Union Pacific is working with Morgan Stanley investment bankers to provide guidance on the potential acquisition of another Class I railroad, the online publication Semafor reported on Wednesday, citing people familiar with the matter.

Union Pacific , the largest U.S. railroad operator, said on Thursday it is in advanced talks with rival Norfolk Southern , signaling that a deal to form a $200 billion coast-to-coast rail company could be close - and potentially trigger further consolidation among remaining freight rail giants.

Union Pacific Corporation (NYSE:UNP) reported second-quarter 2025 earnings that beat analyst forecasts, driven by stronger freight volumes and enhanced operational efficiency. Following the announcement,

News reports say that BNSF Railway has hired Goldman Sachs to advise it about a potential rail merger. Semafor, an online publication, reported on Monday evening that BNSF has engaged Goldman Sachs in the wake of Union Pacific working with Morgan Stanley regarding potential mergers.

Analysts expect Union Pacific to report an earnings per share (EPS) of $2.89. The market awaits Union Pacific's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter. It's important for new investors to understand that guidance can be a significant driver of stock prices.

Freight transportation company Union Pacific (NYSE:UNP) in Q2 CY2025, with sales up 2.4% year on year to $6.15 billion. Its non-GAAP profit of $3.03 per share was 4.6% above analysts’ consensus estimates.