Omaha, Nebraska-based Union Pacific reported second-quarter earnings of $2.72 per share on revenue of $5.5 billion. Analysts were expecting earnings of $2.55 per share on revenue of $5.36 billion.
"As we move into the second half of 2021, we will continue working with our customers and the broader supply chain to increase fluidity and efficiently handle the strong demand for freight transportation," said CEO Lance Fritz.
The company says it leveraged volume growth, core pricing gains and productivity to generate its record quarterly results.
Union Pacific also said it made progress in reducing its carbon footprint, including a 3% improvement in its fuel consumption rate.
Shares of Union Pacific rose $3.27, or 1.5%, to $220.47 in recent action.
Railroads are experiencing a strong season. CSX announced Wednesday that it had also topped analyst estimates for the quarter.
CSX reported net income of $1.17 billion, or 52 cents a share, up from $499 million or 22 cents a share a year ago. Adjusted earnings were 40 cents a share.
Revenue totaled $2.99 billion, up 33% from a year ago, the company said, driven by growth across all lines of business.
Analysts surveyed by FactSet were expecting the company to report earnings of 37 cents a share on revenue of $2.928 billion.
Railroad stocks have been volatile in recent weeks as the .