Norfolk Southern $NSC reported second-quarter revenue of $3.5 billion on Thursday, an all-time quarterly record for the railroad, as freight volumes climbed 4% from a year earlier.
The railroad's revenue rose 11% year-over-year to $3.5 billion, topping Wall Street expectations for the second quarter
Norfolk Southern $NSC reported second-quarter revenue of $3.5 billion on Thursday, an all-time quarterly record for the railroad, as freight volumes climbed 4% from a year earlier.
Revenue rose 11% compared with the second quarter of 2025, the company said. Higher fuel surcharges accounted for six percentage points of that growth. The results beat analyst expectations of $3.37 billion, according to the Wall Street Journal.
Earnings came in at $3.26 per diluted share. When one-time items are excluded — including costs from the Union Pacific $UNP tie-up and the Ohio derailment — adjusted earnings reached $3.52 per share, clearing the $3.31 per share analyst consensus, according to the Journal.
Income from railway operations fell 4% to $1.1 billion. On an adjusted basis, operating income rose 5% to $1.2 billion. The reported operating ratio — a measure of costs relative to revenue, where lower is better — was 67.6%, compared with 62.2% in the same period last year. The adjusted operating ratio was 65.5%.
President and Chief Executive Officer Mark George said results exceeded what the company had projected at the outset of the quarter. "Our team adapted to a dynamic operating environment with focus and an unwavering commitment to safety," he said in a statement. George added that the company is focused on running a reliable railroad and capitalizing on what he described as encouraging demand trends in the second half of the year.
Norfolk Southern stock rose 1.3% in premarket trading.
The earnings report comes as Norfolk Southern's proposed merger with Union Pacific faces regulatory uncertainty. The Surface Transportation Board paused its review of their $85 billion deal after the federal regulator determined that the railroads' revised application did not provide enough information for a complete evaluation. The STB ordered the two companies to submit supplemental materials by July 27, putting the environmental review on hold as well.
The merger, which would create the first coast-to-coast freight railroad in the U.S. spanning more than 50,000 miles across 43 states, has encountered pushback from rival carriers, shippers, and labor groups, who contend that consolidation would harm competitive pricing across the freight market. Separately, Union Pacific and Canadian National $CNI Railway struck a deal on Wednesday under which CN will gain expanded entry to certain Midwest corridors and, in turn, withdraw its objections to the Union Pacific–Norfolk Southern merger.
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