Norfolk Southern third-quarter revenue reaches record $3.5 billion as earnings rise

Norfolk Southern Corporation (NSC) said Thursday that its third-quarter 2026 railway operating revenues reached a quarterly record of $3.5 billion, according to a press release furnished in a regulatory filing.

Revenue rose $423 million, or 14%, from the third quarter of 2025.

Volume increased 3% from a year earlier, and higher fuel surcharges accounted for eight points of the revenue growth.

Here's how the company did:

• Revenue: $3.5 billion vs. $3.1 billion a year earlier
• Diluted earnings per share: $3.37 vs. $3.16 a year earlier
• Adjusted diluted earnings per share: $3.62 vs. $3.30 a year earlier
• Operating ratio: 67.4% vs. 64.6% a year earlier

Income from railway operations was $1.2 billion, up $52 million, or 5%, from a year earlier.

Excluding merger-related expenses and the effects of the Eastern Ohio incident, adjusted income from railway operations was $1.2 billion, up $82 million, or 7%.

The adjusted figures for 2025 also exclude restructuring and other charges, the filing said.

The Eastern Ohio incident refers to a February 3, 2023, derailment in East Palestine, Ohio, involving a train the company operated.

The incident cost $28 million in the quarter, compared with $13 million of net expenses a year earlier.

Merger-related expenses were $42 million, up from $15 million a year earlier.

The company said those costs primarily covered employee retention agreements, third-party advisor fees and legal fees.

Restructuring and other charges were zero in the quarter, compared with $12 million in the third quarter of 2025.

Fuel expense rose to $420 million from $237 million a year earlier.

Here's how the company's main freight categories did during the quarter:

• Merchandise revenue: $2,188 million vs. $1,969 million a year earlier
• Intermodal revenue: $919 million vs. $759 million a year earlier
• Coal revenue: $419 million vs. $375 million a year earlier

“Norfolk Southern delivered another quarter of solid execution, with record revenues, and strong earnings growth aided by continued productivity gains across the network,” said President and Chief Executive Officer Mark George.

George said the company remained focused on “disciplined cost control despite rising fuel costs.”

“Demand for rail service increased during the quarter, as a tighter trucking market highlighted rail’s competitive advantages and underscored the opportunity for a more efficient, capacity-enhanced freight network,” George said.

The adjusted operating ratio was 65.4%, 210 basis points higher than in the third quarter of 2025.

The filing does not include new financial guidance or an updated outlook for 2026.

For the first nine months of 2026, revenue was $9.99 billion, compared with $9.21 billion a year earlier.

Net income for the nine months was $2.04 billion, versus $2.23 billion, and diluted earnings per share were $9.06, compared with $9.88.

The company did not repurchase any shares in the first nine months of 2026.

In the same period of 2025, it repurchased and retired 2.2 million shares at a cost of $533 million, including accrued excise taxes.

Property additions, or capital spending, were $1.41 billion in the first nine months, compared with $1.48 billion a year earlier.

The company's press release and quarterly financial data are also available on its website, www.norfolksouthern.com.