Union Pacific plans to direct $3.5 billion to capital projects in 2026, an increase of $200 million from July, as it holds its reported earnings-per-share growth outlook at high-single digits.
The July figure was $3.3 billion. Planned work includes new freight cars and network expansion, as well as efforts to improve safety, resilience and efficiency. The company also plans to reinforce and replace infrastructure and modernize locomotives.
Operating revenue for the quarter ended Sept. 30 was $7.197 billion, versus $6.244 billion a year earlier. Net income rose 16% to $2.076 billion, while diluted EPS reached $3.49, up from $3.01; adjusted diluted EPS was $3.53, up 15% from $3.08. Revenue carloads gained 6%, and EconoTimes previously covered the third-quarter net-income increase.
The guidance refers to reported earnings per share and describes growth as high-single digit, with no defined percentage band. Union Pacific recorded $11.98 in diluted EPS for 2025; fourth-quarter industrial park land sales accounted for $0.30 per share. The company has described its 2026 outlook as aligned with a three-year earnings-growth goal extending through 2027, ranging from high single digits to low double digits.
Union Pacific said higher fuel prices added 140 basis points to its reported operating ratio. The reported figure was 59.1%, down 0.10 percentage point year over year; its adjusted ratio was 58.8%, up 0.30 percentage point. Chief Executive Jim Vena said the railroad was “efficiently handling six percent volume growth”; Union Pacific expects the core-business ratio to improve in 2026 but says fuel costs continue to weigh on the reported measure.
