Norfolk Southern Reports Record Q3 2026 Revenue and Double-Digit Adjusted EPS Growth

Norfolk Southern Corp (NYSE: NSC) Q3 2026 Earnings Summary

Norfolk Southern Corporation filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 7.01 (Regulation FD Disclosure) to report financial results for the third quarter ended September 30, 2026.

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Key Financial Highlights

• Railway Operating Revenues: Reached a record $3.5 billion, increasing $423 million (14%) compared to Q3 2025.
  • Overall freight volume rose 3% year-over-year.
  • Higher fuel surcharges accounted for 8 percentage points of the revenue growth.
• Income from Railway Operations:
  • GAAP: $1,150 million ($1.15 billion), up 5% from Q3 2025.
  • Adjusted: $1,220 million ($1.22 billion), up 7% ($82 million) year-over-year, excluding $70 million in merger-related expenses and Eastern Ohio incident costs.
• Operating Ratio (OR):
  • GAAP OR: 67.4% (up from 64.6% in Q3 2025).
  • Adjusted OR: 65.4% (up 210 basis points compared to adjusted Q3 2025).
• Diluted Earnings Per Share (EPS):
  • GAAP EPS: $3.37, up $0.21 (7%) year-over-year.
  • Adjusted EPS: $3.62, up $0.32 (10%) year-over-year.

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Operational & Management Commentary

• CEO Remarks: President and CEO Mark George noted that solid execution, continued network productivity gains, and a tightening trucking market provided competitive tailwinds for rail volumes and revenue.
• Cost Pressures: Operating ratio expanded year-over-year primarily driven by higher fuel expenses and ongoing merger/incident-related expenditures.
• Adjustments: Non-GAAP measures excluded costs related to the Eastern Ohio incident and merger-related expenses totaling $70 million pre-tax in Q3 2026.