Norfolk Southern Q3 2026 earnings rise 7% to $3.37 a share
Nine-month results include lower railway operating income, net income and operating cash flow than in the first nine months of 2025.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Rhea-AI Filing Summary
Norfolk Southern Corporation (NSC) reported third-quarter 2026 railway operating revenue of $3.526 billion, up $423 million, or 14%, from a year earlier. Income from railway operations was $1.150 billion, up $52 million, or 5%, and diluted earnings per share were $3.37, up $0.21, or 7%. The operating ratio was 67.4%, compared with 64.6%; net income was $759 million, versus $711 million.
Excluding merger-related expenses and Eastern Ohio incident effects, non-GAAP adjusted income from railway operations was $1.220 billion, adjusted operating ratio was 65.4%, and adjusted diluted EPS was $3.62. The comparable 2025 adjusted figures also excluded restructuring and other charges. For the first nine months, revenue was $9.989 billion versus $9.206 billion, while railway operating income was $3.151 billion versus $3.419 billion and net income was $2.040 billion versus $2.229 billion. Net cash provided by operating activities was $2.720 billion versus $3.298 billion.
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- Moderate pointThird-quarter railway operating revenue rose 14% to $3.526 billion.
- Moderate pointThird-quarter diluted EPS increased 7% to $3.37.
Negative
- Moderate pointNine-month net income declined to $2.040 billion from $2.229 billion.
- Moderate pointNine-month operating cash flow declined to $2.720 billion from $3.298 billion.
Filing Explained
The unaudited report says Norfolk Southern repurchased and retired no common shares in the first nine months of 2026, versus 2.2 million in the same 2025 period; reported shares outstanding were 224,616,686 on
8-K Event Classification
Key Figures
Key Terms
Operating ratio financial
Non-GAAP financial measures financial
Earnings Snapshot
FAQ
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How much revenue did NSC report in Q3 2026?
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): |
(Exact name of Registrant as Specified in Its Charter)
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(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
Securities registered pursuant to Section 12(b) of the Act:
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Trading |
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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02 Results of Operations and Financial Condition.
Item 7.01 Regulation FD Disclosure.
On October 22, 2026, Norfolk Southern Corporation (the “Company”) issued a press release reporting third-quarter results for 2026, as well as its Quarterly Financial Data for the third quarter of 2026. A copy of the press release is attached as Exhibit 99.1 and a copy of the Quarterly Financial Data is attached as Exhibit 99.2, each of which is incorporated by reference herein.These documents are also available on the Company’s website, www.norfolksouthern.com.* This unaudited financial information and summary of certain notes to the consolidated financial statements should be read in conjunction with: (a) the consolidated financial statements and notes included in the Company's latest Annual Report on Form 10-K and in subsequent Quarterly Reports on Form 10-Q; and (b) any Current Reports on Form 8-K.
The information contained in this Current Report shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing.
Item 9.01 Financial Statements and Exhibits.
The following exhibits are furnished as part of this Current Report on Form 8-K:
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Exhibit Number |
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Description |
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99.1 |
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Press Release dated October 22, 2026 |
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99.2 |
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2026 Q3 Financial Data |
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104 |
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Cover Page Interactive Data File (embedded within the Inline XBRL document) |
* Internet addresses are provided for informational purposes only and are not intended to be hyperlinks.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
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NORFOLK SOUTHERN CORPORATION |
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By: |
/s/ Jeremy Ballard |
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Name: Jeremy Ballard |
Exhibit 99.1
FOR IMMEDIATE RELEASE
Norfolk Southern reports third quarter 2026 results
Railroad achieves record quarterly revenues and strong earnings growth
ATLANTA, October 22, 2026 – Norfolk Southern Corporation (NYSE: NSC) announced Thursday its third quarter 2026 financial results. For the quarter, revenue was $3.5 billion, income from railway operations was $1.2 billion, operating ratio was 67.4%, and diluted earnings per share were $3.37.
Adjusting the results to exclude merger-related expenses and the effects of the Eastern Ohio incident, third quarter income from railway operations was $1.2 billion, the operating ratio was 65.4%, and diluted earnings per share were $3.62.
"Norfolk Southern delivered another quarter of solid execution, with record revenues, and strong earnings growth aided by continued productivity gains across the network, reflecting continued momentum in our business and the dedication of our team," said Mark George, Norfolk Southern President and Chief Executive Officer. "Throughout the quarter, we remained focused on safely serving customers, improving operational performance, while maintaining disciplined cost control despite rising fuel costs. Demand for rail service increased during the quarter, as a tighter trucking market highlighted rail's competitive advantages and underscored the opportunity for a more efficient, capacity-enhanced freight network. We remain focused on investing in a stronger, more resilient rail network that can support growth we see on the horizon.”
Third Quarter Summary
Norfolk Southern Corporation | 1
###
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.
Media Inquiries:
Media Relations
Investor Inquiries:
Investor Relations
Norfolk Southern Corporation | 2
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 non-GAAP financial results for the third quarters of 2026 and 2025 exclude merger-related expenses and the effects from the Eastern Ohio Incident (the Incident). Our non-GAAP financial results for the third quarter of 2025 also exclude restructuring and other charges. The following tables adjust our GAAP financial results for the third quarters of 2026 and 2025 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
Norfolk Southern Corporation | 3
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.
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Third |
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($ in millions, except per share amounts) |
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Quarter 2026 |
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Income from railway operations |
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$ |
1,150 |
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Merger-related expenses and effects of the Incident |
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70 |
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Adjusted income from railway operations |
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$ |
1,220 |
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Operating ratio |
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67.4 |
% |
Merger-related expenses and effects of the Incident |
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(2.0 |
)% |
Adjusted operating ratio |
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65.4 |
% |
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Diluted earnings per share |
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$ |
3.37 |
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Merger-related expenses and effects of the Incident |
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0.25 |
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Adjusted diluted earnings per share |
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$ |
3.62 |
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Third |
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($ in millions, except per share amounts) |
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Quarter 2025 |
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Income from railway operations |
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$ |
1,098 |
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Merger-related expenses, restructuring and other charges, and effects of the Incident |
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40 |
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Adjusted income from railway operations |
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$ |
1,138 |
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Operating ratio |
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64.6 |
% |
Merger-related expenses, restructuring and other charges, and effects of the Incident |
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(1.3 |
)% |
Adjusted operating ratio |
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63.3 |
% |
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Diluted earnings per share |
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$ |
3.16 |
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Merger-related expenses, restructuring and other charges, and effects of the Incident |
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0.14 |
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Adjusted diluted earnings per share |
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$ |
3.30 |
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Norfolk Southern Corporation | 4
Exhibit 99.2
Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Income
(Unaudited)
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Third Quarter |
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First Nine Months |
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2026 |
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2025 |
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2026 |
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2025 |
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(in millions, except per share amounts) |
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Railway operating revenues |
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Merchandise |
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$ |
2,188 |
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$ |
1,969 |
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$ |
6,206 |
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$ |
5,804 |
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Intermodal |
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919 |
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759 |
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2,576 |
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2,262 |
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Coal |
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419 |
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375 |
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1,207 |
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1,140 |
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Total railway operating revenues |
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3,526 |
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3,103 |
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9,989 |
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9,206 |
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Railway operating expenses |
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Compensation and benefits |
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753 |
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738 |
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2,237 |
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2,169 |
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Purchased services and rents |
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546 |
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519 |
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1,618 |
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1,537 |
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Fuel |
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420 |
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237 |
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1,081 |
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700 |
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Depreciation |
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363 |
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348 |
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1,073 |
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1,040 |
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Materials and other |
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224 |
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147 |
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625 |
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547 |
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Merger-related expenses |
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42 |
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15 |
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145 |
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15 |
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Restructuring and other charges |
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— |
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12 |
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6 |
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22 |
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Eastern Ohio incident |
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28 |
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(11 |
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53 |
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(243 |
) |
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Total railway operating expenses |
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2,376 |
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2,005 |
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6,838 |
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5,787 |
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Income from railway operations |
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1,150 |
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1,098 |
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3,151 |
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3,419 |
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Other income – net |
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30 |
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23 |
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|
97 |
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78 |
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||||
Interest expense on debt |
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193 |
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|
197 |
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587 |
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|
597 |
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||||
Income before income taxes |
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987 |
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|
924 |
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|
|
2,661 |
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2,900 |
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Income taxes |
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228 |
|
|
213 |
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|
621 |
|
|
671 |
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||||
Net income |
|
$ |
759 |
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$ |
711 |
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$ |
2,040 |
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$ |
2,229 |
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Earnings per share – diluted |
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$ |
3.37 |
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$ |
3.16 |
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$ |
9.06 |
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$ |
9.88 |
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Weighted average shares outstanding – diluted |
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225.2 |
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224.7 |
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225.1 |
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225.5 |
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See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Balance Sheets
(Unaudited)
|
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September 30, |
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December 31, |
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|
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2026 |
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2025 |
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($ in millions) |
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|||||
Assets |
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|
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|
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Current assets: |
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|
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Cash and cash equivalents |
|
$ |
1,598 |
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$ |
1,530 |
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Accounts receivable – net |
|
|
1,229 |
|
|
988 |
|
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Materials and supplies |
|
353 |
|
|
271 |
|
||
Other current assets |
|
145 |
|
|
409 |
|
||
Total current assets |
|
|
3,325 |
|
|
|
3,198 |
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Investments |
|
|
4,186 |
|
|
|
4,089 |
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Properties less accumulated depreciation of $15,259 and $14,617, respectively |
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|
36,857 |
|
|
|
36,479 |
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Other assets |
|
|
1,581 |
|
|
|
1,470 |
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Total assets |
|
$ |
45,949 |
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|
$ |
45,236 |
|
Liabilities and stockholders’ equity |
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|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Accounts payable |
|
$ |
2,064 |
|
|
$ |
1,863 |
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Income and other taxes |
|
236 |
|
|
340 |
|
||
Other current liabilities |
|
732 |
|
|
965 |
|
||
Current maturities of long-term debt |
|
649 |
|
|
607 |
|
||
Total current liabilities |
|
|
3,681 |
|
|
|
3,775 |
|
Long-term debt |
|
|
15,964 |
|
|
|
16,480 |
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Other liabilities |
|
|
1,702 |
|
|
|
1,723 |
|
Deferred income taxes |
|
|
7,872 |
|
|
|
7,711 |
|
Total liabilities |
|
|
29,219 |
|
|
|
29,689 |
|
Stockholders’ equity: |
|
|
|
|
|
|
||
Common stock $1.00 per share par value, 1,350,000,000 shares authorized; outstanding 224,616,686 and 224,420,699 shares, respectively, net of treasury shares |
|
226 |
|
|
226 |
|
||
Additional paid-in capital |
|
|
2,356 |
|
|
|
2,296 |
|
Accumulated other comprehensive loss |
|
|
(213 |
) |
|
|
(210 |
) |
Retained income |
|
|
14,361 |
|
|
|
13,235 |
|
Total stockholders’ equity |
|
|
16,730 |
|
|
|
15,547 |
|
Total liabilities and stockholders’ equity |
|
$ |
45,949 |
|
|
$ |
45,236 |
|
See accompanying notes to consolidated financial statements.
Norfolk Southern Corporation and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited)
|
|
First Nine Months |
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|||||
|
|
2026 |
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|
2025 |
|
||
|
|
($ in millions) |
|
|||||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net income |
|
$ |
2,040 |
|
|
$ |
2,229 |
|
Reconciliation of net income to net cash provided by operating activities: |
|
|
|
|
|
|
||
Depreciation |
|
|
1,073 |
|
|
|
1,040 |
|
Deferred income taxes |
|
162 |
|
|
|
315 |
|
|
Gains and losses on properties |
|
|
(19 |
) |
|
|
(142 |
) |
Changes in assets and liabilities affecting operations: |
|
|
|
|
|
|
||
Accounts receivable |
|
|
(243 |
) |
|
|
(53 |
) |
Materials and supplies |
|
|
(82 |
) |
|
|
(20 |
) |
Other current assets |
|
79 |
|
|
|
68 |
|
|
Current liabilities other than debt |
|
|
(108 |
) |
|
|
25 |
|
Other – net |
|
|
(182 |
) |
|
|
(164 |
) |
Net cash provided by operating activities |
|
|
2,720 |
|
|
|
3,298 |
|
Cash flows from investing activities |
|
|
|
|
|
|
||
Property additions |
|
|
(1,407 |
) |
|
|
(1,475 |
) |
Property sales and other transactions |
|
273 |
|
|
|
120 |
|
|
Investment purchases |
|
|
(6 |
) |
|
|
(615 |
) |
Investment sales and other transactions |
|
32 |
|
|
|
52 |
|
|
Net cash used in investing activities |
|
|
(1,108 |
) |
|
|
(1,918 |
) |
Cash flows from financing activities |
|
|
|
|
|
|
||
Dividends |
|
|
(910 |
) |
|
|
(912 |
) |
Common stock transactions |
|
|
(11 |
) |
|
|
1 |
|
Purchase and retirement of common stock |
|
|
(5 |
) |
|
|
(534 |
) |
Proceeds from borrowings |
|
— |
|
|
|
396 |
|
|
Debt repayments |
|
|
(618 |
) |
|
|
(554 |
) |
Net cash used in financing activities |
|
|
(1,544 |
) |
|
|
(1,603 |
) |
Net increase (decrease) in cash and cash equivalents |
|
68 |
|
|
|
(223 |
) |
|
Cash and cash equivalents |
|
|
|
|
|
|
||
At beginning of year |
|
|
1,530 |
|
|
|
1,641 |
|
At end of period |
|
$ |
1,598 |
|
|
$ |
1,418 |
|
Supplemental disclosures of cash flow information |
|
|
|
|
|
|
||
Cash paid during the period for: |
|
|
|
|
|
|
||
Interest (net of amounts capitalized) |
|
$ |
564 |
|
|
$ |
570 |
|
Income taxes (net of refunds) |
|
556 |
|
|
|
433 |
|
|
See accompanying notes to consolidated financial statements.
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Merger-Related Expenses
During the third quarter and first nine months of 2026, we incurred merger-related expenses of $42 million and $145 million, respectively, primarily related to costs associated with employee retention agreements, third-party advisor fees, and legal fees. During 2025, we incurred merger-related expenses of $15 million for both the third quarter and the first nine months.
2. Restructuring and Other Charges
During the first nine months of 2026, we recorded $6 million in severance costs associated with organizational changes. During 2025, we recorded expenses of $12 million in the third quarter and $22 million in the first nine months associated with the rationalization of certain software development projects that had not been placed into service and the restructuring of certain technology functions, including severance costs for impacted employees.
3. Eastern Ohio Incident
On February 3, 2023, a train operated by us derailed in East Palestine, Ohio (the Incident). During the third quarter of 2026, we incurred expenses of $28 million, as compared to $13 million of net expenses for the same period last year. The total amounts recognized include the impact of $3 million and $16 million in recoveries during the third quarters of 2026 and 2025, respectively. In the first nine months of 2026 and 2025, we recognized $53 million of expenses and $219 million of net benefits, respectively, which include $7 million and $394 million of recoveries during the first nine months of 2026 and 2025, respectively.
4. Stock Repurchase Program
We did not repurchase any shares of common stock in the first nine months of 2026, while we repurchased and retired 2.2 million shares of common stock under our stock repurchase program during the same period last year at a cost of $533 million, inclusive of accrued excise taxes. “Purchase and retirement of common stock” in 2026 as presented on the Consolidated Statements of Cash Flows reflects the payment of excise taxes on shares repurchased in 2025.