Union Pacific confirmed Thursday it is in advanced merger talks with Norfolk Southern, according to Barron's. While no deal is guaranteed, the announcement overshadowed Union Pacific’s better-than-expected second-quarter earnings. The company reported adjusted EPS of $3.03 on $6.2 billion in revenue, beating Wall Street estimates. Operational metrics improved across freight velocity, productivity, and carloads, although intermodal volume fell. CEO Jim Vena said the company’s strong Q2 results reflect its industry leadership, growth momentum, and focus on safety, service, and operational excellence. Analysts say Union Pacific, the larger party, would likely need to offer a premium for Norfolk. If the deal moves forward, it could reshape U.S. rail logistics by bypassing Chicago bottlenecks and boosting momentum for industry consolidation. Union Pacific shares dropped 4.5% to $220.52, while Norfolk Southern slipped 0.8% to $278.
