Revenue growth surged to 15.3% in 2026Q3 with operating income rising to $2.9B (40.9% margin), yet gross margin compressed to 40.9% from the 45-46.5% range held over the prior eight quarters as COGS grew 30.3% year-over-year, suggesting input cost pressure or a potential expense reclassification given zero reported SG&A.
Union Pacific Corporation (UNP) annual income statement — 30-year revenue, gross profit & net income history
| 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 | 26.36B | 24.51B | 24.25B | 24.12B | 24.88B | 21.8B | 19.53B | 21.71B | 22.83B | 21.24B | 19.94B | 21.81B | 23.99B | 21.96B | 20.93B | 19.56B | 16.96B | 14.14B | 17.97B | 16.28B | 15.58B | 13.58B | 12.21B | 11.55B | 12.49B | 11.97B | 11.88B | 11.27B | 10.55B | 11.08B | 8.79B |
| Revenue Growth % | 7.4% | 1.07% | 0.54% | -3.04% | 14.08% | 11.63% | -10.02% | -4.92% | 7.5% | 6.51% | -8.58% | -9.07% | 9.22% | 4.96% | 7% | 15.28% | 19.95% | -21.3% | 10.36% | 4.53% | 14.73% | 11.16% | 5.75% | -7.53% | 4.33% | 0.8% | 5.37% | 6.82% | -4.75% | 26.1% | 17.37% |
| Cost of Goods Sold | 14.75B | 9.96B | 13.21B | 13.59B | 13.67B | 11.29B | 10.35B | 12.09B | 13.29B | 12.23B | 11.67B | 12.84B | 14.31B | 13.67B | 13.39B | 6.75B | 3.18B | 2.23B | 7.21B | 6.67B | 6.45B | 5.82B | 4.95B | 4.04B | 4.05B | 3.16B | 3.22B | 2.76B | 2.83B | 3.68B | 2.63B |
| COGS % of Revenue | - | 40.62% | 54.48% | 56.35% | 54.95% | 51.78% | 53.01% | 55.71% | 58.22% | 57.58% | 58.53% | 58.85% | 59.66% | 62.23% | 64% | 34.53% | 18.74% | 15.75% | 40.13% | 40.99% | 41.39% | 42.88% | 40.51% | 35% | 32.39% | 26.39% | 27.14% | 24.47% | 26.85% | 33.25% | 29.99% |
| Gross Profit | 11.61B | 14.55B | 11.04B | 10.53B | 11.21B | 10.51B | 9.18B | 9.61B | 9.54B | 9.01B | 8.27B | 8.98B | 9.68B | 8.29B | 7.53B | 12.8B | 13.79B | 11.92B | 10.76B | 9.61B | 9.13B | 7.76B | 7.27B | 7.51B | 8.45B | 8.81B | 8.65B | 8.52B | 7.72B | 7.39B | 6.15B |
| Gross Margin % | 44.04% | 59.38% | 45.52% | 43.65% | 45.05% | 48.22% | 46.99% | 44.29% | 41.78% | 42.42% | 41.47% | 41.15% | 40.34% | 37.77% | 36% | 65.47% | 81.26% | 84.25% | 59.87% | 59.01% | 58.61% | 57.12% | 59.49% | 65% | 67.61% | 73.61% | 72.86% | 75.53% | 73.15% | 66.75% | 70.01% |
| Gross Profit Growth % | - | 31.83% | 4.84% | -6.03% | 6.57% | 14.54% | -4.52% | 0.79% | 5.88% | 8.95% | -7.88% | -7.24% | 16.66% | 10.12% | -41.17% | -7.12% | 15.68% | 10.75% | 11.98% | 5.24% | 17.72% | 6.73% | -3.21% | -11.1% | -4.18% | 1.84% | 1.63% | 10.31% | 4.38% | 20.22% | 6.68% |
| Operating Expenses | 1.07B | 4.71B | 1.33B | 1.45B | 1.29B | 1.18B | 1.34B | 1.06B | 1.02B | 948M | 997M | 924M | 924M | 849M | 788M | 7.08B | 6.52B | 6.18B | 12.57B | 5.91B | 5.84B | 5.55B | 5.28B | 4.96B | 5.71B | 5.45B | 5.45B | 5.37B | 5.42B | 5.21B | 4.02B |
| OpEx % of Revenue | - | 19.23% | 5.47% | 6% | 5.18% | 5.39% | 6.89% | 4.88% | 4.48% | 4.46% | 5% | 4.24% | 3.85% | 3.87% | 3.77% | 36.2% | 38.43% | 43.68% | 69.94% | 36.31% | 37.46% | 40.87% | 43.21% | 42.93% | 45.69% | 45.52% | 45.89% | 47.62% | 51.34% | 47.02% | 45.78% |
| Selling, General & Admin | 1.07B | 3.33B | 0 | 1.45B | 1.29B | 1.18B | 1.58B | 1.27B | 1.22B | 1.11B | 997M | 0 | 0 | 0 | 0 | 4.68B | 4.31B | 4.06B | 5.78B | 4.59B | 4.6B | 4.38B | 4.17B | 3.89B | 4.5B | 4.28B | 4.31B | 4.29B | 4.35B | 4.17B | 3.26B |
| SG&A % of Revenue | - | 13.57% | - | 6% | 5.18% | 5.39% | 8.07% | 5.87% | 5.36% | 5.25% | 5% | - | - | - | - | 23.94% | 25.43% | 28.73% | 32.18% | 28.2% | 29.52% | 32.22% | 34.11% | 33.69% | 36.03% | 35.71% | 36.29% | 38.01% | 41.2% | 37.6% | 37.1% |
| 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 | 0 | 1.39B | 1.33B | 0 | 0 | 0 | -231M | -215M | -202M | -167M | 0 | 226M | 151M | 128M | 108M | 2.4B | 84M | 73M | 87M | 1.32B | 1.24B | 1.18B | 1.11B | 1.07B | 1.21B | 1.17B | 1.14B | 1.08B | 1.07B | 1.04B | 762M |
| Operating Income | 10.54B | 9.84B | 9.71B | 9.08B | 9.92B | 9.34B | 7.83B | 8.55B | 8.52B | 8.06B | 7.27B | 8.05B | 8.75B | 7.45B | 6.75B | 5.72B | 4.98B | 3.38B | 4.08B | 3.38B | 2.88B | 1.79B | 1.29B | 2.13B | 2.32B | 2.07B | 1.9B | 1.8B | -171M | 1.25B | 1.53B |
| Operating Margin % | 39.98% | 40.14% | 40.05% | 37.66% | 39.87% | 42.83% | 40.11% | 39.4% | 37.3% | 37.95% | 36.47% | 36.91% | 36.49% | 33.9% | 32.23% | 29.27% | 29.36% | 23.89% | 22.68% | 20.73% | 18.51% | 13.22% | 10.6% | 18.47% | 18.61% | 17.31% | 16.02% | 16% | -1.62% | 11.31% | 17.45% |
| Operating Income Growth % | - | 1.3% | 6.95% | -8.42% | 6.2% | 19.2% | -8.42% | 0.43% | 5.66% | 10.85% | -9.69% | -8.01% | 17.55% | 10.39% | 17.84% | 14.92% | 47.41% | -17.08% | 20.74% | 17.03% | 60.67% | 38.61% | -39.29% | -8.22% | 12.16% | 8.88% | 5.49% | 1154.97% | -113.65% | -18.26% | 14.32% |
| EBITDA | 13.08B | 12.3B | 12.11B | 11.4B | 12.16B | 11.55B | 10.04B | 10.77B | 10.71B | 10.17B | 9.31B | 10.06B | 10.66B | 9.22B | 8.51B | 7.34B | 6.47B | 4.81B | 5.46B | 4.7B | 4.12B | 2.97B | 2.41B | 3.2B | 3.53B | 3.25B | 3.04B | 2.89B | 899M | 2.3B | 2.29B |
| EBITDA Margin % | 49.61% | 50.2% | 49.94% | 47.27% | 48.9% | 52.95% | 51.42% | 49.61% | 46.9% | 47.86% | 46.69% | 46.14% | 44.43% | 41.99% | 40.64% | 37.54% | 38.13% | 33.98% | 30.4% | 28.84% | 26.45% | 21.87% | 19.7% | 27.7% | 28.26% | 27.11% | 25.62% | 25.61% | 8.52% | 20.72% | 26.12% |
| EBITDA Growth % | 5.38% | 1.59% | 6.24% | -6.27% | 5.34% | 14.95% | -6.74% | 0.58% | 5.33% | 9.19% | -7.49% | -5.56% | 15.55% | 8.44% | 15.86% | 13.5% | 34.58% | -12.01% | 16.31% | 13.95% | 38.75% | 23.44% | -24.81% | -9.35% | 8.75% | 6.67% | 5.4% | 221.13% | -60.84% | 0.04% | 15.73% |
| D&A (Non-Cash Add-back) | 2.54B | 2.46B | 2.4B | 2.32B | 2.25B | 2.21B | 2.21B | 2.22B | 2.19B | 2.1B | 2.04B | 2.01B | 1.9B | 1.78B | 1.76B | 1.62B | 1.49B | 1.43B | 1.39B | 1.32B | 1.24B | 1.18B | 1.11B | 1.07B | 1.21B | 1.17B | 1.14B | 1.08B | 1.07B | 1.04B | 762M |
| EBIT | 11.19B | 10.47B | 10.06B | 9.57B | 10.34B | 9.63B | 8.12B | 8.8B | 8.61B | 8.35B | 7.46B | 8.05B | 8.75B | 7.57B | 6.85B | 5.84B | 5.04B | 3.57B | 4.17B | 3.49B | 3B | 1.94B | 1.38B | 2.21B | 2.58B | 2.18B | 2.03B | 1.94B | 18M | 1.28B | 1.61B |
| Net Interest Income | -1.2B | -1.29B | -1.19B | -1.29B | -1.27B | -1.15B | -1.13B | -987M | -840M | -703M | -687M | -617M | -557M | -522M | -532M | -569M | -598M | -595M | -490M | -432M | -448M | -504M | -527M | -574M | -632M | -700M | -723M | -733M | -714M | -605M | -501M |
| Interest Income | 71M | 16M | 76M | 52M | 0 | 5M | 12M | 63M | 30M | 16M | 11M | 5M | 4M | 4M | 3M | 3M | 4M | 5M | 21M | 50M | 29M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 1.27B | 1.31B | 1.27B | 1.34B | 1.27B | 1.16B | 1.14B | 1.05B | 870M | 719M | 698M | 622M | 561M | 526M | 535M | 572M | 602M | 600M | 511M | 482M | 477M | 504M | 527M | 574M | 633M | 701M | 723M | 733M | 714M | 605M | 501M |
| Other Income/Expense | -622M | -673M | -919M | -849M | -845M | -860M | -854M | -807M | -776M | -474M | -477M | -396M | -410M | -398M | -427M | -460M | -548M | -405M | -419M | -366M | -359M | -359M | -686M | -496M | -379M | -1.41B | -593M | -602M | -525M | -577M | -420M |
| Pretax Income | 9.92B | 9.17B | 8.79B | 8.23B | 9.07B | 8.48B | 6.98B | 7.75B | 7.74B | 7.63B | 6.77B | 7.66B | 8.34B | 7.05B | 6.32B | 5.26B | 4.43B | 2.97B | 3.66B | 3.01B | 2.52B | 1.44B | 856M | 1.64B | 2.02B | 1.53B | 1.31B | 1.2B | -696M | 676M | 1.11B |
| Pretax Margin % | 37.62% | 37.4% | 36.26% | 34.13% | 36.47% | 38.88% | 35.73% | 35.69% | 33.9% | 35.93% | 33.93% | 35.1% | 34.78% | 32.09% | 30.19% | 26.92% | 26.13% | 21.03% | 20.34% | 18.48% | 16.21% | 10.58% | 7.01% | 14.17% | 16.14% | 12.8% | 11.03% | 10.66% | -6.6% | 6.1% | 12.67% |
| Income Tax | 2.3B | 2.03B | 2.05B | 1.85B | 2.07B | 1.96B | 1.63B | 1.83B | 1.77B | -3.08B | 2.53B | 2.88B | 3.16B | 2.66B | 2.38B | 1.97B | 1.65B | 1.08B | 1.32B | 1.15B | 919M | 410M | 252M | 581M | 675M | 567M | 468M | 419M | -63M | 244M | 380M |
| Effective Tax Rate % | 23.19% | 22.13% | 23.28% | 22.52% | 22.86% | 23.06% | 23.37% | 23.6% | 22.93% | -40.36% | 37.44% | 37.67% | 37.91% | 37.74% | 37.59% | 37.46% | 37.29% | 36.45% | 36.05% | 38.35% | 36.4% | 28.55% | 29.44% | 35.49% | 33.48% | 36.99% | 35.73% | 34.86% | 9.05% | 36.09% | 34.14% |
| Net Income | 7.62B | 7.14B | 6.75B | 6.38B | 7B | 6.52B | 5.35B | 5.92B | 5.97B | 10.71B | 4.23B | 4.77B | 5.18B | 4.39B | 3.94B | 3.29B | 2.78B | 1.89B | 2.33B | 1.85B | 1.61B | 1.03B | 604M | 1.58B | 1.34B | 966M | 842M | 810M | -633M | 432M | 904M |
| Net Margin % | 28.9% | 29.12% | 27.82% | 26.45% | 28.13% | 29.92% | 27.38% | 27.27% | 26.13% | 50.43% | 21.23% | 21.88% | 21.59% | 19.98% | 18.84% | 16.83% | 16.39% | 13.36% | 12.99% | 11.39% | 10.31% | 7.56% | 4.94% | 13.72% | 10.74% | 8.07% | 7.09% | 7.19% | -6% | 3.9% | 10.29% |
| Net Income Growth % | 8.03% | 5.8% | 5.77% | -8.85% | 7.28% | 21.95% | -9.63% | -0.79% | -44.31% | 153.06% | -11.3% | -7.88% | 18.05% | 11.29% | 19.78% | 18.42% | 47.09% | -19.06% | 25.88% | 15.5% | 56.53% | 69.87% | -61.89% | 18.2% | 38.82% | 14.73% | 3.95% | 227.96% | -246.53% | -52.21% | -4.44% |
| Net Income (Continuing) | 7.62B | 7.14B | 6.75B | 6.38B | 7B | 6.52B | 5.35B | 5.92B | 5.97B | 10.71B | 4.23B | 4.77B | 5.18B | 4.39B | 3.94B | 3.29B | 2.78B | 1.89B | 2.34B | 1.85B | 1.61B | 1.03B | 604M | 1.06B | 1.26B | 934M | 842M | 783M | -633M | 432M | 733M |
| 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 | 0 | 0 | 0 | 0 | 0 | 1.5B | 0 | 0 |
| EPS (Diluted) | 12.81 | 11.97 | 11.09 | 10.45 | 11.21 | 9.95 | 7.88 | 8.38 | 7.91 | 13.36 | 5.07 | 5.49 | 5.75 | 4.71 | 4.14 | 3.36 | 2.76 | 1.87 | 2.27 | 1.73 | 1.48 | 0.96 | 0.58 | 1.48 | 1.21 | 0.89 | 0.78 | 0.75 | -0.64 | 0.44 | 1.04 |
| EPS Growth % | 8.99% | 7.94% | 6.12% | -6.78% | 12.66% | 26.27% | -5.97% | 5.94% | -40.79% | 163.51% | -7.65% | -4.52% | 22.08% | 13.77% | 23.21% | 21.74% | 47.59% | -17.62% | 31.21% | 16.89% | 54.17% | 65.52% | -60.81% | 22.31% | 35.96% | 14.1% | 4% | 217.19% | -245.45% | -57.69% | -9.57% |
| EPS (Basic) | - | 12.01 | 11.10 | 10.47 | 11.24 | 9.98 | 7.90 | 8.41 | 7.95 | 13.42 | 5.09 | 5.51 | 5.77 | 4.74 | 4.17 | 3.39 | 2.79 | 1.88 | 2.29 | 1.74 | 1.49 | 0.97 | 0.58 | 1.56 | 1.33 | 0.97 | 0.85 | 0.82 | -0.64 | 0.44 | 1.04 |
| Diluted Shares Outstanding | 594.5M | 593.5M | 608.6M | 610.2M | 624M | 655.4M | 679.1M | 706.1M | 754.3M | 801.7M | 835.4M | 869.4M | 901.1M | 931.6M | 953M | 979.6M | 1.01B | 1.01B | 1.03B | 1.07B | 1.09B | 1.07B | 1.05B | 1.07B | 1.11B | 1.09B | 1.08B | 1.08B | 984M | 992.4M | 872M |
| Basic Shares Outstanding | 593.7M | 592.5M | 607.6M | 609.2M | 622.7M | 653.8M | 677.3M | 703.5M | 750.9M | 798.4M | 832.4M | 866.2M | 897.1M | 926.6M | 946.2M | 971.4M | 996.4M | 1.01B | 1.02B | 1.06B | 1.08B | 1.05B | 1.04B | 1.02B | 1.01B | 992M | 986M | 986.4M | 984M | 982.8M | 866.8M |
| Dividend Payout Ratio | - | 45.33% | 47.62% | 49.74% | 45.14% | 42.93% | 49.09% | 43.89% | 38.54% | 18.5% | 44.39% | 49.12% | 31.51% | 30.38% | 29.06% | 25.43% | 21.65% | 28.78% | 20.6% | 19.62% | 20.05% | 30.6% | 51.32% | 14.76% | - | 20.5% | 23.63% | 24.44% | - | 97.69% | 39.05% |
Quick answers to the most common questions about buying UNP stock.
For fiscal year 2025, Union Pacific Corporation (UNP) reported total revenue of $24.51B. This represents a 179.0% increase compared to $8.79B in 1996.
Union Pacific Corporation (UNP) is profitable, generating $7.14B in net income for the fiscal year ending 2025 with a net profit margin of 29.1%.
Union Pacific Corporation (UNP) reported an operating income of $9.84B, resulting in an operating profit margin of 40.1%. This margin reflects the operational efficiency of the business before interest and taxes.
Union Pacific Corporation (UNP) generated $14.55B in gross profit for the year, representing a gross profit margin of 59.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Gross margin compression despite revenue surge
Metrics are mathematically derived from official filings.
Revenue Growth Accelerates Sharply in 2026
UNP's year-over-year revenue growth surged from a mere 3.2% in 2026Q1 to 15.3% in 2026Q3, reaching $7.2B—marking a significant departure from the flat-to-modest growth pattern observed throughout 2024 and 2025, suggesting either a meaningful volume recovery, successful pricing actions, or both.
The acceleration is pronounced: after eight quarters of essentially flat revenue (0.7%–3.2% YoY growth from 2024Q2 through 2026Q1), the 2026Q2 jump to 11.5% and the 2026Q3 surge to 15.3% represent a structural break from trend. This pattern could reflect nearshoring-driven demand for Mexico gateway traffic, improved intermodal volumes, or fuel surcharge pass-through, though the data does not disaggregate volume versus price effects. Investors should verify whether this acceleration is being driven by organic freight demand or one-time factors such as revised fuel surcharge mechanisms, given that the company's Premium and Industrial segments are most sensitive to macroeconomic cyclicality. The durability of this growth trajectory remains the most critical variable in the forward earnings model.
Gross Margin Compresses Despite Revenue Growth
In 2026Q3, gross margin fell to 40.9% from the 45–46.5% range maintained over the prior eight quarters, as COGS spiked to $4.3B against $2.9B in gross profit—a meaningful structural deterioration that coincides with the revenue acceleration and warrants investigation into input cost pressures or mix shift.
The Q3 2026 gross margin decline is anomalous and material. COGS jumped to $4.3B from $3.7B in Q2—a sequential increase of 16.2%—while revenue rose only 4.3% sequentially. This suggests either a significant input cost event (wage inflation under recent collective bargaining, fuel cost spikes before surcharge pass-through, or higher purchased services and materials) or a shift in revenue mix toward lower-margin freight. Importantly, operating margin held relatively steady at 40.9% despite the gross margin decline, implying that operating expenses were curtailed to offset the COGS pressure, or that the data classification between COGS and opex shifted between periods. Compared to peers, UNP's 40.9% gross margin in Q3 remains above CSX (33.2%) and NSC (42.4%), but the trend deviation from its own historical range is the key concern for forward margin estimates.
Operating Leverage Evident as Revenue Scales
Operating income grew from $2.4B in 2026Q1 to $2.9B in 2026Q3—a 20.8% sequential increase on just 16.1% sequential revenue growth—demonstrating that UNP's high fixed-cost rail network is translating incremental volume into above-average operating income gains, consistent with strong operating leverage characteristics.
The data illustrates the classic fixed-cost leverage profile of Class I railroads. Operating margins have held in the 39.2%–41.3% range throughout the ten-quarter period, suggesting that incremental revenue is flowing through at roughly similar or improving rates to operating income. The 2026Q3 operating margin of 40.9% matches the 2025Q3 level of 40.8% despite the gross margin compression, implying that opex discipline (or reclassification) partially offset the COGS deterioration. With SG&A data unavailable for several quarters (reported as $0 in Q3 2025, Q4 2025, and Q3 2024), a precise SG&A-to-revenue efficiency analysis is constrained; however, the consistently high operating margin relative to Eastern peers (CSX at 32.1%, NSC at 32.9%) confirms UNP's structural cost advantage and network density.
COGS Spike Drives Margin Deterioration in Q3
2026Q3 COGS of $4.3B represented a 30.3% year-over-year increase, far outpacing the 15.3% revenue growth rate, while reported SG&A was zero—suggesting a potential reclassification of expenses into COGS that makes period-over-period cost comparisons unreliable without further disclosure reconciliation.
The Q3 2026 cost structure appears to have shifted materially: COGS surged to $4.3B from $3.3B in the prior-year quarter, an increase of $1.0B. Concurrently, SG&A was reported as $0 in Q3 2026, versus $362M in Q2 2026 and $364M in Q1 2026. This pattern suggests either a significant expense reclassification (moving SG&A into COGS or vice versa) or data availability gaps that preclude reliable trend analysis of the cost base. Analysts should focus on the combined COGS-plus-SG&A total: in Q3 2026 this equals $4.3B on $7.2B revenue (59.7% of revenue), versus Q2 2026 at $4.06B on $6.9B (58.8%), indicating a modest ~100bps deterioration in total cost-to-revenue ratio. The persistence of zero or negative SG&A figures across multiple quarters (including -$13M in 2025Q1) suggests the accounting presentation is non-standard and requires careful normalization before drawing firm conclusions about expense discipline.
Revenue Surge May Mask Underlying Margin Erosion
The strongest short thesis centers on the Q3 2026 divergence: a headline 15.3% revenue growth and 15.9% EPS growth obscure a 460bps gross margin decline to 40.9%, raising questions about whether growth is being purchased through price concessions or adverse mix shift that could prove structurally damaging.
The bull case around accelerating revenue growth faces a credible challenge from the margin data. A railroad generating 15% top-line growth while gross margin compresses by nearly 500bps suggests either unsustainable pricing or an unfavorable freight mix—potentially intermodal volume growth displacing higher-margin bulk and industrial traffic. If the Premium segment is driving this growth, it faces structural price competition from trucking, meaning the incremental revenue may carry permanently lower margins. Additionally, the SG&A data inconsistencies across quarters make it difficult to verify whether reported operating margin stability reflects genuine cost control or accounting presentation shifts. Finally, the Q2 2026 EPS of $3.36 missed consensus of $3.45 despite management raising guidance—a pattern that, if repeated in Q3, would suggest consensus estimates may be anchored to optimistic volume assumptions that fail to account for the cost pressures already visible in the gross margin trajectory. This combination of accelerating growth alongside deteriorating unit economics is precisely the pattern that often precedes a re-rating in capital-intensive industrial names.