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Research Alert: Nsc Q1: Stable Core Performance, Union Pacific Merger On Track

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

Norfolk Southern Corporation (NSC) reported steady Q1 2026 revenues of $3.0B despite 1% volume decline, with operating ratio rising to 70.7% from 61.7% due to $62M in Eastern Ohio incident and merger costs. Adjusted EPS declined just 1% to $2.65 with operating ratio at 68.7%, showing resilience amid weather and fuel headwinds, while Merchandise segment grew 1.2% to $1,885M. The planned Union Pacific merger remains the key strategic catalyst, set to create the first East-West transcontinental rail network with mid-to-late 2027 closing timeline. Management is focusing on "controllables," including productivity, service, and safety over volume growth. We believe Norfolk Southern's disciplined approachcutting capex 14.9% to $382M while maintaining dividendsand steady adjusted performance despite temporary merger-related pressures demonstrate the underlying strength of its Eastern franchise and long-term value proposition ahead of the transformational UNP combination.

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