Norfolk Southern (NYSE:NSC) Issues Earnings Results

Norfolk Southern (NYSE:NSC) released its quarterly earnings results on Thursday. The railroad operator reported $3.22 earnings per share for the quarter, beating the consensus estimate of $2.76 by $0.46, Zacks reports. Norfolk Southern had a return on equity of 18.78% and a net margin of 23.59%.The firm had revenue of $3 billion for the quarter, compared to analysts’ expectations of $3.03 billion. During the same quarter last year, the firm posted $3.04 EPS. The company’s revenue was down 1.7% compared to the same quarter last year.

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 Price Performance

NSC stock opened at $291.40 on Friday. The company has a debt-to-equity ratio of 1.06, a current ratio of 0.85 and a quick ratio of 0.78. The company has a market cap of $65.39 billion, a P/E ratio of 22.86, a PEG ratio of 5.08 and a beta of 1.33. The firm has a 50-day moving average of $290.40 and a 200 day moving average of $285.67. Norfolk Southern has a 1 year low of $201.63 and a 1 year high of $302.24.

Norfolk Southern Dividend Announcement

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

Insider Buying and Selling

In other news, Director William Jr. Clyburn acquired 204 shares of the business’s stock in a transaction that occurred on Friday, December 5th. The shares were bought at an average cost of $294.79 per share, with a total value of $60,137.16. Following the transaction, the director owned 405 shares of the company’s stock, valued at $119,389.95. This trade represents a 101.49% increase in their position. The purchase was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, Director Sameh Fahmy bought 1,650 shares of the company’s stock in a transaction dated Wednesday, November 5th. The stock was purchased at an average price of $282.97 per share, for a total transaction 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 Investors Weigh In On Norfolk Southern

Large investors have recently bought and sold shares of the business. Sunbelt Securities Inc. increased its position in Norfolk Southern by 731.4% in the third quarter. Sunbelt Securities Inc. now owns 291 shares of the railroad operator’s stock worth $87,000 after buying an additional 256 shares in the last quarter. Coldstream Capital Management Inc. raised its stake in Norfolk Southern by 8.4% during the 3rd quarter. Coldstream Capital Management Inc. now owns 7,021 shares of the railroad operator’s stock worth $2,109,000 after acquiring an additional 542 shares during the period. Danske Bank A S purchased a new position in Norfolk Southern during the third quarter valued at approximately $28,475,000. Advisory Services Network LLC boosted its position in shares of Norfolk Southern by 6.9% in the third quarter. Advisory Services Network LLC now owns 13,505 shares of the railroad operator’s stock worth $4,057,000 after purchasing an additional 872 shares during the period. Finally, Hancock Whitney Corp increased its stake in shares of Norfolk Southern by 0.9% in the third quarter. Hancock Whitney Corp now owns 8,796 shares of the railroad operator’s stock worth $2,642,000 after purchasing an additional 77 shares in the last quarter. 75.10% of the stock is currently owned by institutional investors.

Key Norfolk Southern News

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

• Positive Sentiment: NSC reported quarterly EPS that beat consensus (reported $3.22 vs. ~ $2.76 expected), driven by pricing and cost control that lifted margins and helped results despite softer volumes. Read More.
• Positive Sentiment: Company highlighted sustained productivity improvements and over $215 million in annual savings for the full year, which supports cashflow and profitability going forward. Read More.
• Positive Sentiment: Operating-performance metrics beat some expectations (operating ratio ~68.5%), and management emphasized cost discipline as a buffer against a challenging macro backdrop. Read More.
• Neutral Sentiment: Earnings call transcript, slide deck and detailed presentation are available for investors who want forward guidance and segment-level color. These materials are useful for assessing whether productivity gains and pricing can continue. Read More.
• Neutral Sentiment: Benzinga ran an “Expert Outlook” summarizing the views of eight analysts — useful for gauging consensus and differing assumptions on volumes, pricing and margin recovery. Read More.
• Negative Sentiment: Revenue slightly missed expectations (reported ~$3.0B vs. ~$3.03B consensus), reflecting weaker volumes — a reminder that top-line risk remains if demand softens. Read More.
• Negative Sentiment: Two large firms trimmed price targets (JPMorgan: $301 ? $296; Citigroup: $317 ? $300) and keep neutral ratings, which caps near-term analyst-driven upside despite the beat. Read More.

Analyst Upgrades and Downgrades

A number of equities analysts have commented on NSC shares. Royal Bank Of Canada cut their price target on shares of Norfolk Southern from $325.00 to $320.00 and set a “sector perform” rating for the company in a research note on Friday. Sanford C. Bernstein reduced their target price on Norfolk Southern from $347.00 to $333.00 and set an “outperform” rating on the stock in a research note on Tuesday, November 11th. TD Cowen dropped their price target on Norfolk Southern from $320.00 to $314.00 and set a “buy” rating for the company in a research note on Friday, October 24th. Evercore ISI boosted their target price on Norfolk Southern from $298.00 to $299.00 in a research report on Thursday, December 18th. Finally, Benchmark restated a “hold” rating on shares of Norfolk Southern in a research report on Friday. Eight investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the stock presently has an average rating of “Hold” and a consensus target price of $303.32.

About Norfolk Southern

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.