Union Pacific (UNP) Tops Q2 Earnings and Revenue Estimates

Core Viewpoint - Union Pacific reported quarterly earnings of $3.03 per share, exceeding the Zacks Consensus Estimate of $2.89 per share, and showing an increase from $2.74 per share a year ago, indicating a positive earnings surprise of +4.84% [1][2] Financial Performance - The company achieved revenues of $6.15 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.72% and showing growth from $6.01 billion year-over-year [2] - Over the last four quarters, Union Pacific has surpassed consensus EPS estimates two times and topped revenue estimates once [2] Stock Performance - Union Pacific shares have increased by approximately 1.3% since the beginning of the year, while the S&P 500 has gained 8.1%, indicating underperformance relative to the broader market [3] Future Outlook - The company's earnings outlook will be crucial for assessing future stock performance, with current consensus EPS estimates at $2.96 for the coming quarter and $11.57 for the current fiscal year [7] - The Zacks Rank for Union Pacific is currently 3 (Hold), suggesting that the shares are expected to perform in line with the market in the near future [6] Industry Context - The Transportation - Rail industry, to which Union Pacific belongs, is currently ranked in the top 14% of over 250 Zacks industries, indicating a favorable industry outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Union Pacific's stock performance [5]