Union Pacific, Norfolk Southern File Application for Major Merger

Union Pacific ( (UNP) ) has shared an announcement.

On December 19, 2025, Union Pacific and Norfolk Southern jointly filed a nearly 7,000-page application with the Surface Transportation Board seeking approval to combine the two railroads, advancing a July 29, 2025 merger agreement aimed at creating America’s first transcontinental railroad. The companies say the end-to-end combination, supported by a record 2,000 stakeholder letters and 99% shareholder approval at both firms, would connect the U.S. from coast to coast, convert 10,000 lanes from interline to single-line service, and eliminate an estimated 2,400 rail car and container handlings and 60,000 car-miles per day, while retaining competitive options for almost all shared customer locations. The proposed merged network is framed as enhancing competition with long-haul trucking by shifting about 2 million truckloads a year to rail, boosting service to previously underserved “Watershed” regions, improving access to more than 100 ports, and reducing emissions through more efficient rail operations and fewer trucks on the road. For customers, the plan promises faster and more reliable single-line service, new intermodal and manifest train routes that cut transit times between Southern California and key eastern markets, improved asset utilization for railcar owners, and a unified digital platform with simplified contracts, invoicing and pricing, including a voluntary Committed Gateway Pricing system and alternative dispute resolution program. The railroads also emphasize safety and labor impacts, citing recent safety performance improvements, a joint safety integration plan developed with the Federal Railroad Administration, and commitments to protect all existing union jobs while expecting to add roughly 900 net new union positions by the third year after the merger, alongside about $2.1 billion in incremental capital investment and anticipated capital synergies.

The most recent analyst rating on (UNP) stock is a Buy with a $289.00 price target. To see the full list of analyst forecasts on Union Pacific stock, see the UNP Stock Forecast page.

Spark’s Take on UNP Stock

According to Spark, TipRanks’ AI Analyst, UNP is a Outperform.

Union Pacific’s strong financial performance and operational efficiencies are significant strengths. However, high leverage, declining free cash flow, and legal challenges related to the merger pose risks. The stock’s bullish technical indicators are tempered by overbought conditions, and the valuation is fair but not particularly attractive. The earnings call provided positive insights, but economic headwinds remain a concern.

To see Spark’s full report on UNP stock, click here.

More about Union Pacific

Union Pacific Corporation and Norfolk Southern Corporation are two of the largest U.S. freight railroads, with Union Pacific’s network concentrated in the western United States and Norfolk Southern’s network focused on the eastern manufacturing and population centers. Together, their complementary rail systems, customers and markets span 50,000 route miles and connect 43 states and more than 100 ports, positioning them as key players in long-haul freight transport and intermodal logistics across North America.

Average Trading Volume: 3,484,518

Technical Sentiment Signal: Strong Buy

Current Market Cap: $140.4B

Learn more about UNP stock on TipRanks’ Stock Analysis page.