Goldman Sachs has adjusted its rating for Union Pacific Corporation to Neutral and raised its price target from $259 to $267, signaling an expected upside of approximately 14.8%. The investment bank cited the company’s disciplined pricing strategy and resilient core operations as the basis for its more optimistic outlook, even as fourth-quarter results fell short of consensus estimates.

In the fourth quarter, Union Pacific reported earnings per share of $2.86, missing the Zacks Consensus Estimate of $2.90, while operating revenues declined 1% year-over-year to $6.08 billion. The revenue shortfall was driven by a 4% drop in volume carloads, partially offset by core pricing gains and fuel surcharges. Despite lower volumes, the railroad improved its operating ratio, reflecting tighter cost controls.

For full-year 2025, Union Pacific delivered record net income of $7.1 billion, up 6% from the prior year, and achieved adjusted EPS of $11.98, an 8% increase. The company distributed $5.9 billion in dividends and share repurchases—a 25% increase versus 2024—underscoring its commitment to returning capital. Management reaffirmed guidance for mid-single-digit EPS growth and plans approximately $3.3 billion in capital expenditures for 2026 to support network efficiency and growth initiatives.