Union PacificHAM:UNP +0.26%91 Operating Margin % is 39.54% as of Mar. 2026, which is 0% below its 10-year median of 39.64. GuruFocus rates HAM:UNP with a GF Score™ of 91/100 and a GF Value™ of €216.95. The stock has 3 warning signs investors should review. Among 1,007 Transportation companies, Union Pacific ranks better than 95.63% on this metric.
Operating Margin % is calculated as Operating Income divided by its Revenue. Union Pacific's Operating Income for the
three
months ended in Mar. 2026 was €2,126 Mil. Union Pacific's Revenue for the
three
months ended in Mar. 2026 was €5,378 Mil. Therefore, Union Pacific's Operating Margin % for the quarter that ended in Mar. 2026 was 39.54%.
The historical rank and industry rank for Union Pacific's Operating Margin % or its related term are showing as below:
HAM:UNP'
s Operating Margin % Range Over the Past 10 Years
Min: 36.32 Med: 39.64 Max: 42.83
Current: 40.22
HAM:UNP's Operating Margin % is ranked better than 95.63% of 1007
companies
in the Transportation industry
Industry Median: 7.37
vs HAM:UNP: 40.22
Union Pacific's 5-Year Average Operating Margin % Growth Rate was -0.70% per year.
Union Pacific's Operating Income for the
three
months ended in Mar. 2026 was €2,126 Mil.
Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was €8,538 Mil.
Union Pacific (HAM:UNP) Operating Margin % Explanation
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Union Pacific Operating Margin % Related Terms
Union Pacific Operating Margin % Historical Data
* Premium members only.
The historical data trend for Union Pacific's Operating Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
HAM:UNP vs CSX, NSC, WAB: Operating Margin % Comparison
For the Railroads subindustry, Union Pacific's Operating Margin %, along with its competitors' market caps and Operating Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Union Pacific Operating Margin % vs Transportation Industry
For the Transportation industry and Industrials sector, Union Pacific's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Union Pacific's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Union Pacific's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Union Pacific (HAM:UNP) has a Operating Margin % of 39.54% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Union Pacific and its competitors. This is near median its historical median of 39.64. Over the past decade, Union Pacific's Operating Margin % has ranged from 36.32 to 42.83. According to the industry distribution chart, Union Pacific ranks #44 out of 1007 companies in the Transportation industry, placing it in the top 4.4%.
Is Union Pacific's Operating Margin % too high?
Union Pacific's current Operating Margin % of 39.54% is near median its 10-year median of 39.64. Over the past 10 years, this metric has ranged from a low of 36.32 to a high of 42.83. The Transportation industry median Operating Margin % is 7.37. Union Pacific's value of 39.54% is 436.5% above this industry median. Based on the distribution chart, Union Pacific ranks #44 out of 1007 companies in the Transportation industry, which is in the top quartile — a strong position relative to peers. Overall, Union Pacific has a GF Score™ of 91/100, reflecting its overall financial health beyond just this single metric.
How does Union Pacific's Operating Margin % compare to CSX and NSC?
According to the Transportation industry distribution chart, Union Pacific ranks #44 out of 1007 companies for Operating Margin %. This places Union Pacific in the top 4% of its industry — outperforming the majority of peers. The industry median Operating Margin % is 7.37. Union Pacific's value of 39.54% is 436.5% above this benchmark. Historically, Union Pacific's own Operating Margin % has ranged from 36.32 to 42.83 over the past decade. While the company's 10-year median is 39.64 vs. the industry median of 7.37, Union Pacific has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Transportation company?
The median Operating Margin % among Transportation companies is 7.37, based on 1,007 companies in the industry. Companies in the top quartile (top 25%) have a Operating Margin % significantly above this median, while those in the bottom quartile fall well below. However, Operating Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Union Pacific's current Operating Margin % of 39.54% is 436.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Union Pacific and its competitors. For the Transportation industry, the median Operating Margin % is 7.37 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Union Pacific's current Operating Margin % is 39.54%, which is near median its own 10-year median of 39.64. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Union Pacific stock overvalued right now?
Union Pacific (HAM:UNP) has a current Operating Margin % of 39.54%. The stock's GF Value™ is €216.95, compared to a current price of €228.40 — trading 5.3% above its estimated fair value. The current Operating Margin % is 39.54%, which is near median its 10-year median of 39.64 and 436.5% above the Transportation industry median of 7.37. Union Pacific's overall GF Score™ is 91/100 with 3 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Union Pacific (HAM:UNP), the current Operating Margin % is 39.54% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Union Pacific (HAM:UNP) Overvalued in 2026?
Based on GuruFocus' analysis, Union Pacific stock appears to be overvalued.
The current stock price of €228.40 is trading 5.3% above its estimated GF Value™ of €216.95.
Key valuation signals for HAM:UNP:
Operating Margin %: 39.54% (near median its 10-year median of 39.64)
GF Value™: €216.95 vs. price of €228.40 (5.3% above fair value)
Industry Position: 436.5% above the Transportation median (#44 of 1007)
No single metric tells the full story. See the HAM:UNP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Omaha, Nebraska-based Union Pacific is the largest public railroad in North America. Operating on more than 30,000 miles of track in the western two-thirds of the US, Union Pacific generated $24.5 billion of revenue in 2025 by hauling coal, industrial products, intermodal containers, agricultural goods, chemicals, fertilizers, and automotive goods. Union Pacific owns about one-fourth of Mexican railroad Ferromex and historically derives roughly 10% of its revenue hauling freight to and from Mexico.
91GF Score
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