Union Pacific Raises 2026 Capital Plan to $3.5 Billion, Maintains EPS Outlook

Union Pacific lifted planned 2026 capital spending by $200 million to $3.5 billion while maintaining its outlook for high-single-digit growth in reported earnings per share.

The company’s 2026 plan was previously set at $3.3 billion in July. Planned investments cover growth, network safety and resilience, operating efficiency, infrastructure hardening and replacement, locomotive modernization, and freight cars.

For the quarter ended Sept. 30, operating revenue was $7.197 billion, compared with $6.244 billion a year earlier. Net income rose to $2.076 billion from $1.788 billion, and diluted earnings per share increased to $3.49 from $3.01.

Adjusted diluted EPS climbed 15% to $3.53 from $3.08. Revenue carloads grew 6% during the quarter. The full-year forecast calls for high-single-digit growth in reported EPS, without specifying a numerical percentage range.

Chief Executive Jim Vena said Union Pacific was “efficiently handling six percent volume growth.” Higher fuel prices adversely affected the reported operating ratio by 140 basis points in the quarter. The company expects its core-business operating ratio to improve in 2026, while high fuel prices remain a challenge for the reported measure.

Union Pacific reported diluted EPS of $11.98 for 2025. Industrial park land sales in the fourth quarter contributed $0.30 per diluted share. The company’s 2026 outlook is for reported EPS, while the $3.53 quarterly figure is adjusted diluted EPS.