Overview

• Union Pacific Q3 2025 revenue increased 3%, beats analyst expectations

• Adjusted EPS for Q3 2025 beat analyst expectations

• Company focused on merger with Norfolk Southern to create transcontinental railroad

Outlook

• Union Pacific expects EPS growth consistent with attaining the 3-year CAGR target of high-single to low-double digit

• Company plans $3.4 bln capital allocation for 2025

• Union Pacific pauses share repurchases due to Norfolk Southern merger

Result Drivers

• CORE PRICING GAINS - Operating revenue increased 3% driven by solid core pricing gains, partially offset by lower fuel surcharge

• OPERATIONAL EFFICIENCY - Improved freight car velocity and locomotive productivity contributed to operational efficiency

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 18 "strong buy" or "buy", 10 "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 $263.00, about 13.9% above its October 21 closing price of $226.54

• The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 19 three months ago

Press Release: ID:nBw7ylhsMa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)