Norfolk Southern reports first quarter 2026 results

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.

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

Argus Apr 24 session

-0.54% close to close Open Argus

Details

News Market Reaction – NSC

On Apr 24, the day this news came out, NSC closed 0.54% below the previous close.

Data tracked by StockTitan Argus for the Apr 24 session.

Market Context

This announcement highlighted Q1 2026 revenue of $3.0 billion, but with income from railway operatio...

Analysis

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 Figures

Q1 2026 revenue: $3.0 billion Q1 2026 railway income: $877 million Q1 2026 operating ratio: 70.7% +5 more

Q1 2026 revenue

$3.0 billion

First quarter 2026 railway operating revenues, flat vs Q1 2025

Q1 2026 railway income

$877 million

Income from railway operations, down 23% vs Q1 2025

Q1 2026 operating ratio

70.7%

Reported operating ratio vs 61.7% in Q1 2025

Q1 2026 diluted EPS

$2.43

Diluted EPS, down $0.88 or 27% vs Q1 2025

Adj. railway income

$939 million

Adjusted for merger and Eastern Ohio effects, down 2% vs adjusted Q1 2025

Adj. operating ratio

68.7%

Adjusted operating ratio, 80 bps higher than Q1 2025

Adj. diluted EPS

$2.65

Adjusted EPS, down $0.04 or 1% vs adjusted Q1 2025

Volume change

1% decline

Year-over-year volume decline vs Q1 2025

Previous Earnings Reports

5 past events · Latest: Jan 29

Same Type 5 events

1. Jan 29

   Q4 & FY25 earnings

   24h Move

   +2.0%

   Q4 and full-year 2025 results with improved operating ratio and EPS growth.

2. Oct 23

   Q3 2025 earnings

   24h Move

   -1.2%

   Q3 2025 results with higher EPS and raised productivity target.

3. Jul 29

   Q2 2025 earnings

   24h Move

   -3.0%

   Strong Q2 2025 metrics plus announcement of Union Pacific merger agreement.

4. Apr 23

   Q1 2025 earnings

   24h Move

   +0.9%

   Q1 2025 earnings with adjusted operating ratio improvement and EPS growth.

5. Jan 29

   Q4 & FY24 earnings

   24h Move

   +1.8%

   Q4 and full-year 2024 results with volume growth and adjusted EPS detail.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

operating ratio, diluted earnings per share, basis points

3 terms

operating ratio financial

"operating ratio was 70.7%, and diluted earnings per share were $2.43."

A company's operating ratio is a simple percentage that shows how much of its revenue is eaten up by the costs of running the business — calculated by dividing operating expenses by operating revenue. For investors it signals efficiency and profit potential: a lower operating ratio means the company keeps more of each dollar it earns (like a household with lower bills keeping more of its paycheck), while a higher ratio suggests tighter margins and less room to absorb shocks.

diluted earnings per share financial

"operating ratio was 70.7%, and diluted earnings per share were $2.43."

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

basis points financial

"the operating ratio for first quarter 2026 was 68.7%, 80 basis points higher"

Basis points are a way to measure small changes in interest rates or percentages, where one basis point equals 0.01%. For example, if a loan's interest rate increases by 50 basis points, it's gone up by 0.50%. They help people understand tiny differences in rates that can add up over time, making financial comparisons clearer.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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Results reflect disciplined execution on safety, service, and cost control through a dynamic first quarter

ATLANTA, April 24, 2026 /PRNewswire/ -- Norfolk Southern Corporation (NYSE: NSC) announced Friday its first quarter 2026 financial results. In the quarter, revenue was $3.0 billion, income from railway operations was $877 million, operating ratio was 70.7%, and diluted earnings per share were $2.43.

Adjusting the results to exclude merger-related expenses and the effects of the Eastern Ohio incident, first quarter income from railway operations was $939 million, the operating ratio was 68.7%, and diluted earnings per share were $2.65.

"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, up $5 million, or flat compared to the first quarter 2025, on a volume decline of 1% year-over-year.

• Income from railway operations was $877 million, a decrease of $269 million, or 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, down $22 million, or 2%, compared to adjusted first quarter 2025.

• Operating ratio in the quarter was 70.7% compared to 61.7% 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 was 68.7%, 80 basis points higher than first quarter 2025.

• Diluted earnings per share were $2.43, down $0.88, or 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, down $0.04, or 1%, compared to first quarter 2025.

About Norfolk Southern
Since 1827, Norfolk Southern Corporation (NYSE: NSC) and its predecessor companies have safely moved the goods and materials that drive the U.S. economy. Today, it operates a 22-state freight transportation network. Committed to furthering sustainability, Norfolk Southern helps its customers avoid approximately 15 million tons of yearly carbon emissions by shipping via rail. Its dedicated team members deliver approximately 7 million carloads annually, from agriculture to consumer goods. Norfolk Southern also has the most extensive intermodal network in the eastern U.S. It serves a majority of the country's population and manufacturing base, with connections to every major container port on the Atlantic coast as well as major ports across the Gulf Coast and Great Lakes. Learn more by visiting www.NorfolkSouthern.com.

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 Eastern Ohio incident; (v) new or additional governmental regulation and/or operational changes resulting from or related to the Eastern Ohio incident; (vi) a significant cybersecurity incident or other disruption to our technology infrastructure; and (vii) those pertaining to the Merger. These and other important factors, including those discussed under "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, filed with the SEC on February 9, 2026, may cause actual results, performance, or achievements to differ materially from those expressed or implied by these forward-looking statements. The forward-looking statements herein are made only as of the date they were first issued, and unless otherwise required by applicable securities laws, the Company disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events, or otherwise.

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 U.S. generally accepted accounting principles (GAAP).  

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

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Norfolk Southern (NSC) Q1 2026 revenue and EPS results?

Reported Q1 2026 revenue was $3.0 billion and diluted EPS was $2.43. According to the company, adjusted diluted EPS excluding merger-related expenses and the Eastern Ohio incident was $2.65.

How did Norfolk Southern (NSC) operating ratio change in Q1 2026?

The reported operating ratio for Q1 2026 was 70.7%. According to the company, adjusted operating ratio excluding merger-related expenses and the Eastern Ohio incident was 68.7%, about 80 basis points higher than adjusted Q1 2025.

What drove the year-over-year decline in Norfolk Southern (NSC) Q1 2026 operating income?

Reported income from railway operations declined by $269 million (23%) year-over-year. According to the company, merger-related expenses and the Eastern Ohio incident materially affected reported results, with adjusted operating income down 2%.

Did Norfolk Southern (NSC) Q1 2026 volumes change versus Q1 2025?

Railway volumes declined about 1% year-over-year in Q1 2026. According to the company, revenue remained essentially flat despite the volume decline, rising only $5 million versus Q1 2025.

What is the impact of merger-related expenses and the Eastern Ohio incident on NSC Q1 2026 results?

Excluding merger-related expenses and the Eastern Ohio incident, Q1 2026 income from railway operations rose to $939 million and adjusted diluted EPS was $2.65. According to the company, those items materially affected reported metrics.