Union Pacific vs Norfolk Southern: Which Side of the Megamerger Should You Own?

Union Pacific (NYSE: UNP) and Norfolk Southern (NYSE: NSC) beryllium connected other ends of the largest obstruction woody successful U.S. history: a stock-and-cash transaction valued astatine $320 per stock and $85 cardinal successful endeavor value. The Surface Transportation Board (STB) accepted the revised exertion connected May 28, 2026, past paused the reappraisal to petition much information. That backdrop reshapes however investors should work the companies' Q1 results.

The Western Network Compounded. The Eastern One Held the Line.

Union Pacific delivered adjusted EPS of $2.93 connected $6.22 cardinal successful revenue, with a 59.9% adjusted operating ratio. Bulk did the dense lifting: ember and renewables jumped 17%, atom roseate 11%, and fertilizer climbed 12%. Although, intermodal slipped 6%. CEO Jim Vena said the squad "further challenged what's imaginable from our large railroad," and the operating information backed him up, with terminal dwell of 19.7 hours hitting a record.

Norfolk Southern posted adjusted EPS of $2.65 connected fundamentally level gross of $3.00 billion. The eastbound bearer ran a overmuch heavier 68.7% adjusted operating ratio, and GAAP nett income fell to $547 cardinal arsenic a $185 cardinal Eastern Ohio betterment successful Q1 2025 turned into $10 cardinal successful nett expenses. CEO Mark George credited the squad for "operating with subject amid volatile volumes, terrible wintertime weather, and a rapidly shifting macroeconomic environment."

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Acquirer Discipline Versus Target Optionality

Norfolk Southern shares closed astatine $304.96, leaving astir a 5% dispersed to the $320 woody price. Union Pacific, astatine $262.64, has tally up 13.5% twelvemonth to date, adjacent aft a 3.9% driblet connected the STB pause. Both companies paused buybacks to sphere superior for the deal.