“We expect slightly over 4% inflation in 2026.”

In context

“c real estate sales. The entire Union Pacific team is collectively driving for excellence and that's producing best in class industry returns. As we apply that mindset to 2026, our current plans do not anticipate a significant economic upswing. We are however confident in our operational capabilities as our network is running better than ever. Our service product creates value for customers and we are committed to outperforming the markets through our business development efforts. It's also important to note that since we laid out our three year targets in September 2024, several things have changed. Notably, S and P Global's 2026 economic estimates in key areas such as industrial production, housing starts and auto sales have deteriorated. In addition, rail inflation is ticking up again. We expect slightly over 4% inflation in 2026. Our commitment to yielding price dollars that exceed inflation dollars has not changed but price may not be a driver of our improving margins in 2026. And of course, in September 2024, we did not anticipate the impact of merger costs and pausing our share repurchases. Despite this different backdrop, we remain committed to attaining our three year CAGR of high single to low double digit EPS growth through 2027. Specific to 2026, our earnings outlook is in the mid single digit range as we continue to face volume and cost headwinds. As 2025 demonstrated, the year ahead will likely present some ups and downs, but I am confident that we can adapt and drive financial gains. We are planning $3.3 billion for 2026 capital improvements and we will continue to deliver value to our shareholders with”