Union Pacific Corporation (UNP) AI Stock Analysis

Union Pacific Corporation, via Union Pacific Railroad Company, operates freight rail transportation across the United States. Founded in 1862 and headquartered in Omaha, Nebraska, its 32,452 route miles link Pacific and Gulf Coast ports with Midwest and Eastern gateways. It moves agricultural commodities like grain, fertilizer, and food products, alongside coal, construction materials, industrial chemicals, plastics, metals, and forest products. The company also ships finished automobiles, automotive parts, and intermodal freight containers.

Between FY2021 and FY2025, annual revenue increased from $21.80B to $24.51B, reflecting a 5-year CAGR of 4.6% from FY2020 through FY2025. Annual net income moved from $6.52B in FY2021 to $7.14B in FY2025, with EPS climbing from $9.96 to $11.67 over the same span. In FY2025, operating margin reached 40.1% and net margin was 29.1%. For the latest quarter ended June 30, 2026, revenue increased 11.5% year-over-year, while quarterly earnings expanded by 6.6%. Over the trailing twelve months, revenue totaled $25.41B with a profit margin of 28.8%.

As of June 30, 2026, Union Pacific held $2.11B in cash and short-term investments against $31.17B in total debt, creating net debt of $29.05B. Shareholders' equity was $20.67B, resulting in a debt-to-equity ratio of 1.51 and a current ratio of 0.99. In FY2025, the company produced $9.29B in operating cash flow and $5.50B in free cash flow after funding $3.79B in capital expenditures. It allocated $3.24B to dividend payments and $2.68B to share repurchases, reducing its share count by 7.5% over five years.

UNP trades at a trailing P/E of 23.4x and a forward P/E of 19.3x, both below the median of its S&P 500 Industrials peers of 28.5x and 20.7x, respectively. Its enterprise value to EBITDA sits at 14.4x, compared to the peer median of 17.7x, while its price-to-sales of 6.8x is higher than the peer median of 3.1x. Over the past year, UNP returned 31.7%, outperforming the S&P 500 (SPY) return of 16.8%. Over five years, UNP gained 43.7% versus 83.0% for the index.

Union Pacific pays a quarterly dividend with an annualized forward rate of $5.68, yielding 1.97%. The payout ratio is 45.3%, and the company has maintained consecutive payments for 47 years. Dividends grew at a 5-year annualized rate of 7.0%, and the last ex-dividend date occurred on August 31, 2026.

Consensus ratings include 15 Strong Buy, 3 Buy, 6 Hold, and 1 Sell recommendations. The mean price target is $327.62, representing a 13.3% premium over the last close of $289.04. For the fiscal year ending December 31, 2026, analysts estimate EPS of $13.09 on revenue of $27.11B. Union Pacific beat EPS estimates in 3 of the last 4 quarters, with its next earnings report scheduled for October 22, 2026.

This page is an AI-written research summary of Union Pacific Corporation (UNP). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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