Norfolk Southern Logs Higher 3Q Profit, Revenue as Demand Improves

By Connor Hart

Norfolk Southern reported higher profit and revenue in the latest quarter, during which demand for rail service increased as surging fuel costs hurt the trucking industry.

The railroad company on Thursday said income from railway operations rose 4.7% to $1.15 billion in the third quarter. Earnings came in at $3.37 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 $3.62 a share. Analysts polled by FactSet expected adjusted earnings of $3.46 a share.

Revenue climbed 14% to $3.5 billion in the quarter, roughly in line with Wall Street models.

Chief Executive Mark George said demand for rail service increased throughout the quarter, as a tighter trucking market highlighted the competitiveness of rail. "We remain focused on investing in a stronger, more resilient rail network that can support growth we see on the horizon," he added.

Norfolk Southern last year 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.

The companies this summer provided additional information to the Surface Transportation Board, adding commitments to ensure the deal would provide faster, more reliable service as promised. The deal has faced resistance from federal regulators, customers and rivals who argue it would drive up freight prices and dampen competition.

Union Pacific and Norfolk Southern have previously said they expect the deal to close in mid-2027, as STB continues its review of their merger application.

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

(END) Dow Jones Newswires

October 22, 2026 08:31 ET (12:31 GMT)