Norfolk Southern (NYSE:NSC) Announces Earnings Results

Norfolk Southern (NYSE:NSC) issued its earnings results on Thursday. The railroad operator reported $3.22 earnings per share for the quarter, topping the consensus estimate of $2.76 by $0.46, Zacks reports. The business had revenue of $3 billion during the quarter, compared to analysts’ expectations of $3.03 billion. Norfolk Southern had a return on equity of 18.93% and a net margin of 24.22%.The business’s revenue for the quarter was down 1.7% compared to the same quarter last year. During the same period in the prior year, the business earned $3.04 EPS.

Here are the key takeaways from Norfolk Southern’s conference call:

• Norfolk Southern said it achieved 0 reportable mainline derailments in Q4 and described 2025 as its best year in over a decade for train accident rates, citing material improvements in FRA reportable injury and accident ratios.
• Management highlighted strong productivity and cost control — $216 million of 2025 cost takeouts (ahead of target), a 3% increase in GTMs with 4% fewer employees (≈7% productivity), and an increased 2026 cost-savings target of $150 million while trimming 2026 CapEx to about $1.9 billion.
• Top-line pressure — Q4 volumes were down ~4% and revenue down ~2% (Intermodal -7%, coal revenue -11% due to weaker seaborne prices) — and management cited ~1% of revenue headwind from competitor responses to the merger plus tariff/trade volatility.
• Adjusted Q4 operating ratio was 65.3 with EPS of $3.22; the company generated $2.2 billion of free cash flow (highest conversion since 2021) and guided 2026 OpEx to $8.2–$8.4 billion, balancing inflationary pressures with planned productivity gains.

Norfolk Southern Stock Down 0.7%

Shares of NSC traded down $2.07 during midday trading on Friday, hitting $288.09. The company had a trading volume of 152,560 shares, compared to its average volume of 1,041,126. Norfolk Southern has a 1 year low of $201.63 and a 1 year high of $302.24. The firm has a market capitalization of $64.64 billion, a P/E ratio of 21.95, a P/E/G ratio of 4.98 and a beta of 1.33. The company has a debt-to-equity ratio of 1.09, a quick ratio of 0.78 and a current ratio of 0.86. The company’s 50-day simple moving average is $290.30 and its 200-day simple moving average is $285.47.

Norfolk Southern Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Friday, February 20th. Shareholders of record on Friday, February 6th will be given a $1.35 dividend. The ex-dividend date of this dividend is Friday, February 6th. This represents a $5.40 dividend on an annualized basis and a yield of 1.9%. Norfolk Southern’s dividend payout ratio (DPR) is currently 41.19%.

Insiders Place Their Bets

In other Norfolk Southern news, EVP Anil Bhatt sold 900 shares of the stock in a transaction that occurred on Wednesday, November 19th. The shares were sold at an average price of $281.60, for a total value of $253,440.00. Following the sale, the executive vice president directly owned 1,413 shares of the company’s stock, valued at approximately $397,900.80. This represents a 38.91% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this link. Also, Director Sameh Fahmy bought 1,650 shares of the stock in a transaction that occurred on Wednesday, November 5th. The shares were purchased at an average price of $282.97 per share, with a total value of $466,900.50. Following the purchase, the director owned 12,000 shares of the company’s stock, valued at approximately $3,395,640. This represents a 15.94% increase in their position. The SEC filing for this purchase provides additional information. 0.06% of the stock is currently owned by company insiders.

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the business. Brighton Jones LLC lifted its position in Norfolk Southern by 4.9% during the 4th quarter. Brighton Jones LLC now owns 1,706 shares of the railroad operator’s stock worth $400,000 after acquiring an additional 79 shares during the period. Sivia Capital Partners LLC acquired a new position in shares of Norfolk Southern during the second quarter worth about $327,000. Schnieders Capital Management LLC. boosted its holdings in Norfolk Southern by 64.1% in the 2nd quarter. Schnieders Capital Management LLC. now owns 4,275 shares of the railroad operator’s stock valued at $1,094,000 after purchasing an additional 1,670 shares in the last quarter. GeoWealth Management LLC lifted its stake in shares of Norfolk Southern by 1.9% in the third quarter. GeoWealth Management LLC now owns 2,608 shares of the railroad operator’s stock valued at $783,000 after purchasing an additional 48 shares during the period. Finally, Larson Financial Group LLC increased its stake in Norfolk Southern by 6.3% in the 3rd quarter. Larson Financial Group LLC now owns 2,243 shares of the railroad operator’s stock valued at $674,000 after purchasing an additional 133 shares in the last quarter. 75.10% of the stock is currently owned by institutional investors and hedge funds.

Wall Street Analysts Forecast Growth

NSC has been the topic of a number of analyst reports. Weiss Ratings reaffirmed a “hold (c+)” rating on shares of Norfolk Southern in a research note on Thursday, January 22nd. Royal Bank Of Canada reaffirmed a “sector perform” rating and issued a $325.00 price target on shares of Norfolk Southern in a report on Thursday, December 18th. UBS Group lowered their price objective on Norfolk Southern from $321.00 to $320.00 and set a “buy” rating on the stock in a report on Friday, October 24th. Susquehanna raised their price target on shares of Norfolk Southern from $288.00 to $304.00 and gave the stock a “neutral” rating in a research note on Monday, January 12th. Finally, BMO Capital Markets increased their price objective on shares of Norfolk Southern from $285.00 to $305.00 and gave the company a “market perform” rating in a report on Friday, October 24th. Eight investment analysts have rated the stock with a Buy rating, fourteen have assigned a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus target price of $306.00.

Norfolk Southern News Summary

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: EPS and profitability beat: NSC reported $3.22 EPS vs. $2.78 consensus and delivered strong margins (net margin ~24.2%) and ROE (~18.9%), helping earnings-per-share beat drive investor optimism. Norfolk Southern (NSC) Beats Q4 Earnings Estimates
• Positive Sentiment: Productivity and cost savings: Management said the company exceeded its full-year productivity target, achieving over $215 million in annual savings and citing pricing gains that helped offset weaker volumes — a key reason investors view profitability as durable. Norfolk Southern reports fourth quarter and full year 2025 results
• Neutral Sentiment: Earnings-call context and investor materials: Management framed results as navigating a “volatile and challenging” macro environment; slides and the transcript provide detail on operational improvements and the company’s plan to sustain productivity gains. Analysts and investors will parse the call for guidance and cadence details. Norfolk Southern Corp (NSC) Q4 2025 Earnings Call Highlights
• Negative Sentiment: Revenue and volumes under pressure: Revenue of $3.0 billion missed estimates (~$3.03B) and total income from operations was down year-over-year, reflecting weaker freight volumes — a key risk to top-line growth if the trend persists. Norfolk Southern (NYSE:NSC) misses Q4 CY2025 sales expectations
• Negative Sentiment: Macro backdrop weighs on tone: Coverage notes lower income and revenue amid a volatile macroeconomy; continued soft demand or further revenue misses could pressure shares despite cost cuts. Norfolk Southern Profit, Revenue Falls

Norfolk Southern Company Profile

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.