Norfolk Southern reports first quarter 2026 results
Rhea-AI Summary
Norfolk Southern (NYSE: NSC) reported Q1 2026 results on April 24, 2026: revenue $3.0B, income from railway operations $877M, operating ratio 70.7%, and diluted EPS $2.43. Adjusted for merger-related expenses and the Eastern Ohio incident, income from railway operations was $939M, adjusted operating ratio was 68.7%, and adjusted diluted EPS was $2.65. Railway volumes declined 1% YoY.
Positive
- Revenue of $3.0 billion was essentially flat year-over-year
- Adjusted income from railway operations of $939 million was down only 2% year-over-year
- Adjusted diluted EPS of $2.65 was down 1% year-over-year, showing limited adjusted EPS erosion
Negative
- Reported income from railway operations fell by $269 million (23%) year-over-year
- Reported diluted EPS declined by $0.88 (27%) year-over-year to $2.43
- Operating ratio widened to 70.7% from 61.7% (reported), a 1,000 bp deterioration
Key Figures
Market Reality Check
Peers on Argus
NSC gained 7.75%, while key peers like CSX, CNI, CP, UNP, and WAB showed more moderate moves (from 1.47% to 3.52%), and the momentum scanner only flagged CNI moving down. This points to a stock-specific reaction rather than a coordinated rail sector move.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Jan 29 | Q4 & FY25 earnings | Positive | +2.0% | Q4 and full-year 2025 results with improved operating ratio and EPS growth. |
| Oct 23 | Q3 2025 earnings | Positive | -1.2% | Q3 2025 results with higher EPS and raised productivity target. |
| Jul 29 | Q2 2025 earnings | Positive | -3.0% | Strong Q2 2025 metrics plus announcement of Union Pacific merger agreement. |
| Apr 23 | Q1 2025 earnings | Positive | +0.9% | Q1 2025 earnings with adjusted operating ratio improvement and EPS growth. |
| Jan 29 | Q4 & FY24 earnings | Positive | +1.8% | Q4 and full-year 2024 results with volume growth and adjusted EPS detail. |
Earnings releases over the past five quarters typically led to modest single-digit moves, with mostly positive operational narratives but a mix of price alignments and divergences.
Over the last five earnings-related announcements from Jan 29 2024 through Jan 29 2026, Norfolk Southern consistently reported revenue near $3.0B per quarter, improving operating ratios into the mid‑60s and EPS generally in the low‑to‑mid $3 range, alongside full-year 2025 EPS of $12.75. Several reports highlighted productivity savings and progress on a pending merger with Union Pacific. Today’s Q1 2026 results show largely stable revenue but lower income and EPS versus prior-year Q1, and a higher operating ratio, contrasting with the strong positive price move.
Historical Comparison
In the past year, NSC’s earnings reports moved the stock by an average of 0.09%. Today’s 7.75% reaction to Q1 2026 results stands out as much stronger than prior earnings responses.
Earnings releases since 2024 show quarterly revenue around $3.0B, improving operating ratios into the mid‑60s, and rising EPS, culminating in full‑year 2025 EPS of $12.75 and a pending merger with Union Pacific.
Market Pulse Summary
This announcement highlighted Q1 2026 revenue of $3.0 billion, but with income from railway operations down and operating ratio rising to 70.7%, even after adjustments for merger and Eastern Ohio effects. Compared with prior quarters showing mid‑60% operating ratios and EPS mostly above $3, the figures reflected some pressure. Investors tracking this story may watch upcoming quarters for revenue growth, operating ratio improvement, EPS trends, and ongoing impacts from the pending Union Pacific merger and macro conditions.
Key Terms
operating ratio financial
basis points financial
AI-generated analysis. Not financial advice.
Results reflect disciplined execution on safety, service, and cost control through a dynamic first quarter
Adjusting the results to exclude merger-related expenses and the effects of the
"In the first quarter, our team stayed focused on what we could control, operating with discipline amid volatile volumes, severe winter weather, and a rapidly shifting macroeconomic environment including the dramatic rise in fuel prices in March," said Mark George, president and chief executive officer of Norfolk Southern. "Despite these challenges, our employees safely delivered a solid service product, managed costs effectively, and earned the continued trust of our customers. As conditions improved, we captured momentum exiting the quarter, reinforcing the strength of our operating foundation and the dedication of the entire Norfolk Southern team."
First Quarter Summary
- Railway operating revenues of
$3.0 billion $5 million 1% year-over-year.
- Income from railway operations was
$877 million $269 million 23% , compared to first quarter 2025.- Adjusting for the effects of the
Eastern Ohio incident in both years and merger-related expenses in 2026; income from railway operations was$939 million $22 million 2% , compared to adjusted first quarter 2025.
- Adjusting for the effects of the
- Operating ratio in the quarter was
70.7% compared to61.7% in first quarter 2025.- Adjusting for the effects of the
Eastern Ohio incident in both years and merger-related expenses in 2026, the operating ratio for first quarter 2026 was68.7% , 80 basis points higher than first quarter 2025.
- Adjusting for the effects of the
- Diluted earnings per share were
$2.43 $0.88 27% , compared to first quarter 2025.- Adjusting for the effects of the
Eastern Ohio incident in both years and merger-related expenses in 2026, diluted earnings per share were$2.65 $0.04 1% , compared to first quarter 2025.
- Adjusting for the effects of the
About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the
Cautionary Statement on Forward-Looking Statements
Certain statements in this press release are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, as amended. These statements relate to future events or our future financial performance and involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, or our achievements or those of our industry to be materially different from those expressed or implied by any forward-looking statements. In some cases, forward-looking statements may be identified by the use of words like "may," "will," "could," "would," "should," "expect," "anticipate," "believe," "project," or other comparable terminology. While the Company has based these forward-looking statements on those expectations, assumptions, estimates, beliefs, and projections it views as reasonable, such forward-looking statements are only predictions and involve known and unknown risks and uncertainties, many of which involve factors or circumstances that are beyond the Company's control, including but not limited to: (i) changes in domestic or international economic, political or business conditions, including those impacting the transportation industry; (ii) the Company's ability to successfully implement its operational, productivity, and strategic initiatives; (iii) a significant adverse event on our network, including but not limited to a mainline accident, discharge of hazardous material, or climate-related or other network outage; (iv) the outcome of claims, litigation, governmental proceedings, and investigations involving the Company, including those with respect to the
Non-GAAP Financial Measures
Information included within this press release contains non-GAAP financial measures, including adjusted income from railway operations, adjusted operating ratio, and adjusted diluted earnings per share. Non-GAAP financial measures should be considered in addition to, not as a substitute for, the financial measures reported in accordance with
Our first quarter 2026 non-GAAP financial results exclude merger-related expenses and both the first quarters of 2026 and 2025 exclude the overall impact on operating expenses resulting from the Eastern Ohio Incident (the Incident). The following tables adjust our first quarter 2026 and first quarter 2025 GAAP financial results to exclude the effects of those items. The income tax effects of the non-GAAP adjustments were calculated based on the applicable tax rates to which the non-GAAP adjustments related. We use these non-GAAP financial measures internally and believe this information provides useful supplemental information to investors to facilitate making period-to-period comparisons by excluding these costs. While we believe that these non-GAAP financial measures are useful in evaluating our business, this information should be considered as supplemental in nature and is not meant to be considered in isolation from, or as a substitute for, the related financial information prepared in accordance with GAAP. In addition, these non-GAAP financial measures may not be the same as similar measures presented by other companies. Information about the adjustments that are not currently available to us could have a potentially unpredictable and significant impact on future GAAP results. Further information about the Company's non-GAAP measures are available on our website at www.norfolksouthern.com on the Investors page under Events and Presentations.
($ in millions, except per share amounts) | First | ||||
Quarter 2026 | |||||
Income from railway operations | $ | 877 | |||
Merger-related expenses and effect of the Incident | 62 | ||||
Adjusted income from railway operations | $ | 939 | |||
Operating ratio | 70.7 % | ||||
Merger-related expenses and effect of the Incident | (2.0 %) | ||||
Adjusted operating ratio | 68.7 % | ||||
Diluted earnings per share | $ | 2.43 | |||
Merger-related expenses and effect of the Incident | 0.22 | ||||
Adjusted diluted earnings per share | $ | 2.65 | |||
($ in millions, except per share amounts) | First | |||
Quarter 2025 | ||||
Income from railway operations | $ | 1,146 | ||
Effect of the Incident | (185) | |||
Adjusted income from railway operations | $ | 961 | ||
Operating ratio | 61.7 % | |||
Effect of the Incident | 6.2 % | |||
Adjusted operating ratio | 67.9 % | |||
Diluted earnings per share | $ | 3.31 | ||
Effect of the Incident | (0.62) | |||
Adjusted diluted earnings per share | $ | 2.69 | ||
View original content to download multimedia:https://www.prnewswire.com/news-releases/norfolk-southern-reports-first-quarter-2026-results-302752391.html
SOURCE Norfolk Southern Corporation