Norfolk Southern Corp. reported second-quarter 2026 results on Thursday that came in above Wall Street expectations, helped by stronger freight demand and higher fuel surcharges.

The Atlanta-based railroad, listed on the New York Stock Exchange under the ticker NSC, posted adjusted earnings of $3.52 per share for the quarter. That compared with $3.29 per share a year earlier and exceeded the analysts’ consensus estimate of $3.31 per share.

Railway operating income was $3.5 billion, up 11% from the prior-year period and above estimates of $3.38 billion. The company benefited as a recovering rail market improved pricing power across key freight categories.

Norfolk Southern’s adjusted operating ratio increased by 210 basis points to 65.5% from 63.4% a year earlier. The rise came as the company continued to face cost pressure, particularly from fuel. In the railroad industry, operating ratio is a closely watched efficiency measure because it shows operating expenses as a share of revenue; a higher ratio generally indicates more cost pressure relative to sales.

The railroad’s ability to pass fuel costs on to customers through surcharges, along with operational improvements and steady intermodal volumes, helped support earnings even as the operating ratio remained under pressure. Intermodal freight, which typically involves moving containers and trailers by rail in connection with truck or ship transport, is an important volume category for large U.S. railroads because it links rail networks with consumer goods and broader supply chains.

Norfolk Southern has now topped Wall Street bottom-line estimates in each of the past four quarters despite challenging macroeconomic conditions. The company is one of the major U.S. Class I freight railroads and operates a network serving key industrial, consumer and intermodal markets across the eastern United States. Investors and industry observers will continue to watch whether freight demand, fuel costs and service efficiency can support margins in coming quarters.