Norfolk Southern Posts Record $3.5 Billion Revenue

Norfolk Southern posted record quarterly revenue of $3.5 billion in the second quarter of 2026 as freight volume rose, although reported railway operating income declined year over year.

Record revenue came with higher costs

The railroad’s official release⁠ said revenue increased by $355 million, or 11%, from the second quarter of 2025. A 4% increase in volume supported the result, while higher fuel surcharges contributed six percentage points of revenue growth.

The operating ratio rose to 67.6% from 62.2%. This metric compares railway operating expenses with railway operating revenue. At the same time, operating income fell $51 million, or 4%, to $1.124 billion, while diluted earnings per share declined $0.15 to $3.26.

Detailed quarterly financial data filed with the SEC⁠ show operating revenue of $2.133 billion from merchandise, $908 million from intermodal traffic, and $424 million from coal. Fuel expense increased to $405 million from $219 million.

The company also recorded $51 million of merger-related costs and $15 million of expenses associated with the Eastern Ohio incident. The prior-year quarter included $47 million in net recoveries from that incident.

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Adjusted results moved in the opposite direction

After excluding merger-related expenses, restructuring charges, and the Eastern Ohio incident, adjusted operating income reached $1.196 billion, 5% above the second quarter of 2025. Adjusted diluted earnings per share increased 7% to $3.52.

The adjusted operating ratio was 65.5%, 210 basis points higher than the prior-year adjusted result. Norfolk Southern said fuel expenses and related surcharge revenue accounted for 110 basis points of year-over-year pressure on the ratio.

The company describes these adjusted non-GAAP measures as supplemental rather than replacements for results prepared under generally accepted accounting principles.

2026 expense guidance rises

Norfolk Southern told investors in its SEC filing⁠ that it raised adjusted operating expense guidance for 2026 to $8.8–$8.9 billion to reflect estimated additional fuel costs.

CEO Mark George said demand improved in key markets, while safety, service reliability, and disciplined execution remain priorities for the second half of the year.