Do Wall Street Analysts Like Union Pacific Stock?

Union Pacific Corporation (UNP), with a market capitalization of approximately $173.6 billion, is a major U.S. railroad company operating across 23 states. The Omaha, Nebraska-based company transports goods including agricultural products, automobiles, chemicals, coal, food, and forest products, connecting businesses and communities to domestic and global markets.

Shares of this leading railroad company have considerably outperformed the broader market over the past year. UNP has increased 33.3% over this period, while the broader S&P 500 Index ($SPX) has rallied 19.9%. On a year-to-date basis, UNP has also outperformed, gaining 26.6% compared with the index’s 12.9% gain over the same period.

Narrowing the comparison, UNP has also outperformed the iShares Transportation Average ETF (IYT), which has gained 28.3% over the past year and 16.7% year-to-date.

On July 23, Union Pacific reported its Q2 FY2026 earnings, with shares rising about 4% after results topped expectations and management raised its outlook. Total operating revenues grew 11.5% year over year to $6.90 billion, driven by higher fuel surcharge, volume growth, core pricing gains, and greater other revenue, partially offset by business mix. Adjusted diluted EPS rose 12.5% to $3.41.

Union Pacific raised its full-year 2026 outlook to high single-digit growth in reported diluted EPS, citing its ability to meet increased customer demand with strong service and continued productivity gains. The company also highlighted progress on its pending merger with Norfolk Southern, including an agreement with Canadian National that ended CN’s opposition to the deal.

For the current fiscal year ending in December 2026, analysts expect UNP’s diluted EPS to increase 10.9% to $12.93. The company has surpassed consensus EPS estimates in three of the past four quarters, while missing in one quarter.

Among the 24 analysts covering UNP stock, the consensus rating is a “Moderate Buy.” The rating is based on 16 “Strong Buys,” one “Moderate Buy,” and seven “Holds.”

UNP’s analyst configuration is more bullish than it was a month ago, when the stock had 15 “Strong Buy” recommendations.

On July 28, Wells Fargo analyst Christian Wetherbee maintained a “Buy” rating on Union Pacific and a $335 price target, citing better-than-expected Q2 results, improving rail fundamentals, and solid execution.

The mean price target of $333.26 implies a 13.8% upside from UNP’s current share price, while the Street-high target of $375 suggests a potential upside of 28%.