At a glance
Norfolk Southern Corporation is worth $77.65B, about 27 times its fiscal 2025 earnings. Revenue grew 0.5% to $12.18B in fiscal 2025, with 23.6% kept as profit; over 5 years it has grown 4.5% a year. It pays a 1.56% dividend yield, and returned $13.51B to shareholders in dividends and buybacks over FY2021–FY2025. The stock returned +24.1% over the past year with dividends reinvested and +6.0% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 43.6% in the 2020 crash (S&P 500: 33.7%) and 28.4% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 5 months and 34 months after the lows.
The business in plain English
Norfolk Southern, based in Atlanta, owns Norfolk Southern Railway, a major freight railroad. It hauls raw materials, partly finished products and finished goods across the Southeast, East and Midwest, connecting with other railroads to reach the rest of the US. At the end of 2025 it operated about 19,100 route miles in 22 states and the District of Columbia. It also moves overseas freight through Atlantic and Gulf Coast ports.
It earns money by charging shippers to move freight, mostly under private contracts and price quotes that are not set by regulators. Railway revenue was $12.2 billion in 2025, in three groups. Merchandise, 63% of revenue, came from 2.3 million carloads of grain, chemicals, steel, lumber, cars and auto parts. Intermodal, 25%, means containers and trailers that can switch between ships, trucks and trains; the company handled 4.1 million of them, on what it calls the most extensive intermodal network in the eastern half of the US. Coal, 12%, totaled 78 million tons for power plants, steelmakers, industry and export markets.
One efficiency gauge, the operating ratio (operating costs as a share of revenue, where lower is better), improved to 64.2% in 2025 from 66.4% in 2024. In July 2025 the company agreed to be acquired by Union Pacific, subject to regulatory approval.
Price history
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NSC +24.1% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By business segment
| Merchandise | $7.68B | 63.1% |
| Intermodal | $3.01B | 24.7% |
| Coal | $1.49B | 12.2% |
Latest results
- In Q3 FY2026 (ended Sep 30, 2026), revenue was $3.53B, up 13.6% from a year earlier, and net income was $759.0M (+6.8%).
- For fiscal 2025, revenue was $12.18B (+0.5% year over year; +4.5% a year from FY2020 to FY2025) with a 23.6% net margin.
Financial health check
| Revenue growth a year (FY2020–FY2025) | +4.5% watch |
|---|---|
| Operating margin | 35.8% good |
| Free cash flow margin | 17.7% good |
| Return on equity (FY2025) | 18.5% good |
| Return on assets (FY2025) | 6.4% watch |
| Net cash (cash minus debt) | $-10.83B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2020 | $9.79B | $2.01B | $2.14B |
| FY2021 | $11.14B | $3.00B | $2.79B |
| FY2022 | $12.74B | $3.27B | $2.27B |
| FY2023 | $12.16B | $1.83B | $852.0M |
| FY2024 | $12.12B | $2.62B | $1.67B |
| FY2025 | $12.18B | $2.87B | $2.16B |
Valuation snapshot
| Market value | $77.65B |
|---|---|
| P/E ratio | 27.1 |
| Dividend yield | 1.56% |
Rank among 1514 US companies
Market value at each year end
Norfolk Southern’s market value went from $31.55B at the end of 2016 to $77.65B on Nov 2, 2026, about 2.5 times as much; since the end of 2025 it is up 20%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $77.65B | +19.9% |
| 2025 | $64.78B | +22.0% |
| 2024 | $53.10B | -0.7% |
| 2023 | $53.45B | -6.3% |
| 2022 | $57.05B | -21.3% |
| 2021 | $72.45B | +20.0% |
| 2020 | $60.35B | +19.2% |
| 2019 | $50.62B | +24.3% |
| 2018 | $40.73B | -1.8% |
| 2017 | $41.46B | +31.4% |
| 2016 | $31.55B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| NSC price data to Nov 2, 2026 | +21.3% | +24.1% | +24.0% | +6.0% | +16.4% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +21.3% |
| 2025 | +25.6% |
| 2024 | +1.5% |
| 2023 | -1.7% |
| 2022 | -15.6% |
| 2021 | +27.3% |
| 2020 | +24.7% |
| 2019 | +32.4% |
| 2018 | +5.2% |
| 2017 | +36.8% |
| 2016 | +31.4% |
| 2015 | -20.8% |
| 2014 | +20.7% |
| 2013 | +54.2% |
| 2012 | -12.7% |
| 2011 | +18.8% |
| 2010 | +22.9% |
| 2009 | +15.1% |
| 2008 | -4.8% |
| 2007 | +2.2% |
| 2006 | +13.7% |
| 2005 | +25.5% |
| 2004 | +55.1% |
| 2003 | +20.1% |
| 2002 | +10.4% |
| 2001 | +39.5% |
| 2000 | -31.8% |
| 1999 | -33.5% |
| 1998 | +6.6% |
| 1997 | +6.6% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 48.4% over that stretch · deepest drop along the way 62.9%, back to its old high 24.5 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 43.2% over that stretch · deepest drop along the way 43.6%, back to its old high 5 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 26.7% over that stretch · deepest drop along the way 28.4%, back to its old high 33.6 months after the low |
Insider activity
Form 4 filings from 2025-10-28 to 2026-10-28 (25 read): 0 open-market purchases and 0 sales ($0.00).
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.55% | Mar 31, 2026 |
ETFs with the most weight in NSC
| IYT iShares US Transportation ETF | 4.66% |
| SUPL ProShares Supply Chain Logistics ETF | 4.4% |
| FTXR First Trust Nasdaq Transportation ETF | 4.23% |
| FLV American Century Focused Large Cap Value ETF | 3.55% |
| SHPP Pacer Industrials and Logistics ETF | 3.31% |
| PAVE Global X US Infrastructure Development ETF | 3.14% |
| BDVG IMGP Berkshire Dividend Growth ETF | 2.96% |
| XTN SPDR S&P Transportation ETF | 2.61% |
What could go wrong
- The Union Pacific deal may not close. The merger needs Surface Transportation Board approval, and the first application was found incomplete. If the deal fails, the share price could fall, and in some cases Norfolk Southern could owe a $2.5 billion fee.
- Distraction and staff loss before closing. While the merger is pending, the agreement limits some business decisions, and uncertainty could push managers and skilled workers to leave. Legal and advisory costs are owed whether or not it closes.
- Eastern Ohio Incident costs could keep growing. Costs, fines and penalties tied to what the company calls the Eastern Ohio Incident have been significant and may exceed amounts already set aside. The event could also bring tighter rules for railroads.
- Required to carry hazardous materials. As a common carrier (a railroad legally obliged to serve shippers on request), Norfolk Southern must offer to haul hazardous materials, which exposes it to significant costs and claims if accidents happen.
- Most railroad workers belong to unions. About 80% of its railroad employees are covered by union contracts. Contract talks, strikes or work stoppages could disrupt service and hurt results.
- A costly network to maintain. Running a railroad takes constant, heavy investment: Norfolk Southern spent about $2.2 billion on its network and equipment in 2025, based on forecasts of future traffic. Misjudging demand can waste money or squeeze capacity.
Recent events
- Quarterly results released; Investor presentation or announcement
- Quarterly results released; Investor presentation or announcement
- Executive or board change; Investor presentation or announcement
- Shareholder vote results
- Quarterly results released; Investor presentation or announcement
- Major agreement signed
- Quarterly results released; Investor presentation or announcement
- Investor presentation or announcement
- Shareholder vote results; Other company announcement
- Other company announcement
For income and retirement investors
The dividend was $5.40 per share in fiscal 2025, up from $3.76 in 2020, or about 7.5% a year. But it was also $5.40 in fiscal 2023 and 2024, so there is no streak of annual increases. In 2025 dividends took 42% of earnings and 56% of free cash flow (cash left after capital spending). The yield was 1.6% as of October 28, 2026. Buybacks totaled $7.7 billion over fiscal 2021–2025, paused in 2024 and resumed at $534 million in 2025.
In past downturns it fell at least as far as the market. It dropped 63% in the 2008 financial crisis, when the market fell 48%, and took about two years from the low to recover. It fell 44% in the 2020 COVID crash but recovered in five months. In the 2022 bear market (a prolonged slump) it lost 28% and needed almost three years to regain its peak. Single stocks carry more risk than diversified funds.
Questions investors ask
How does Norfolk Southern make money?
It charges shippers to move freight by rail, mainly across the Southeast, East and Midwest. Railway revenue was $12.2 billion in 2025. Merchandise such as chemicals, grain, steel, lumber and vehicles brought in 63%, intermodal shipments (containers and trailers that also travel by ship or truck) 25%, and coal 12%. Most prices come from private contracts and quotes that regulators do not set. At the end of 2025 it operated about 19,100 route miles in 22 states and the District of Columbia.
Is Norfolk Southern merging with Union Pacific?
Yes, the companies agreed to merge, but completion depends on regulatory approval. On July 28, 2025, they signed an agreement under which each Norfolk Southern share would become one Union Pacific share plus $88.82 in cash. The Surface Transportation Board, the federal rail regulator, must sign off. The annual report filed February 9, 2026, said the board found the first application incomplete and a revised one was being prepared. If the deal ends in certain circumstances, either company could owe a $2.5 billion fee.
Does Norfolk Southern raise its dividend every year?
No. The dividend was $5.40 per share in each of fiscal 2023, 2024 and 2025, so there is no streak of annual increases. Before that it rose from $3.76 in 2020 to $4.96 in 2022, and growth averaged about 7.5% a year over the five years to 2025. In 2025 dividends used 42% of earnings and 56% of free cash flow. The yield was 1.6% as of October 28, 2026.
How did Norfolk Southern stock do in past market crashes?
It fell at least as far as the market in each of the three downturns measured. The shares dropped 63% from their 2008 peak during the financial crisis, versus 48% for the market, and took about two years from the low to recover. They fell 44% in the 2020 COVID crash and recovered in five months. In the 2022 bear market, a prolonged slump, they lost 28% and did not regain their old high until July 18, 2025, almost three years after the low.
How has Norfolk Southern stock performed over the long term?
Over ten years the share price rose about 348%, or 16.2% a year, as of October 28, 2026. Results were uneven: the five-year gain was 28%, about 5.1% a year, held back by a 15.6% fall in 2022 and roughly flat 2023 and 2024. Over the year to October 28, 2026, the price rose 22.7%. At that date the shares traded at about 26.5 times 2025 earnings, with a 1.6% dividend yield.