UBS reiterates Union Pacific stock rating on strong volume growth

Union Pacific Corp (UNP) reported Q3 2026 earnings with record net income and 15% EPS growth. Challenges include higher fuel costs, lower-yielding intermodal traffic, and opposition to its Norfolk Southern merger. Capital expenditures rose to $3.5B. CEO Jim Vena remains confident in merger approval, citing operational benefits. The company expects fuel prices to further impact Q4 performance.

StoneX reiterated a Buy rating and $335 price target for Union Pacific (UNP) after its Q3 earnings beat estimates. UNP reported adjusted EPS of $3.53, driven by higher revenues and operational improvements. The company raised its 2026 capital expenditure target and maintained other growth targets. Analysts from UBS, TD Cowen, and others also reiterated positive ratings and raised price targets, citing strong volume growth and efficiency.

TD Cowen raised Union Pacific's (UNP) price target to $328, citing strong Q3 results and volume growth. UNP reported $7.2B revenue and $3.53 EPS, exceeding estimates. The company expects high-single-digit EPS growth by 2026. Analysts maintain positive ratings, with targets up to $350, citing merger progress and volume gains.

Union Pacific Corp (UNP) reported Q3 2026 earnings with revenue of $7.2B (+15% YoY), net income of $2.1B, and adjusted EPS of $3.53 (+15%). Freight revenue grew 15%, while operating expenses rose 15% due to higher fuel costs. The company affirmed high single-digit EPS growth for 2026 and expects Q4 fuel prices to average $4.85 per gallon. The merger with Norfolk Southern is on track to close in 2H 2027, despite some opposition.

TD Cowen kept a Buy rating on Union Pacific (UNP) with a $328 price target, suggesting a 10% upside from the Oct 22 close. The company reported a 6% YoY increase in carloads and a 13% rise in domestic intermodal volumes, with expectations of continued growth. UNP maintains a high-single digit EPS growth outlook for 2026, citing operational efficiency and pricing power.

Union Pacific (UNP) reported Q3 earnings of $3.53 per share, beating estimates, with revenue up 15.3% to $7.20 billion. The company raised its dividend to $1.42 per share, covered by strong cash flow. Management expects continued dividend growth and pricing improvements. The pending Norfolk Southern merger may impact buybacks and debt levels.