Norfolk Southern Corporation (NYSE:NSC) reported first-quarter 2026 results on Friday, with revenue of $3.0 billion, in line with estimates. The stock traded lower following the release despite flat year-over-year performance.

Diluted EPS declined 27% to $2.43, while adjusted diluted EPS was $2.65, down 1% from the prior year but above the $2.51 estimate.

Profitability and Operating Metrics

Income from railway operations decreased 23% to $877 million. Adjusted income from railway operations was $939 million, down 2% year over year.

The operating ratio deteriorated to 70.7% from 61.7% a year earlier. The adjusted operating ratio was 68.7%, up 80 basis points year over year.

Impact of One-Time Items

The difference between GAAP and adjusted results reflects merger-related ...