Union Pacific Q4 revenue slightly misses expectations on lower volumes

Overview

• Railroad operator's Q4 revenue slightly missed analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company reported improvements in safety and operating metrics

Outlook

• Union Pacific expects mid-single-digit EPS growth in 2026

• Company plans $3.3 bln capital investment for 2026

• Union Pacific aims for consistent annual dividend increases

Result Drivers

• REVENUE DECLINE - Operating revenue declined 1% due to lower volume, partially offset by core pricing gains and fuel surcharge revenue

• OPERATIONAL IMPROVEMENTS - Record freight car velocity and terminal dwell improvements contributed to operational efficiency

• LAND SALES IMPACT - Industrial park land sales of $234 million increased diluted EPS by $0.30

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 16 "strong buy" or "buy", 11 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the ground freight & logistics peer group is "buy"

• Wall Street's median 12-month price target for Union Pacific Corp is $260.50, about 12.8% above its January 26 closing price of $230.89

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBwBJ8zDa

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