UNP · 8-K · 20261022PR000319

Operating Margin Drivers

UNION PACIFIC CORP · 2026-10-22 · Importance 47 · Surprise 22 · No source text

Third-quarter 2026 operating income increased 15% year over year to $2.943 billion, while the reported operating ratio improved 10 basis points to 59.1%. Adjusted operating income was $2.965 billion and adjusted operating ratio was 58.8%, excluding $22 million of acquisition-related expense. Higher fuel prices adversely affected the operating ratio by 140 basis points, although service productivity improvements included 2% lower terminal dwell, 5% higher workforce productivity, and a 2% better fuel consumption rate.

Key facts

• Operating income for third quarter 2026 was $2,943 million, a 15% increase versus $2,549 million in third quarter 2025. source
• Union Pacific reported year-to-date operating income through September 30, 2026 of $8,164 million, a 10% increase versus $7,445 million in the comparable period 2025. source
• Reported operating ratio improved 10 basis points to 59.1%, while adjusted operating ratio increased 30 basis points to 58.8%; higher fuel price unfavorably impacted operating ratio by 140 basis points. source
• Operating ratio (OR) for third quarter 2026 was 59.1%. source
• Adjusted operating ratio for third quarter 2026 was 58.8%. source

Impact estimates