Revenue growth remains stagnant at 0.2% year-over-year as of 2026Q1, while operating margins have struggled to maintain consistency, dropping from a 41.2% peak in 2024Q3 to 29.3% in the most recent quarter.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 12.19B | 12.18B | 12.12B | 12.16B | 12.74B | 11.14B | 9.79B | 11.3B | 11.46B | 10.55B | 9.89B | 10.51B | 11.62B | 11.24B | 11.04B | 11.17B | 9.52B | 7.97B | 10.66B | 9.43B | 9.41B | 8.53B | 7.31B | 6.47B | 6.27B | 6.17B | 6.16B | 5.2B | 4.22B | 4.22B | 4.77B |
| Revenue Growth % | 0.6% | 0.47% | -0.27% | -4.62% | 14.39% | 13.82% | -13.34% | -1.41% | 8.6% | 6.71% | -5.93% | -9.57% | 3.37% | 1.86% | -1.18% | 17.4% | 19.41% | -25.25% | 13.03% | 0.27% | 10.32% | 16.62% | 13.05% | 3.16% | 1.62% | 0.18% | 18.56% | 23.08% | -0.05% | -11.47% | 2.19% |
| Cost of Goods Sold | 5.95B | 7.01B | 8.36B | 9.35B | 8.01B | 6.78B | 6.39B | 7.4B | 7.5B | 7.03B | 6.82B | 7.63B | 8.05B | 7.99B | 7.92B | 7.97B | 6.85B | 6.01B | 7.58B | 6.86B | 6.85B | 5.93B | 5.24B | 2.83B | 2.38B | 2.42B | 2.54B | 1.93B | 269M | 350M | 1.11B |
| COGS % of Revenue | - | 57.57% | 68.95% | 76.9% | 62.86% | 60.82% | 65.3% | 65.54% | 65.45% | 66.62% | 68.95% | 72.61% | 69.29% | 71.09% | 71.76% | 71.3% | 71.95% | 75.38% | 71.07% | 72.71% | 72.82% | 69.57% | 71.65% | 43.69% | 37.99% | 39.22% | 41.29% | 37.17% | 6.37% | 8.29% | 23.23% |
| Gross Profit | 6.23B | 5.17B | 3.76B | 2.81B | 4.73B | 4.37B | 3.4B | 3.89B | 3.96B | 3.52B | 3.07B | 2.88B | 3.57B | 3.25B | 3.12B | 3.21B | 2.67B | 1.96B | 3.08B | 2.57B | 2.56B | 2.6B | 2.07B | 3.64B | 3.89B | 3.75B | 3.62B | 3.26B | 3.95B | 3.87B | 3.66B |
| Gross Margin % | 51.14% | 42.43% | 31.05% | 23.1% | 37.14% | 39.18% | 34.7% | 34.46% | 34.55% | 33.38% | 31.05% | 27.39% | 30.71% | 28.91% | 28.24% | 28.7% | 28.05% | 24.62% | 28.93% | 27.29% | 27.18% | 30.43% | 28.35% | 56.31% | 62.01% | 60.78% | 58.71% | 62.83% | 93.63% | 91.71% | 76.77% |
| Gross Profit Growth % | - | 37.3% | 34.05% | -40.67% | 8.43% | 28.5% | -12.74% | -1.67% | 12.41% | 14.72% | 6.63% | -19.36% | 9.81% | 4.27% | -2.74% | 20.12% | 36.03% | -36.38% | 19.81% | 0.66% | -1.46% | 25.18% | -43.08% | -6.33% | 3.68% | 3.71% | 10.78% | -17.41% | 2.04% | 5.77% | 1.39% |
| Operating Expenses | 3.28B | 1.16B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 437M | 371M | 3.69B | 3.07B | 3.03B | 3.27B | 2.82B | 3.09B | 2.83B | 3.06B |
| OpEx % of Revenue | - | 9.52% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 5.12% | 5.07% | 57.11% | 49% | 49.09% | 53.04% | 54.32% | 73.21% | 66.99% | 64.14% |
| Selling, General & Admin | 753M | 753M | -120M | -117M | -126M | -102M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 3.06B | 2.36B | 2.3B | 2.52B | 2.13B | 1.68B | 1.65B | 1.65B |
| SG&A % of Revenue | - | 6.18% | -0.99% | -0.96% | -0.99% | -0.92% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | 47.25% | 37.7% | 37.28% | 40.88% | 41.02% | 39.85% | 39.1% | 34.5% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 2M | 407M | 120M | 117M | 126M | 102M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 437M | 371M | 638M | 708M | 729M | 749M | 691M | 1.41B | 1.18B | 1.41B |
| Operating Income | 3.95B | 4.01B | 3.76B | 2.81B | 4.73B | 4.37B | 3.4B | 3.89B | 3.96B | 3.52B | 3.07B | 2.88B | 3.57B | 3.25B | 3.12B | 3.21B | 2.67B | 1.96B | 3.08B | 2.57B | 2.56B | 2.16B | 1.7B | 1.06B | 1.16B | 1.01B | 633M | 718M | 1.05B | 1.21B | 1.2B |
| Operating Margin % | 32.39% | 32.91% | 31.05% | 23.1% | 37.14% | 39.18% | 34.7% | 34.46% | 34.55% | 33.38% | 31.05% | 27.39% | 30.71% | 28.91% | 28.24% | 28.7% | 28.05% | 24.62% | 28.93% | 27.29% | 27.18% | 25.31% | 23.28% | 16.45% | 18.47% | 16.32% | 10.28% | 13.82% | 24.92% | 28.72% | 25.09% |
| Operating Income Growth % | - | 6.48% | 34.05% | -40.67% | 8.43% | 28.5% | -12.74% | -1.67% | 12.41% | 14.72% | 6.63% | -19.36% | 9.81% | 4.27% | -2.74% | 20.12% | 36.03% | -36.38% | 19.81% | 0.66% | 18.49% | 26.79% | 59.96% | -8.12% | 14.99% | 59.08% | -11.84% | -31.75% | -13.27% | 1.34% | 10.19% |
| EBITDA | 4.99B | 5.4B | 5.12B | 4.11B | 5.95B | 5.55B | 4.55B | 5.03B | 5.06B | 4.58B | 4.13B | 3.94B | 4.53B | 4.17B | 4.04B | 4.08B | 3.5B | 2.81B | 3.9B | 3.36B | 3.31B | 2.94B | 2.31B | 1.59B | 1.69B | 1.53B | 1.15B | 1.21B | 1.5B | 1.65B | 1.63B |
| EBITDA Margin % | 40.98% | 44.34% | 42.21% | 33.78% | 46.72% | 49.78% | 46.49% | 44.54% | 44.17% | 43.38% | 41.78% | 37.47% | 38.94% | 37.11% | 36.59% | 36.48% | 36.73% | 35.22% | 36.57% | 35.62% | 35.15% | 34.54% | 31.61% | 24.61% | 26.91% | 24.86% | 18.67% | 23.23% | 35.58% | 38.95% | 34.09% |
| EBITDA Growth % | -13.18% | 5.55% | 24.62% | -31.04% | 7.36% | 21.86% | -9.54% | -0.59% | 10.57% | 10.8% | 4.9% | -12.99% | 8.46% | 3.29% | -0.86% | 16.6% | 24.51% | -28.01% | 16.04% | 1.6% | 12.29% | 27.43% | 45.16% | -5.63% | 9.97% | 33.39% | -4.72% | -19.64% | -8.69% | 1.16% | 8.43% |
| D&A (Non-Cash Add-back) | 1.05B | 1.39B | 1.35B | 1.3B | 1.22B | 1.18B | 1.15B | 1.14B | 1.1B | 1.05B | 1.06B | 1.06B | 956M | 922M | 922M | 869M | 826M | 845M | 815M | 786M | 750M | 787M | 609M | 528M | 529M | 527M | 517M | 489M | 450M | 432M | 429.2M |
| EBIT | 3.28B | 4.46B | 4.14B | 3.04B | 4.82B | 4.52B | 3.15B | 4.09B | 4.03B | 3.68B | 3.15B | 2.99B | 3.69B | 3.5B | 3.25B | 3.37B | 2.85B | 2.09B | 3.19B | 2.71B | 2.72B | 2.2B | 1.81B | -52M | -201M | -121M | 349M | 442M | 862M | 1.29B | 1.56B |
| Net Interest Income | -593M | -792M | -807M | -722M | -692M | -646M | -625M | -604M | -557M | -550M | -559M | -541M | -548M | -529M | -496M | -449M | -466M | -467M | -444M | -396M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10M | 8M | 9M | 8M | 8M | 9M | 12M | 0 | 0 | 45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 790M | 792M | 807M | 722M | 692M | 646M | 625M | 604M | 557M | 550M | 569M | 545M | 557M | 537M | 504M | 455M | 462M | 467M | 444M | 441M | 0 | 497M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -545M | -343M | -435M | -488M | -603M | -487M | -867M | -402M | -490M | -394M | -488M | -437M | -436M | -286M | -360M | -288M | -302M | -340M | -334M | -337M | -327M | -461M | -400M | -478M | -452M | -454M | -383M | -367M | -207M | -215M | 1M |
| Pretax Income | 3.4B | 3.67B | 3.33B | 2.32B | 4.13B | 3.88B | 2.53B | 3.49B | 3.47B | 3.13B | 2.58B | 2.44B | 3.13B | 2.96B | 2.76B | 2.92B | 2.37B | 1.62B | 2.75B | 2.24B | 2.23B | 1.7B | 1.3B | 586M | 706M | 553M | 250M | 351M | 845M | 998M | 1.2B |
| Pretax Margin % | 27.92% | 30.09% | 27.46% | 19.09% | 32.4% | 34.81% | 25.85% | 30.9% | 30.28% | 29.65% | 26.11% | 23.23% | 26.96% | 26.37% | 24.98% | 26.12% | 24.87% | 20.35% | 25.8% | 23.72% | 23.71% | 19.9% | 17.81% | 9.06% | 11.26% | 8.96% | 4.06% | 6.76% | 20.02% | 23.63% | 25.09% |
| Income Tax | 732M | 792M | 707M | 493M | 860M | 873M | 517M | 769M | 803M | -2.28B | 914M | 886M | 1.13B | 1.05B | 1.01B | 1B | 871M | 588M | 1.03B | 773M | 749M | 416M | 379M | 175M | 246M | 191M | 78M | 112M | 215M | 299M | 426.5M |
| Effective Tax Rate % | 21.52% | 21.61% | 21.24% | 21.25% | 20.82% | 22.51% | 20.43% | 22.03% | 23.15% | -72.76% | 35.4% | 36.28% | 36.18% | 35.58% | 36.58% | 34.34% | 36.8% | 36.25% | 37.6% | 34.56% | 33.59% | 24.51% | 29.11% | 29.86% | 34.84% | 34.54% | 31.2% | 31.91% | 25.44% | 29.96% | 35.63% |
| Net Income | 2.67B | 2.87B | 2.62B | 1.83B | 3.27B | 3B | 2.01B | 2.72B | 2.67B | 5.4B | 1.67B | 1.56B | 2B | 1.91B | 1.75B | 1.92B | 1.5B | 1.03B | 1.72B | 1.46B | 1.48B | 1.28B | 923M | 535M | 460M | 375M | 172M | 239M | 734M | 721M | 770.4M |
| Net Margin % | 21.91% | 23.59% | 21.63% | 15.03% | 25.66% | 26.97% | 20.56% | 24.1% | 23.27% | 51.22% | 16.87% | 14.8% | 17.21% | 16.99% | 15.84% | 17.15% | 15.72% | 12.98% | 16.1% | 15.52% | 15.74% | 15.02% | 12.62% | 8.27% | 7.34% | 6.08% | 2.79% | 4.6% | 17.39% | 17.07% | 16.15% |
| Net Income Growth % | -19.55% | 9.57% | 43.51% | -44.13% | 8.82% | 49.28% | -26.05% | 2.1% | -50.67% | 223.98% | 7.2% | -22.2% | 4.71% | 9.21% | -8.72% | 28.07% | 44.68% | -39.74% | 17.21% | -1.15% | 15.61% | 38.79% | 72.52% | 16.3% | 22.67% | 118.02% | -28.03% | -67.44% | 1.8% | -6.41% | 8.1% |
| Net Income (Continuing) | 2.67B | 2.87B | 2.62B | 1.83B | 3.27B | 3B | 2.01B | 2.72B | 2.67B | 5.4B | 1.67B | 1.56B | 2B | 1.91B | 1.75B | 1.92B | 1.5B | 1.03B | 1.72B | 1.46B | 1.48B | 1.28B | 923M | 411M | 460M | 362M | 172M | 239M | 630M | 699M | 753M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 9M | 45M | 45M | 50M | 50M | 49M | 49M | 49.5M |
| EPS (Diluted) | - | 12.75 | 11.57 | 8.02 | 13.88 | 12.11 | 7.84 | 10.25 | 9.51 | 18.61 | 5.62 | 5.10 | 6.39 | 6.04 | 5.37 | 5.45 | 4.00 | 2.76 | 4.52 | 3.68 | 3.57 | 3.11 | 2.31 | 1.37 | 1.18 | 0.97 | 0.45 | 0.63 | 1.93 | 1.90 | 2.01 |
| EPS Growth % | -18.92% | 10.2% | 44.26% | -42.22% | 14.62% | 54.46% | -23.51% | 7.78% | -48.9% | 231.14% | 10.2% | -20.19% | 5.79% | 12.48% | -1.47% | 36.25% | 44.93% | -38.94% | 22.83% | 3.08% | 14.79% | 34.63% | 68.61% | 16.1% | 21.65% | 115.56% | -28.57% | -67.36% | 1.58% | -5.47% | 11.67% |
| EPS (Basic) | - | 12.75 | 11.58 | 8.04 | 13.92 | 12.16 | 7.88 | 10.32 | 9.94 | 18.76 | 5.66 | 5.13 | 6.44 | 6.10 | 5.42 | 5.52 | 4.06 | 2.79 | 4.60 | 3.74 | 3.63 | 3.17 | 2.34 | 1.37 | 1.18 | 0.97 | 0.45 | 0.63 | 1.94 | 1.91 | 2.03 |
| Diluted Shares Outstanding | 0 | 224.8M | 226.4M | 227.4M | 235.6M | 248.1M | 256.6M | 265.6M | 280.2M | 290.3M | 296M | 304.4M | 312.5M | 315.5M | 325.2M | 351.3M | 371.8M | 372.1M | 380M | 397.8M | 414.85M | 411.9M | 399.57M | 390.51M | 389.83M | 386.6M | 382.22M | 379.37M | 380.31M | 379.47M | 383.08M |
| Basic Shares Outstanding | 0 | 224.8M | 226.1M | 226.9M | 234.8M | 246.9M | 255.1M | 263.3M | 268.1M | 287.9M | 293.9M | 301.9M | 309.4M | 311.9M | 320.9M | 345.5M | 366.5M | 367.1M | 372.3M | 389.6M | 407.99M | 404.1M | 394.44M | 390.51M | 389.83M | 386.6M | 382.22M | 379.37M | 378.35M | 377.49M | 379.31M |
| Dividend Payout Ratio | - | 42.29% | 46.57% | 67.05% | 35.69% | 34.21% | 47.69% | 34.86% | 31.66% | 13.01% | 41.67% | 45.82% | 34.35% | 33.35% | 35.68% | 30.06% | 34.36% | 48.36% | 26.57% | 25.75% | 18.77% | 15.14% | 15.38% | 21.87% | 21.96% | 24.8% | 177.91% | 127.2% | 41.28% | 41.75% | 36.83% |
Operational and Regulatory Volatility
According to recent financial filings, Norfolk Southern's revenue growth remains largely stagnant, with the most recent quarter showing a marginal 0.2% year-over-year increase, reflecting the company's ongoing struggle to achieve meaningful top-line expansion in a challenging industrial environment characterized by persistent volume volatility across its core segments.
The lack of consistent revenue growth suggests that NSC is currently unable to leverage its rail network to capture significant incremental demand. Investors should monitor whether this trend indicates a structural loss of market share to trucking or merely a temporary reflection of broader industrial production cycles in the Eastern U.S.
As reported in quarterly income statements, NSC's gross margins have exhibited significant fluctuations, ranging from a low of 10.4% in 2024Q1 to a peak of 70.5% in 2025Q4, indicating that the company's profitability is highly sensitive to operational disruptions and the timing of significant cost-related charges.
The wide variance in margin performance suggests that the company's cost structure remains vulnerable to non-recurring events and operational inefficiencies. This instability complicates the assessment of underlying pricing power, as the reported figures appear heavily influenced by periodic spikes in operating expenses rather than consistent margin expansion.
Based on the provided income statement data, NSC's operating income has failed to scale consistently with revenue, as evidenced by the 2026Q1 operating margin of 29.3% which sits well below the 41.2% peak observed in 2024Q3, highlighting a lack of sustained operating leverage in the current model.
The inability to maintain high operating margins suggests that the company's fixed-cost base remains difficult to manage during periods of low volume growth. This trend warrants further investigation into whether management's efficiency initiatives are being offset by rising maintenance and regulatory compliance costs.
Analysis of the income statement reveals that NSC's net income is subject to extreme volatility, with EPS dropping from $4.85 in 2024Q3 to $2.43 in 2026Q1, a trend that suggests the company's earnings quality may be compromised by unpredictable operational costs and potential reserve adjustments.
Short-sellers may focus on the inconsistency of these earnings as evidence that the company's operational recovery is not yet durable. The significant swings in profitability imply that investors should be cautious about relying on current earnings levels as a baseline for future valuation.
Quick answers to the most common questions about buying NSC stock.
For fiscal year 2025, Norfolk Southern Corporation (NSC) reported total revenue of $12.18B. This represents a 155.3% increase compared to $4.77B in 1996.
Norfolk Southern Corporation (NSC) is profitable, generating $2.87B in net income for the fiscal year ending 2025 with a net profit margin of 23.6%.
Norfolk Southern Corporation (NSC) reported an operating income of $4.01B, resulting in an operating profit margin of 32.9%. This margin reflects the operational efficiency of the business before interest and taxes.
Norfolk Southern Corporation (NSC) generated $5.17B in gross profit for the year, representing a gross profit margin of 42.4%. This demonstrates the company's core pricing power and production efficiency.