# Union Pacific Corp. (UNP)

> Union Pacific moves freight by rail across the western United States and connects customers to ports and railways in Canada and Mexico.

- Exchange: New York Stock Exchange (NYSE) · Sector: Industrials · Industry: Railroads
- Headquarters: Omaha, Nebraska
- Founded: 1969 (incorporated)
- Employees: 28,716 (average for the six months ended June 30, 2026)
- SEC CIK: 0000100885 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000100885))
- Full page: https://inspectstocks.com/stocks/unp
- Data as of: price 2026-09-29; newest filing used 2026-07-23; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $25.4B | $24.8B |
| Revenue growing recently | passed | $25.4B | $24.5B |
| Free cash flow positive | passed | $6.5B |  |
| Free cash flow growing overall | passed | $6.5B | $5.5B |
| Free cash flow growing recently | passed | $6.5B | $5.5B |

Business quality (the + / − mark): 6 of 6 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 28.8% |  |
| Healthy profit margin | passed | 28.8% |  |
| Strong operating margin | passed | 40.0% |  |
| Good return on equity | passed | 39.7% |  |
| Debt under control | passed | 1.78 |  |
| Turns sales into cash | passed | 25.6% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $25.4B |
| Net income, trailing twelve months | $7.3B |
| Free cash flow, trailing twelve months | $6.5B |
| Net margin | 28.8% |
| Operating margin | 40.0% |
| Return on equity | 39.7% |
| Debt to equity | 1.78 |
| Diluted EPS, trailing twelve months | $12.35 |
| Share price | $274.12 |
| Market value | $162.8B |
| Price / earnings | 22.2x |
| Price / sales | 6.4x |

## What the business does

Union Pacific Corporation's main business is Union Pacific Railroad, which carries freight between businesses, ports, and other railways across the western two-thirds of the United States. Its freight includes agricultural goods, coal, construction materials, chemicals, cars, and merchandise in containers; some shipments continue on other railways to reach their destinations. In the second quarter of 2026, average freight-car velocity was 231 miles per day (Q2 2026, high), and average terminal dwell—the time rail cars spend at terminals—was 19.7 hours (Q2 2026, high).

### How it makes money

- **Cargo and freight** (94.7% (year ended December 31, 2025)) — The railroad earns freight charges for moving customers' goods from origin to destination. Charges vary with the number of carloads, shipping prices, the type of freight, and fuel surcharges. Within freight revenue, Bulk accounted for 33%, Industrial 37%, and Premium 30% (FY 2025, high); these percentages are shares of freight revenue.
- **Product and service other** (5.3% (year ended December 31, 2025)) — This category includes other services, such as subsidiary logistics work and accessorial services. Logistics subsidiaries can earn revenue by arranging shipments; accessorial charges apply when specified additional services are provided.

### Products

- **Bulk freight** — Rail transport for grain and grain products, fertilizer, food and refrigerated goods, coal, and renewable-fuel-related shipments.
- **Industrial freight** — Rail transport for construction materials, chemicals, plastics, metals, forest products, petroleum, liquefied petroleum gas, soda ash, sand, and other industrial goods.
- **Premium freight** — Rail transport for finished automobiles and auto parts, plus merchandise in domestic and international shipping containers and trailers.
- **Logistics and additional services** — Subsidiaries arrange intermodal and transload shipments, while accessorial services include additional services connected with freight shipments.

### Customers

- Grain growers, grain processors, animal feeders, and agricultural exporters that arrange rail shipments to domestic buyers, ports, or connecting railways.
- Fertilizer makers and agricultural users that ship fertilizer by rail.
- Power companies and industrial facilities that receive coal by rail.
- Construction, manufacturing, chemical, plastics, metals, and forest-products businesses that ship materials or finished goods by rail.
- Automakers, auto-parts businesses, and vehicle distributors that use rail transport and vehicle distribution facilities.
- Intermodal marketing companies and truckload carriers that arrange container or trailer shipments, including for importers and exporters.

### Competitors

- BNSF Railway (BRK.B) — Competes as a western United States freight railroad for shippers and freight routes; BNSF is a Berkshire Hathaway subsidiary.
- Canadian National Railway (CNI) — Competes for cross-border and North American freight. The companies also described a merger-related agreement concerning access and gateways.
- Canadian Pacific Kansas City (CP) — Competes for freight moving between Canada, the United States, and Mexico; the call specifically discussed competition for Mexico-bound traffic.
- Norfolk Southern (NSC) — An eastern United States freight railroad and proposed merger partner; the merger was pending in the documents.
- CSX Corporation (CSX) — Competes as an eastern United States freight railroad for shippers and freight routes.

### What it depends on

- Freight service depends on maintaining tracks, terminals, locomotives, and freight cars across a large rail network, and on connecting railways to carry some shipments beyond Union Pacific's routes.
- The company identifies locomotives and rail as key supplies; shortages or delays in obtaining them could affect operations.
- Fuel prices affect operating costs, while fuel surcharges affect freight revenue.
- A large share of the workforce is represented by rail unions, and labor agreements and negotiations affect staffing and operating costs.
- Operations and rail service are subject to federal and state safety, transportation, hazardous-materials, and environmental rules.

### What could go wrong

- The proposed acquisition of Norfolk Southern depends on regulatory approval and other conditions. Approval could be delayed, denied, or granted with conditions; combining the businesses could also create integration and operating challenges.
- Freight demand and network capacity vary with economic conditions, customer production, commodity markets, fuel prices, and international trade. The filing notes that a significant portion of revenue involves commodities moving to or from international markets.
- Weather and other natural events can interrupt rail service or damage infrastructure, while accidents involving hazardous materials can cause harm, service disruption, and related costs.

## More on this company

- [Overview](https://inspectstocks.com/stocks/unp)
- [Financial statements](https://inspectstocks.com/stocks/unp/financials)
- [Competitors](https://inspectstocks.com/stocks/unp/peers)
- [Earnings](https://inspectstocks.com/stocks/unp/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.