Union Pacific (UNP) Q2 FY26 earnings call

Earnings call· Jun 2026 (Q2 FY26)· Industrials· Jul 23, 2026

Source: earnings call transcript

Union Pacific reported record Q2 FY26 financial results, driven by strong execution, 2% volume growth, and effective cost management despite fuel price volatility and wage inflation. The company raised its full-year EPS growth outlook, emphasizing its capacity to handle increased demand and its commitment to the proposed merger with Norfolk Southern, which is seen as a compelling growth opportunity for the industry. A significant merger settlement agreement was reached with Canadian National, addressing competitive concerns and enhancing network access for both parties.

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UNP operating KPIs by quarter

UNP operating KPIs stated on its earnings calls, by fiscal quarter
KPI	Jun 2025 Q2 FY25	Sep 2025 Q3 FY25	Dec 2025 Q4 FY25	Mar 2026 Q1 FY26	This call Jun 2026 Q2 FY26	Sep 2026 Q3 FY26	Change vs prior quarter
Fuel price per gallon	$2.42 Fuel expense declined 8% on an 11% decrease in fuel prices from $2.73 to $2.42 per gallon. Source: earnings call transcript	$2.56 Fuel expense grew 1%, driven by a 3% increase in gross ton-miles, partially offset by a 2% decrease in fuel prices from $2.60 to $2.56 per gallon and a 1% improvement in the consumption rate. Source: earnings call transcript	$2.49 Fuel expense grew 2%, driven by a 3% increase in fuel prices from $2.41 to $2.49 per gallon, partially offset by improved fuel consumption. Source: earnings call transcript	$2.69 Fuel expense grew 7% on a 7% increase in average fuel price from $2.51 to $2.69 per gallon. Source: earnings call transcript	$3.86 Year-over-year, our price per gallon grew from $2.42 to $3.86 and added 120 basis points to our operating ratio. Source: earnings call transcript	$4.21 Year-over-year, our price per gallon increased from $2.56 to $4.21 and added 140 basis points to our operating ratio. Source: earnings call transcript	+9.1%
Freight car velocity	221 miles per day Freight car velocity, the best measure of fluidity on the railroad, improved 10% to 221 miles per day. Source: earnings call transcript	226 miles per day Freight car velocity, the best measure of fluidity on the railroad improved 8% to 226 miles per day, a third quarter record. Source: earnings call transcript	239 miles per day Freight car velocity of 239 miles per day beat last year's record fourth quarter by 9% and set a best-ever quarterly record. Source: earnings call transcript	235 miles per day Freight car velocity increased 9% to 235 miles per day. Source: earnings call transcript	231 miles per day We provided exceptional service as freight car velocity increased 5% to 231 miles per day and set a second quarter record. Source: earnings call transcript	228 miles per day Freight car velocity increased 1% to 228 miles per day, driven by a 2% improvement in terminal dwell. Source: earnings call transcript	-1.3%
Intermodal service performance	99% And in the second quarter, both intermodal and manifest service performance improved year-over-year to 99% and 97%, respectively. Source: earnings call transcript	98% On the service front, both intermodal and manifest service performance improved year-over-year to 98% and 100%, respectively. Source: earnings call transcript	—	98% For service, both intermodal and manifest SPI finished at 98%, a 4 and 5-point improvement, respectively. Source: earnings call transcript	95% Both the intermodal and manifest service performance indices finished at 95%, demonstrating our ability to execute on the fundamentals and effectively utilize our buffer of resources. Source: earnings call transcript	92% Intermodal service performance index finished at 92% as intermodal volume grew 11%. Source: earnings call transcript	-3 pt
Manifest service performance	97% And in the second quarter, both intermodal and manifest service performance improved year-over-year to 99% and 97%, respectively. Source: earnings call transcript	100% On the service front, both intermodal and manifest service performance improved year-over-year to 98% and 100%, respectively. Source: earnings call transcript	—	98% For service, both intermodal and manifest SPI finished at 98%, a 4 and 5-point improvement, respectively. Source: earnings call transcript	95% Both the intermodal and manifest service performance indices finished at 95%, demonstrating our ability to execute on the fundamentals and effectively utilize our buffer of resources. Source: earnings call transcript	93% Manifest service performance index finished at 93% against best-ever industrial carloads. Source: earnings call transcript	-2 pt
Average train length	—	9,800 feet+ Train length in the quarter grew 2% versus last year to just over 9,800 feet, an all-time quarterly record, a remarkable accomplishment when you consider the mix headwinds associated with softer international intermodal shipments which were down 17% year-over-year. Source: earnings call transcript	—	—	<9,900 feet You don't grow train length to almost 9,900 feet by chance. Source: earnings call transcript	<10K feet And finally, we continue to safely increase train length, which improved 2% to nearly 10,000 feet. Source: earnings call transcript	—
Terminal dwell	—	—	19.8 hours This result was driven by record quarterly terminal dwell of 19.8 hours, increased train speed and continued process and technology improvements to remove daily car touches. Source: earnings call transcript	19.7 hours This performance was driven by best-ever terminal dwell of 19.7 hours, 11% better than last year and our second quarter below 20 hours. Source: earnings call transcript	19.7 hours Train speed increased 3% and terminal dwell improved 7% as we tied our first quarter record of 19.7 hours, our third straight quarter below 20 hours. Source: earnings call transcript	—	0%

Operating figures the company stated on at least two of the calls shown, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

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