UNP · 10-Q · 2026Q3 · Full report

Operating Expense Trends

UNION PACIFIC CORP · 2026-10-22 · Importance 47 · Surprise 22 · In source text

Operating expenses increased 15% in the third quarter to $4.254 billion and 10% in the first nine months to $12.114 billion. Quarterly increases reflected higher fuel prices, volume-related costs, inflation, and depreciation, partly offset by productivity and lower acquisition-related expenses. Fuel expense rose as locomotive diesel averaged $4.21 per gallon in the quarter and $3.59 year to date, versus $2.56 and $2.49 in the comparable 2025 periods; fuel consumption improved 2% in both periods. Compensation and benefits increased 4% in the quarter, with wage inflation, incentives, and training costs partly offset by lower employee levels; the year-to-date comparison also benefited from a $55 million 2025 crew staffing charge.

Key facts

• UNION PACIFIC CORP operating expenses increased 15% in third-quarter 2026 and 10% year to date compared with 2025; higher fuel prices, inflation, volume-related costs, and depreciation contributed to increases. source
• UNION PACIFIC CORP compensation and benefits expense increased 4% in third-quarter 2026 and 2% year to date compared with 2025, as wage inflation, higher incentive compensation, and training costs were partially offset by lower employee levels. source
• UNION PACIFIC CORP purchased services and materials expense increased 9% in third-quarter and year-to-date 2026 compared with 2025, driven by higher subsidiary and intermodal volume-related costs and inflation. source
• UNION PACIFIC CORP's year-to-date compensation comparison was positively affected by a $55 million 2025 crew staffing agreement ratification charge. source
• UNION PACIFIC CORP depreciation expense increased 4% in both third-quarter and year-to-date 2026 compared with 2025, driven by a higher depreciable asset base. source
• UNION PACIFIC CORP equipment and other rents expense decreased 3% in third-quarter 2026 and 6% year to date compared with 2025, driven by lower operating equipment lease expense and lower car hire expense. source

Impact estimates