Norfolk Southern (NSC)
NYSEIndustrialsRailroadsSnapshot 2026-09-04
$329.46+0.50%
Close 2026-09-04 · 1-day change
NYSEIndustrialsRailroadsSnapshot 2026-09-04
QuarterlyIQ Insights · NSC
How strong the business is — where it ranks within its sector on capital efficiency and cash generation, and how well management has been executing.
How this business ranks within industrials on a research-validated quality screen. As of 2026-09-04.
The screen ranks NSC against its sector on four durable signals: share dilution, return on capital, free-cash-flow yield, and FCF margin. Historically the highest-quality names tended toward better typical outcomes and fewer bad years over multi-year holds (strongest at three years, modest at one), and that pattern showed up even before the price moved. It characterizes business quality, not price direction.
Each leg is a sector-relative percentile (higher is better); 4 of 4 legs were available for this name. The composite is built from these four; the raw value follows each percentile for context.
A forward quality tilt, not a price prediction, and context for your own research rather than a recommendation. Not investment advice.
How management runs the business: capital, margins, balance sheet, and how reliably they guide and deliver.
Each factor is a parallel diagnostic with a clear read of what it shows and how names like it have historically fared. Never aggregated into a single score.
Operating income rose in 1 of the last 3 quarter-over-quarter moves. Historically, Industrials names rated neutral grew net income 51% of the time over the next year (vs 60% for the rest of the cohort, n=9249).
Not investment advice. Scores describe historical and current data; they are not forecasts of future returns. Consult a licensed advisor before making investment decisions.
A guidance track record builds as the company issues and delivers on guidance.
Priorities management has stated in recent disclosures, with status and evidence drawn from earnings calls, filings, and press releases.
Continue to drive productivity savings with cost-control and targeted initiatives to improve operating efficiency.
Stated as a priority in 5 of last 5 quarters. Management raised the 2025 productivity savings target from $175 million to approximately $200 million, citing strong cost-control and targeted initiatives. Actual productivity savings exceeded $215 million in 2025-Q4. The trajectory is delivering consistent productivity gains as planned.
“The progress we achieved reflects the dedication of our railroaders and the strength of our franchise.”
“Managed costs effectively and earned the continued trust of our customers.”
“Delivered outsized productivity savings in excess of $215 million.”
“Raising 2025 productivity target to ~$200 million from ~$175 million.”
“Raising expected productivity savings in 2025 to $175+ million as cost-control and targeted initiatives are yielding strong results.”
Focus on growing railway operating revenues through volume increases and managing fuel surcharge impacts.
Stated as a priority in 5 of last 5 quarters. Revenue grew from approximately $3.1 billion in 2025-Q2 to a record $3.5 billion in 2026-Q2, an 11% increase year-over-year. Management expects 2-3% revenue growth for full year 2025. The trajectory shows delivering revenue growth consistent with stated targets.
“Railway operating revenues of $3.5 billion were an all-time quarterly record, up 11% compared to second quarter 2025.”
Focus on managing operating expenses and improving operating ratio despite fuel cost headwinds and merger-related expenses.
Stated as a priority in 5 of last 5 quarters. Adjusted operating ratio increased from 63.4% in 2025-Q2 to 65.5% in 2026-Q2, reflecting a 210 basis point increase, partly due to higher fuel costs. Management updated 2026 adjusted operating expense guidance to $8.8-$8.9 billion to account for incremental fuel expense. The trajectory shows limited progress on operating ratio improvement due to cost headwinds.
Advance the announced merger transaction with Union Pacific to create a transcontinental railroad.
Stated as a priority in 2 of last 5 quarters. Management announced the merger agreement with Union Pacific in 2025-Q2, aiming to create a transcontinental railroad. No financial results yet reflect merger impact; progress is in early stages with ongoing regulatory and integration activities.
“Norfolk Southern and Union Pacific announced an agreement to combine in a stock and cash transaction.”
Pursue merger and acquisition activities with Union Pacific.
Over the trailing year it converted 1.49x of net income into operating cash flow. Historically, Industrials names rated neutral grew net income 59% of the time over the next year (vs 53% for the rest of the cohort, n=6654).
Most sensitive to the broad stock market.
Not enough signal to read sensitivity to the US dollar, long-term interest rates, Fed net liquidity, real (inflation-adjusted) rates (low R² over the window).
16 material management or governance events in the past 24 months, led by executive changes. Historically, Industrials names rated neutral grew net income 58% of the time over the next year (vs 56% for the rest of the cohort, n=3431).
Not investment advice. As of 2026-09-04.
“Railway operating revenues of $3.0 billion, up $5 million, or flat compared to first quarter 2025.”
“Railway operating revenues of $3.0 billion, down $50 million, or 2%, compared to fourth quarter 2024.”
“Railway operating revenues of $3.1 billion, an increase of $52 million, or 2%, compared to third quarter 2024.”
“Continue to expect revenue growth in 2025, updating full year revenue growth expectation to 2-3% vs. 2024.”
“Adjusted operating ratio for second quarter 2026 was 65.5%, 210 basis points higher than adjusted second quarter 2025.”
“Adjusted operating ratio for first quarter 2026 was 68.7%, 80 basis points higher than first quarter 2025.”
“Adjusted operating ratio for fourth quarter 2025 was 65.3%.”
“Adjusted operating ratio for third quarter 2025 was 63.3%, 10 basis points improvement from prior year.”
“Adjusted operating ratio for second quarter 2025 was 63.4%, 170 basis points improvement from prior year.”
“Discussed the merger transaction and related risks and uncertainties.”