AI Takeaway
Union Pacific delivered solid Q1 2026 results with revenue up 3.2% to $6.22B and net income up 4.6% to $1.70B, while maintaining a best-in-class operating margin near 39.5% and generating $2.44B in operating cash flow.
Revenue
$6.22B
++3.15% YoY
EPS (Basic)
$2.87
++5.90% YoY
Operating Income
$2.46B
++3.67% YoY
Filed · Source: SEC EDGAR 10-Q filing
Total revenue increased 3.2% year-over-year to $6.22B in Q1 2026 from $6.03B in Q1 2025, reflecting a combination of freight volume recovery and pricing discipline across Union Pacific's core business segments.
Source: Source: 10-Q Financial Data, Income Statement
Operating income rose 3.7% to $2.46B, with operating margin improving slightly to 39.5% from 39.3% in the prior year period, demonstrating continued operational efficiency and cost discipline in the railroad network.
Source: Source: 10-Q Financial Data, Income Statement
Operating cash flow surged 10.4% year-over-year to $2.44B, significantly outpacing net income growth of 4.6%, indicating high earnings quality and strong cash conversion from the core railroad operations.
Source: Source: 10-Q Financial Data, Cash Flow Statement
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Upgrade to unlockUnion Pacific carries a debt-to-equity ratio of 2.59, reflecting substantial long-term debt relative to equity. While the railroad's stable cash flows support this leverage, rising interest rates or an economic downturn could pressure debt servicing capacity and limit financial flexibility.
Source: Source: 10-Q Financial Data, Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $2.93 versus the $2.89 analyst consensus — a +1.3% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $6.22B | $6.03B | +3.15% |
Operating Income | $2.46B | $2.37B | +3.67% |
Net Income | $1.7B | $1.63B | +4.61% |
EPS (Basic) | $2.87 | $2.71 | +5.90% |
EPS (Diluted) | $2.87 | $2.70 | +6.30% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $69.64B | $68.49B | +1.68% |
Current Assets | $4.21B | $4.54B | -7.14% |
Total Liabilities | $50.23B | $52.45B | -4.25% |
Current Liabilities | $4.6B | $6.22B | -26.04% |
Stockholders' Equity | $19.42B | $16.04B | +21.07% |
Cash & Equivalents | $735M | $1.41B | -47.91% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.44B | $2.21B | +10.41% |
Investing Cash Flow | $-988M | $-938M | -5.33% |
Financing Cash Flow | $-1.98B | $-878M | -125.63% |
Dividends Paid | $821M | $804M | +2.11% |
Share Buybacks | $0 | $1.42B | -100.00% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Margin | 39.5% | 39.3% | +0.20% |
Net Margin | 27.4% | — | — |
ROE | 8.8% | — | — |
ROA | 2.4% | — | — |
Current Ratio | $0.916 | — | — |
Debt to Equity | $2.587 | — | — |
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Union Pacific reported Q1 2026 revenue of $6.22B (up 3.2%) and net income of $1.70B (up 4.6%), with diluted EPS of $2.87 versus $2.70 a year ago. Operating cash flow grew strongly by 10.4% to $2.44B, reflecting solid operational execution.
The key takeaways are: revenue and earnings grew modestly, operating margin held near a best-in-class 39.5%, and operating cash flow surged 10.4%. Notably, share buybacks were completely suspended in Q1 2026 after $1.42B was spent in Q1 2025, and cash on hand fell 47.9% to $735M.
Yes, Union Pacific reported zero share repurchases in Q1 2026, compared to $1.42B in buybacks during Q1 2025 — a 100% year-over-year decline. The company continued paying dividends of $821M during the quarter, suggesting capital was redirected toward balance sheet management.
Union Pacific's balance sheet shows total assets of $69.6B and stockholders' equity of $19.4B (up 21.1% year-over-year), while total liabilities declined 4.2% to $50.2B. However, the current ratio of 0.92 and cash position of only $735M (down 47.9%) indicate relatively tight near-term liquidity, offset by strong operating cash generation of $2.44B.
Union Pacific's operating margin was 39.5% in Q1 2026, a slight improvement from 39.3% in Q1 2025, and remains one of the highest in the North American railroad industry. This reflects the company's ongoing focus on operational efficiency and its pricing power in the freight rail market.