Investing.com -- Union Pacific Corporation (NYSE: UNP) reported first-quarter earnings on Thursday, topping consensus expectations.

Adjusted earnings per share of $2.93 surpassed analyst estimates of $2.86, as the railroad operator posted record operating revenue and improved efficiency metrics.

The company's revenue reached $6.22 billion, slightly above the consensus estimate of $6.21 billion and up 3% from the prior year. Freight revenue increased 4% YoY, driven by core pricing gains, fuel surcharge revenue, and business mix, partially offset by 1% fewer carloads. Adjusted operating ratio improved 80 basis points to 59.9%. The stock rose 1.4% following the results.

"Our safety, service, and operating momentum continued in the first quarter as we further challenged 'what's possible' from our great railroad," said Jim Vena, Union Pacific Chief Executive Officer. "We grew reported net income 5%, increased earnings per share 6%, and improved our operating ratio."

Union Pacific reported net income of $1.7 billion for the quarter, compared to $1.6 billion in the first quarter of 2025. Results included merger costs of $36 million, or $0.06 per diluted share.

The company achieved operational improvements across key metrics, with freight car velocity increasing 9% to 235 daily miles per car and average terminal dwell improving 11% to 19.7 hours. Locomotive productivity rose 6% while fuel consumption rate improved 4%.

Union Pacific affirmed its 2026 outlook, projecting mid-single digit reported earnings per share growth and continued operating ratio improvement. The company maintained its capital plan of $3.3 billion and reiterated its commitment to consistent annual dividend increases. Management expects pricing dollars to exceed inflation dollars while meeting customer demand amid a muted economic forecast.