Union Pacific Corporation filed its 10-Q with the SEC, and its figures are now in our data. Revenue over the twelve months to Q3 2026 was $26.36 billion, which rose 7.4% on the year before. That growth rate was up 3.2 percentage points on the rate a quarter earlier.

What stands out

Sales are rising faster than profit. Revenue grew 7.4% but the operating margin fell 0.5 percentage points.

Growth and profit

The trailing operating margin was 40.1%, down 0.5 percentage points from a year earlier. The trailing net margin was 28.9%. Net income over the twelve months was $7.62 billion, which rose 8.0% on the year before.

Cash flow

Operating cash flow over the twelve months was $10.53 billion, up 8.2% on the year before. Capital spending was $3.83 billion, or 14.5% of revenue. Free cash flow, operating cash flow less capital spending, was $6.69 billion, up 11.3% on the year before. Free cash flow was 25.4% of revenue (the free-cash-flow margin), up 0.9 percentage points from a year earlier. The average diluted share count fell 0.8% over the year.

In context

Today’s free-cash-flow margin of 25.4% is higher than 86% of the company’s own past quarterly readings, which have ranged from 4.5% to 30.5%. Today’s operating margin of 40.1% is higher than 80% of the company’s own past quarterly readings, which have ranged from 23.1% to 42.9%. Today’s twelve-month revenue growth rate of 7.4% is higher than 68% of the company’s own past quarterly readings, which have ranged from −14.2% to 20.0%.

Guidance

The company gave its 2026 Outlook guidance for Capital plan: $3.5 billion.

What it means for value

In our model, growth 5 percentage points lower would lower the value by 29.6%, and 5 percentage points higher would raise it by 38.6%. A free-cash-flow margin 1 percentage point lower would lower it by 4.1%.

What to watch

The next filing will show whether the recent acceleration in revenue growth continues. It will also reveal if the operating margin stabilizes after its recent decline. Finally, it will indicate if capital spending remains aligned with the company’s stated outlook.