Norfolk Southern Posts Higher 2Q Revenue as Demand Trends Improve

By Connor Hart

Norfolk Southern logged higher revenue in the second quarter, as demand trends began to improve.

The railroad company on Thursday said income from railway operations fell 4.3%, to $1.12 billion. Quarterly earnings came in at $3.26 a share.

Stripping out one-time costs, such as expenses related to its tie-up with Union Pacific and continued costs from its freight-train derailment in Ohio, earnings were $3.52 a share. Analysts polled by FactSet expected adjusted earnings of $3.31 a share.

Revenue rose 11% to $3.5 billion, compared with Wall Street models for $3.37 billion.

Chief Executive Mark George said the quarterly results were better than what the company initially forecast, thanks to improving demand across key markets. "Our team adapted to a dynamic operating environment with focus and an unwavering commitment to safety," he added.

Norfolk Southern last July agreed to sell itself to fellow railroad company Union Pacific for $71.5 billion. The deal still must overcome regulatory review that, if successful, would create the first transcontinental freight railroad in the U.S.

Union Pacific reached a deal with Canadian National Railway on Wednesday, giving the Montreal railroad further access in the Midwest in exchange for CN ending its opposition to the blockbuster merger.

Union Pacific's agreement with CN came as its tie-up with Norfolk Southern faces hurdles. The Surface Transportation Board paused its review of the deal after the federal regulator said in May it needed more information to evaluate the two railroads' revised application for the merger.

The deal has also faced resistance from customers and rivals who argue that it would drive up freight prices and dampen competition.

Shares were up 1.3% to $335.07 in premarket trading.

Write to Connor Hart at connor.hart@wsj.com

(END) Dow Jones Newswires

July 23, 2026 08:53 ET (12:53 GMT)