Core Viewpoint - Union Pacific Corporation (UNP) is a major freight rail operator in North America, with a market cap of $149.8 billion, and has faced mixed performance in the stock market over the past year and into 2026 [1][2]. Financial Performance - In fiscal 2025 fourth-quarter earnings, Union Pacific reported operating revenue of approximately $6.1 billion, a decrease of 1% year-over-year, which was slightly below consensus forecasts due to softer freight volumes [4]. - The adjusted EPS for the fourth quarter was $2.86, which was marginally under the expected figure [4]. - For the current year ending in December, analysts project an adjusted EPS of $12.49, reflecting a year-over-year increase of 7.1% [5]. Stock Performance - Over the past year, UNP stock prices increased by 5.1%, underperforming the S&P 500 Index, which gained 15.6% [2]. - In 2026, UNP stock surged by 10%, outperforming the S&P 500's rise of 1.7% [2]. - UNP has also underperformed compared to the State Street Industrial Select Sector SPDR Fund, which returned 26.5% over the past 52 weeks [3]. Analyst Ratings - Among 24 analysts covering UNP, the consensus rating is a "Moderate Buy," consisting of 14 "Strong Buys," one "Moderate Buy," and nine "Holds" [5]. - The analyst sentiment has shifted to a more bearish outlook compared to two months ago, when 16 analysts recommended a "Strong Buy" [7].

Core Insights - Berkshire Hathaway (BRK.B) reported better-than-expected third-quarter 2025 operating earnings, with a 33.8% year-over-year increase to $6.26 per share, surpassing the Zacks Consensus Estimate by 33.2% [1][8] - Total operating earnings reached $13.5 billion, reflecting a 3.4% year-over-year growth, driven by higher earnings in insurance underwriting, BNSF, and Manufacturing, service, and retailing [1] Revenue Performance - Revenues increased by 2.2% year over year to $92.5 billion, supported by growth in Insurance and Other, as well as Railroad, Utilities, and Energy segments, although it slightly missed the consensus estimate by 0.1% [2][8] - The Insurance and Other segment saw revenues rise by 2.4% year over year to $81.7 billion, attributed to higher premiums and service revenues [3] - Railroad, Utilities, and Energy operating revenues decreased by 1.5% year over year to $13.1 billion, primarily due to lower earnings at BHE [4] - Manufacturing, Service, and Retailing total revenues increased by 2.4% year over year to $54.7 billion, with earnings rising by 8.2% to $3.6 billion [5] Cost and Expense Management - Costs and expenses decreased by 2.6% year over year to $79.1 billion, mainly due to a decline in insurance losses and lower underwriting and administrative expenses [2][8] Financial Position - As of September 30, 2025, consolidated shareholders' equity was $700.4 billion, up 7.5% from December 31, 2024 [6] - Cash and cash equivalents increased by 62.7% to $72.2 billion compared to the end of 2024 [6] - Cash flow from operating activities totaled $34.8 billion in the first nine months of 2025, marking a 33.9% increase from the previous year [6]