UNP · 10-Q · 2026Q2 · Full report

Operating Margin Drivers

UNION PACIFIC CORP · 2026-07-23 · Importance 54 · Surprise 40 · Matches filing data

Second-quarter 2026 operating income increased 9% to $2.8 billion, but the operating ratio deteriorated 0.7 points to 59.7% from 59.0%. Six-month operating ratio performance also deteriorated 0.3 points to 60.1% as higher fuel prices, inflation, and acquisition-related expenses exceeded pricing and productivity benefits. Average locomotive diesel fuel prices rose to $3.86 per gallon in the second quarter from $2.42, a 60% increase that was the primary pressure on operating expenses and margin. Freight car velocity improved 5% and terminal dwell improved 7% in the quarter, supporting productivity and partially offsetting cost inflation.

Key facts

Second quarter 2026 earnings per diluted share: $3.36 on net income of $2.0 billion and an operating ratio of 59.7%. source
Operating income increased 9% to $2.8 billion in Q2 2026 versus Q2 2025. source

Impact estimates

metric	direction	stage	expected	basis
net_income	positive	realized	+29.1%	Second quarter 2026 earnings per diluted share: $3.36 on net income of $2.0 billion and an operating ratio of 59.7%.