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Union Pacific Corporation
S&P 500
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$170.0B
Market Cap
19.3
P/E
2.40
PEG
15.8%
ROCE
40.4%
ROE
1.78
D/E
40.7%
OPM
-7.8%
% from 52W High
74
α RS
🔍 UNP is showing a high-conviction setup because it matches 14 of 39 tracked screener presets, Sector RRG has Industrials in the Improving quadrant with the trail still strengthening, and RS Rating is 74. Net: Broad signal stack, not a recommendation. ? Conviction RRG RS Rating
Sources
Conviction 14/39 · Industrials in Improving quadrant · RS Rating 74
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🌏 Global Investor Returns
Currency-adjusted total returns for UNP including FX impact
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📈 Price History
Ratio Health
Excellent
Good
Average
Poor
By Category
📊 Sector Averages
About

Union Pacific Corporation, through its subsidiary, Union Pacific Railroad Company, operates in the railroad business in the United States. It offers transportation services for grain and grain products, fertilizers, food and refrigerated products, and coal and renewables to grain processors, animal feeders, and ethanol and renewable biofuel producers; and construction products, industrial chemicals, plastics, forest products, specialized products, metals and ores, petroleum, liquid petroleum gases, soda ash, and sand, as well as finished automobiles, automotive parts, and merchandise in intermodal containers. The company was founded in 1862 and is headquartered in Omaha, Nebraska.

Key Ratios Snapshot
📈 Growth Pattern
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⭐ Superinvestors Holding UNP
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Manager Shares Value % of Fund Period
Daniel Loeb Third Point LLC 100.0K $24.3B 1.16% Mar 2026
Seth Klarman Baupost Group 1.54M $373.9M 7.31% Mar 2026
Steve Cohen Point72 Asset Management 276.1K $67.0M 0.09% Mar 2026
Jim Simons Renaissance Technologies LLC 21.1K $5.1M 0.01% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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Good quarter Investor Presentation One-Pager? Q2 2026
Revenue
$6.9B
+12% YoY
Adjusted EPS
$3.41
+13% YoY
Operating Ratio (adjusted)
59.2%
110 bps worse YoY
Net Income
$2.0B
+6% YoY
What Went Right
  • Record Q2: operating revenue $6.9B (+12%), net income $2.0B, adjusted EPS $3.41 (+13%)
  • Freight revenue ex-fuel +4% to $5.5B, with pricing dollars again exceeding inflation; domestic intermodal posted a 4th straight record quarter with double-digit volume gains
  • Operations delivered 8th straight record workforce productivity, freight car velocity +5% to 231 m/day, and record train length and fuel consumption
What to Watch
  • Fuel is a major swing factor: average fuel price +60% to $3.86/gal, recent purchases over $4/gal, adding 120 bps to OR
  • Coal remains challenged on weak natural gas prices, mild weather and customer outages; 2H coal expected to stay difficult
  • Compensation per employee now expected up ~6% in 2026 due to wage/benefit inflation, partly offset by productivity gains
Management Guidance
  • FY2026 reported EPS growth raised to high-single-digit range
  • Continued operating ratio improvement and industry-leading OR/ROIC expected
  • 2026 capital plan affirmed at $3.3B; strong cash generation and consistent dividend increases ongoing
Investor Lens
The thesis strengthens after this quarter: record financials, eight straight productivity-record quarters and raised EPS guidance show operating leverage, while the STB milestone and CN agreement de-risk the merger narrative. Fuel remains the biggest near-term uncertainty, but management is confident volume growth and efficiency can offset headwinds. Watch mix pressure from surging domestic intermodal and wage inflation, but pricing power and 4% ex-fuel freight revenue growth underpin the story.
From investor presentation · AI-generated analysis · Not investment advice
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📈 STRONG Record Q2: EPS $3.41, OR 59.2%, FY outlook raised
Revenue
Operating revenue rose 12% to $6.9B; freight revenue also +12% to $6.5B, with freight revenue ex-fuel up 4% to $5.5B. Segment revenue: Premium +21%, Industrial +8%, Bulk +7%.
Profitability
Net income was $2.0B, up 6% YoY; reported EPS was $3.36 and adjusted EPS was $3.41, up 13% YoY. Results were record-level despite fuel and one-time merger costs.
Margins
Reported OR was 59.7%; adjusted OR was 59.2%, ~110 bps worse YoY, driven by a 120 bps fuel-price headwind. Excluding that noise, Jim said core OR was about 58%, underscoring solid efficiency.
Balance Sheet
Cash from operations reached $5.5B, up 21%; free cash flow was $1.8B after capex and dividends. Union Pacific also repaid $1.5B of long-term debt in 1H, leaving adjusted debt/EBITDA at 2.5x.
Key Risks
Fuel-price volatility is the key risk with recent purchases above $4/gal and a 120 bps OR impact in Q2. Coal demand is weak on natural-gas prices, weather and downtime. Wage/benefit inflation is pushing 2026 compensation per employee up ~6%.
Outlook
Management raised FY2026 reported EPS growth to high-single-digit and expects further OR improvement. Domestic intermodal momentum should continue and international intermodal is expected positive in 2H, though coal remains pressured.
Generated by AI · Q2 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-23
Record Q2 2026 results featured 12% revenue growth, $2B net income, and improved operating ratio, driven by strong volume, pricing, and operational efficiency. Raised full-year EPS outlook to high single digits, advanced merger milestones, and maintained robust cash flow and capital discipline.
Q1 2026 Q1 2026 2026-04-23
Record Q1 results with 5% net income growth and improved operating ratio, driven by strong execution, productivity gains, and robust bulk and industrial segments. 2026 outlook affirmed despite fuel headwinds; merger process progressing with regulatory confidence.
Q4 2025 Q4 2025 2026-01-27
Reported record net income and EPS for 2025, with strong productivity and cost control offsetting volume declines. 2026 guidance targets mid-single-digit EPS growth despite inflation and macro headwinds, while merger progress with Norfolk Southern continues on track.
Q3 2025 Q3 2025 2025-10-23
Q3 2025 delivered 12% adjusted EPS growth and record operational metrics, with strong pricing and productivity offsetting volume softness. Merger progress with Norfolk Southern is robust, supported by customers and unions, while Q4 faces headwinds from lower volumes and merger costs.
Q2 2025 Q2 2025 2025-07-24
Record Q2 results driven by volume growth, pricing, and productivity, with adjusted EPS up 12% year-over-year and an industry-leading 58.1% operating ratio. Advanced merger talks with Norfolk Southern were announced, and guidance for high single to low double-digit EPS growth was reaffirmed.
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This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Information Sources:
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