On July 23, both Union Pacific Corporation (NYSE:UNP) and Norfolk Southern Corporation (NYSE:NSC) delivered their Q2 results, giving investors better insight into which railroad stock is the better play.
While both companies reported strong results, NSC’s investment case is now tied to the possible acquisition
Investors must weigh UNP’s standalone growth potential against NSC’s risks and upside arising from the merger. Union Pacific Earnings Union Pacific Corporation (NYSE:UNP) delivered an operating revenue of $6.9 billion and an adjusted EPS of $3.41, marking a surprise of 3% and 5%, respectively. Meanwhile, the company reported 6% EPS growth, with operating revenue up 12% YoY.
Management sees full-year reported EPS growth in the high single-digit range, raising its 2026 outlook. The strong results were mainly driven by freight revenue, which grew 12%, due to volume growth, fuel surcharge revenue, solid core pricing, and operational efficiency. The company reports being 10 basis points better on the operating ratio, standing at 59.2%. ankush-minda-7KKQG0eB_TI-unsplash A key highlight of the results was the company’s intermodal strength, as it delivered its fourth consecutive record quarter in volume and revenue.