Norfolk Southern (NYSE:NSC) Posts Quarterly Earnings Results, Beats Estimates By $0.20 EPS

Norfolk Southern (NYSE:NSC) issued its quarterly earnings data on Thursday. The railroad operator reported $3.52 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $3.32 by $0.20, Briefing.com reports. Norfolk Southern had a net margin of 21.91% and a return on equity of 18.30%. The business had revenue of $3.46 billion during the quarter, compared to analyst estimates of $3.38 billion. During the same quarter last year, the business earned $3.29 EPS. The firm’s quarterly revenue was up 12.5% on a year-over-year basis.

Here are the key takeaways from Norfolk Southern’s conference call:

• Norfolk Southern reported a strong second quarter with volume up 4%, record revenue before fuel, and adjusted EPS of $3.52, while net income and EPS both grew 7% year over year.
• The company raised its 2026 operating expense outlook to $8.8 billion-$8.9 billion from $8.2 billion-$8.4 billion, citing a $400 million-$500 million increase from higher fuel costs and ongoing inflation.
• Management said network performance is improving after disruptions, with on-time originations up 20% in the last month, terminal dwell improving, and train velocity rising as the railroad gets back on plan.
• Commercial momentum remained solid, led by Intermodal, merchandise, and coal; Intermodal volumes rose 5% and management expects favorable truck market conditions and high fuel prices to support pricing and conversion opportunities.
• Norfolk Southern reiterated at least $150 million of cost takeout in 2026 and said industrial development activity is accelerating, with its project pipeline nearly doubling versus last year and supporting longer-term volume growth.

Norfolk Southern Trading Up 5.0%

NYSE NSC traded up $16.63 during trading hours on Thursday, hitting $347.57. 1,378,835 shares of the company’s stock were exchanged, compared to its average volume of 1,220,803. The firm has a market cap of $78.06 billion, a price-to-earnings ratio of 29.32, a PEG ratio of 6.06 and a beta of 1.27. The stock has a 50-day simple moving average of $316.07 and a 200 day simple moving average of $305.42. The company has a current ratio of 0.91, a quick ratio of 0.81 and a debt-to-equity ratio of 1.04. Norfolk Southern has a 1-year low of $268.23 and a 1-year high of $358.60.

Norfolk Southern Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Thursday, August 20th. Investors of record on Friday, August 7th will be given a dividend of $1.35 per share. The ex-dividend date is Friday, August 7th. This represents a $5.40 annualized dividend and a dividend yield of 1.6%. Norfolk Southern’s dividend payout ratio is presently 45.49%.

Hedge Funds Weigh In On Norfolk Southern

A number of institutional investors and hedge funds have recently modified their holdings of NSC. Compound Planning Inc. raised its holdings in shares of Norfolk Southern by 11.5% during the fourth quarter. Compound Planning Inc. now owns 2,888 shares of the railroad operator’s stock valued at $834,000 after purchasing an additional 299 shares during the period. Corient Private Wealth LLC grew its stake in shares of Norfolk Southern by 291.1% in the 4th quarter. Corient Private Wealth LLC now owns 340,653 shares of the railroad operator’s stock valued at $98,353,000 after buying an additional 253,547 shares during the period. CrossGen Wealth LLC bought a new stake in Norfolk Southern in the 4th quarter valued at about $43,000. Strive Financial Group LLC acquired a new position in Norfolk Southern during the 4th quarter worth approximately $822,000. Finally, Ameriflex Group Inc. raised its stake in Norfolk Southern by 244.1% during the 4th quarter. Ameriflex Group Inc. now owns 351 shares of the railroad operator’s stock worth $101,000 after buying an additional 249 shares during the period. 75.10% of the stock is currently owned by institutional investors.

Analyst Ratings Changes

Several equities analysts have recently issued reports on NSC shares. BMO Capital Markets raised their price target on shares of Norfolk Southern from $305.00 to $310.00 and gave the company a “market perform” rating in a research note on Monday, April 27th. Robert W. Baird raised their target price on Norfolk Southern from $330.00 to $360.00 and gave the stock a “neutral” rating in a research report on Friday, July 10th. UBS Group set a $327.00 target price on Norfolk Southern in a report on Thursday, May 7th. TD Cowen increased their price target on Norfolk Southern from $313.00 to $337.00 and gave the company a “buy” rating in a research note on Monday, April 27th. Finally, Citigroup lifted their price objective on Norfolk Southern from $335.00 to $351.00 and gave the stock a “neutral” rating in a research note on Thursday, July 9th. Six equities research analysts have rated the stock with a Buy rating and seventeen have issued a Hold rating to the company’s stock. According to data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $329.35.

Norfolk Southern News Roundup

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Norfolk Southern reported Q2 earnings of $3.52 per share, beating analyst estimates and improving from $3.29 a year ago, which signals continued operating strength. Norfolk Southern (NSC) Q2 Earnings and Revenues Top Estimates
• Positive Sentiment: Revenue also topped estimates at about $3.46 billion to $3.5 billion, with sales up 12.5% year over year, and management highlighted record quarterly revenue. Norfolk Southern rides freight demand, fuel surcharges to quarterly profit beat
• Positive Sentiment: Reuters reported that stronger freight demand and higher fuel surcharges helped offset fuel-cost pressure, reinforcing the view that pricing and volume trends are improving. Norfolk Southern rides freight demand, fuel surcharges to quarterly profit beat
• Neutral Sentiment: The company also announced a quarterly dividend of $1.35 per share, which supports shareholder returns but is not likely the main driver of today’s stock move. Norfolk Southern Declares Quarterly Dividend
• Negative Sentiment: Some reports noted lower profitability despite the revenue record, and one-time costs tied to the Union Pacific tie-up and Ohio derailment still weighed on results. Norfolk Southern Posts Record Revenue but Lower Profitability

Norfolk Southern Company Profile

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.