Union Pacific Corporation (UNP) spent $1.04 billion on fuel in the third quarter, up 69% from $616 million a year earlier, according to its third quarter release dated 22 October 2026 and filed with the SEC as an 8-K exhibit.

Fuel took 24.4% of operating expenses ($1.04 billion of $4.254 billion), up from 16.7% ($616 million of $3.695 billion) a year earlier, as calculated by Trend & Ticker.

Union Pacific paid an average of $4.21 a gallon, against $2.56 in the third quarter of 2025. The company said higher fuel prices hurt its operating ratio (operating expenses as a share of revenue, where lower is better) by 140 basis points (a basis point is one hundredth of a percentage point).

Intermodal boxes carried the volume gain

• Operating revenue rose 15% to $7.197 billion.
• Revenue carloads grew 6% to 2.293 million.
• Intermodal freight revenue climbed 27% to $1.517 billion on 11% more units.
• Freight revenue excluding fuel surcharge increased 6%.
• Diluted EPS rose 16% to $3.49, and adjusted EPS rose 15% to $3.53.

Bulk was the flat spot. Bulk carloads held at 529,000, although bulk freight revenue still rose 10% to $2.116 billion.

The reported operating ratio improved 10 basis points to 59.1%. On an adjusted basis, which strips out $22 million of acquisition costs tied to the Norfolk Southern deal, it rose 30 basis points to 58.8%.

Fewer workers, longer trains, weaker service scores

The railroad moved the extra freight with 1% fewer employees, an average of 28,540. Car miles per employee rose 5% to 1,219, and average train length grew 2% to 9,969 feet.

Service scores slipped. The intermodal service performance index fell to 92% from 98%, and the manifest index dropped to 93% from 100%.

"We executed at a consistently high level, enabling record financial results and further reinforcing our position as the industry leader," Chief Executive Jim Vena said in the release.

Buybacks shrink during the merger review

Union Pacific repurchased $26 million of stock in the first nine months of 2026, against $2.679 billion in the same period a year earlier, its cash flow statement shows. The quarterly dividend declared rose 3% to $1.42 a share.

The company affirmed its call for high single digit growth in reported 2026 EPS and set its capital plan at $3.5 billion. It describes the reported operating ratio as "challenged by high fuel prices."

Vena said the company looks forward to the next steps of the Surface Transportation Board's review of its planned purchase of Norfolk Southern Corporation (NSC). That review will run alongside a change in the finance chair, after the railroad said CFO Jennifer Hamann plans to retire.