M
Macro Analyst
Mar 6, 2026 · bullish
Union Pacific's financial performance has been impressive, with the company reporting $24.5B in revenue and $7.1B in net income in its most recent quarter. Its net margin stands at 29.1%, indicating strong profitability. Over the past four quarters, UNP has delivered robust earnings growth, with EPS expanding from $2.70 to $11.98. This earnings expansion has been driven by the company's ability to leverage its operational efficiency and pricing power to drive revenue growth. Union Pacific has also generated substantial free cash flow, reporting $9.3B over the past four quarters. This strong cash flow generation has enabled the company to invest in its business, reduce debt, and return capital to shareholders through dividends and share repurchases. UNP's debt-to-equity ratio of 2.8 suggests a healthy balance sheet, providing the company with financial flexibility to navigate economic cycles. Looking ahead, Union Pacific is well-positioned to benefit from continued economic growth and the ongoing recovery in transportation demand. I expect the company's earnings to expand by 6.1% over the next 12 months, driven by increased operating leverage and favorable industry trends. With its robust financial profile, shareholder-friendly capital allocation, and favorable industry trends, Union Pacific remains an attractive investment opportunity for long-term investors.

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