← Who reports today · Industrials
NSC · Q2 2026
Archived report (Q2 2026). Latest deep dive →
The quarter in brief
A record-revenue, weaker-profit quarter — revenue +11% to an all-time $3,465M (6 of 11 points from fuel surcharges), but operating income fell 4% to $1,124M as fuel jumped 85% and $51M of Union Pacific merger costs landed; operating ratio worsened to 67.6% from 62.2%.
Net Income
$734M
down 4.4% y/y
Railway Operating Revenues
$3,465M
up 11.4% y/y
Income from Railway Operations
$1,124M
down 4.3% y/y
All figures in $M.
| Line item | Amount and change |
|---|---|
| Merchandise | $2,133 · +8.2% |
| Intermodal | $908 · +22.2% |
| Coal | $424 · +7.3% |
| Railway Operating Revenues | $3,465 · +11.4% · all-time quarterly record |
| Compensation & Benefits | $744 · +7.5% |
| Purchased Services & Rents | $550 · +5.8% |
| Fuel | $405 · +84.9% |
| Depreciation | $358 · +3.5% |
| Materials & Other | $212 · +8.7% |
| One-offs ≈ | $72 · merger $51 · Ohio $15 · restr. $6 |
| Income from Railway Operations | $1,124 · −4.3% · operating ratio 67.6% |
| Other Income, Net | $32 |
| Interest Expense | $197 · −2.0% |
| Pretax Income | $959 · −3.9% |
| Income Taxes | $225 · −2.2% · 23.5% rate |
| Net Income | $734 · −4.4% · 21.2% margin · EPS $3.26 |
Verdict: a record-revenue, weaker-profit quarter — revenue +11% to an all-time $3,465M (6 of 11 points from fuel surcharges), but operating income fell 4% to $1,124M as fuel jumped 85% and $51M of Union Pacific merger costs landed; operating ratio worsened to 67.6% from 62.2%.
Adjusted (ex merger, restructuring, Eastern Ohio): operating income +5%, EPS $3.52 (+7%). Diluted shares 225M. Cash $1.1B.
Source and notation
≈ marks grouped one-offs. Source: Norfolk Southern press release 8-K EX-99.2 (SEC EDGAR).
Open as an image: NSC, Q2 2026 (PNG) ↗ · for sharing and presentations · free to reuse, CC BY 4.0
Cite / embed this chart
Free to use in articles, research and social posts with credit to Who Reports Today and a link — licensed under CC BY 4.0 (terms).
Chart: “NSC Q2 2026: where the revenue went” by Who Reports Today, https://whoreportstoday.com/t/nsc/q2-2026. Licensed under CC BY 4.0.
<figure> <a href="https://whoreportstoday.com/t/nsc/q2-2026"><img src="https://whoreportstoday.com/t/nsc/q2-2026/sankey.png" alt="NSC Q2 2026: where the revenue went" loading="lazy" style="max-width:100%;height:auto"></a> <figcaption>Source: <a href="https://whoreportstoday.com/t/nsc/q2-2026">Who Reports Today</a>, licensed under <a href="https://creativecommons.org/licenses/by/4.0/">CC BY 4.0</a></figcaption> </figure>
https://whoreportstoday.com/t/nsc/q2-2026/sankey.png
<a href="https://whoreportstoday.com/t/nsc/q2-2026">NSC Q2 2026 earnings chart (Who Reports Today)</a>
This is an archived report: the image at this link won’t change. If you change the chart (crop, translate), say so in the credit. Company logos and trademarks are not covered by the license.
- Fuel expense jumped 85% ($405M vs $219M) — the single biggest cost move; fuel surcharges added ~6 of the 11 revenue points, so much of the record top line is a pass-through.
- $51M of merger-related expenses is a brand-new line — costs of the announced Union Pacific combination; management's adjusted operating income (+5%) strips it out.
- The Eastern Ohio incident swung the base: +$15M cost this quarter vs a −$47M recovery a year ago — a $62M year-over-year drag that isn't operational.
- Intermodal is the volume driver: +22% revenue on a 4% total volume increase; merchandise +8%, coal +7%.
- Interest expense ($197M) still consumes 18% of operating income — the railroad's structural leverage.
What distorts the picture in this report and what to watch beyond the headlines.
NSC — Norfolk Southern Corporation is a freight transportation company operating a railroad network across the eastern United States.
It provides rail, intermodal, and logistics services for a wide range of industries.
Heads-up
- profit is growing slower than revenue: −4% vs +11% y/y in Q2 2026
Net income −4% y/y against revenue +11% y/y. In the report's figures: costs grew faster than revenue: fuel +85% y/y. Based on the Q2 2026 report.
Company filings on SEC EDGAR ↗More reports: ODFL · Q3 2026 · OTIS · Q2 2026 · PAYX · Q1 FY2027 · PCAR · Q3 2026 · PH · Q4 FY2026 · PNR · Q3 2026 · PWR · Q2 2026 · ROK · Q3 FY2026 · ROL · Q2 2026 · RSG · Q2 2026 · all reports