.621 billion, compensation and benefits rose 2% to $3.731 billion, purchased services and materials increased 9% to $2.128 billion, and depreciation climbed 4% to $1.914 billion.
On a year-to-date basis, freight revenue rose 10% to $19.224 billion. Grain and grain products revenue increased 12% to $3.248 billion; coal and renewables rose 8% to $1.459 billion; industrial chemicals and plastics increased 7% to $2.041 billion; metals and minerals rose 12% to $1.842 billion; energy and specialized markets increased 11% to $2.158 billion; automotive rose 6% to $1.934 billion; and intermodal climbed 15% to $4.019 billion.
Nine-month revenue carloads increased 3% to 6.539 million from 6.374 million. Intermodal carloads rose to 2.601 million from 2.551 million, grain and grain products to 710,000 from 645,000, and metals and minerals to 588,000 from 558,000. Average revenue per car for the period increased 7% to $2,940 from $2,740. Today the company's shares have moved 0.09% to a price of $287.87. For the full picture, make sure to review UNION PACIFIC CORP's 10-Q report.
