Q1 EPS Estimate for Norfolk Southern Lowered by Analyst

Norfolk Southern Corporation (NYSE:NSC) – Stock analysts at Zacks Research cut their Q1 2026 EPS estimates for shares of Norfolk Southern in a research note issued to investors on Tuesday, December 23rd. Zacks Research analyst Team now anticipates that the railroad operator will earn $2.89 per share for the quarter, down from their prior estimate of $2.90. Zacks Research currently has a “Strong Sell” rating on the stock. The consensus estimate for Norfolk Southern’s current full-year earnings is $13.00 per share. Zacks Research also issued estimates for Norfolk Southern’s Q4 2026 earnings at $3.38 EPS, Q1 2027 earnings at $3.31 EPS, Q2 2027 earnings at $3.75 EPS and Q3 2027 earnings at $3.35 EPS.

Norfolk Southern (NYSE:NSC) last announced its earnings results on Thursday, October 23rd. The railroad operator reported $3.30 earnings per share for the quarter, missing analysts’ consensus estimates of $3.31 by ($0.01). The firm had revenue of $3.10 billion for the quarter, compared to the consensus estimate of $3.11 billion. Norfolk Southern had a return on equity of 18.93% and a net margin of 24.22%.Norfolk Southern’s quarterly revenue was up .0% on a year-over-year basis. During the same period in the prior year, the business earned $3.25 EPS.

Several other equities research analysts have also commented on the company. Sanford C. Bernstein cut their target price on Norfolk Southern from $347.00 to $333.00 and set an “outperform” rating on the stock in a research report on Tuesday, November 11th. Royal Bank Of Canada reissued a “sector perform” rating and issued a $325.00 price target on shares of Norfolk Southern in a research note on Thursday, December 18th. Barclays raised their price objective on shares of Norfolk Southern from $320.00 to $340.00 and gave the stock an “overweight” rating in a research report on Tuesday, December 16th. Benchmark reiterated a “hold” rating on shares of Norfolk Southern in a research report on Monday, October 27th. Finally, Weiss Ratings cut shares of Norfolk Southern from a “buy (b-)” rating to a “hold (c+)” rating in a report on Saturday, October 25th. Seven research analysts have rated the stock with a Buy rating, sixteen have given a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and an average price target of $299.45.

Norfolk Southern Stock Performance

Shares of Norfolk Southern stock opened at $292.71 on Wednesday. The business has a 50-day moving average price of $288.05 and a two-hundred day moving average price of $279.93. Norfolk Southern has a 1-year low of $201.63 and a 1-year high of $302.24. The company has a current ratio of 0.86, a quick ratio of 0.78 and a debt-to-equity ratio of 1.09. The company has a market cap of $65.68 billion, a P/E ratio of 22.33, a PEG ratio of 5.40 and a beta of 1.32.

Norfolk Southern Dividend Announcement

The firm also recently declared a quarterly dividend, which was paid on Thursday, November 20th. Investors of record on Friday, November 7th were given a $1.35 dividend. The ex-dividend date of this dividend was Friday, November 7th. This represents a $5.40 annualized dividend and a yield of 1.8%. Norfolk Southern’s dividend payout ratio (DPR) is presently 41.19%.

Insider Buying and Selling at Norfolk Southern

In other Norfolk Southern news, Director Richard H. Anderson acquired 2,600 shares of the stock in a transaction on Monday, October 27th. The shares were purchased at an average price of $281.86 per share, for a total transaction of $732,836.00. Following the completion of the acquisition, the director owned 7,000 shares in the company, valued at approximately $1,973,020. This represents a 59.09% increase in their position. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, Director Sameh Fahmy acquired 1,650 shares of the company’s stock in a transaction on Wednesday, November 5th. The stock was acquired at an average cost of $282.97 per share, for a total transaction of $466,900.50. Following the completion of the purchase, the director directly owned 12,000 shares of the company’s stock, valued at approximately $3,395,640. This represents a 15.94% increase in their position. The SEC filing for this purchase provides additional information. Over the last 90 days, insiders have acquired 4,454 shares of company stock worth $1,259,874. Company insiders own 0.06% of the company’s stock.

Hedge Funds Weigh In On Norfolk Southern

Hedge funds have recently added to or reduced their stakes in the stock. Vanguard Group Inc. grew its position in Norfolk Southern by 1.2% during the 2nd quarter. Vanguard Group Inc. now owns 20,561,273 shares of the railroad operator’s stock worth $5,263,069,000 after acquiring an additional 239,914 shares during the last quarter. Dodge & Cox boosted its stake in shares of Norfolk Southern by 1.8% during the second quarter. Dodge & Cox now owns 10,859,121 shares of the railroad operator’s stock valued at $2,779,609,000 after purchasing an additional 192,567 shares during the period. Geode Capital Management LLC grew its holdings in shares of Norfolk Southern by 0.8% in the second quarter. Geode Capital Management LLC now owns 4,822,075 shares of the railroad operator’s stock worth $1,228,064,000 after purchasing an additional 36,362 shares during the last quarter. EdgePoint Investment Group Inc. grew its holdings in shares of Norfolk Southern by 4.6% in the second quarter. EdgePoint Investment Group Inc. now owns 4,182,921 shares of the railroad operator’s stock worth $1,070,702,000 after purchasing an additional 184,586 shares during the last quarter. Finally, Lazard Asset Management LLC increased its stake in shares of Norfolk Southern by 6.5% in the second quarter. Lazard Asset Management LLC now owns 3,289,431 shares of the railroad operator’s stock worth $841,994,000 after buying an additional 201,861 shares during the period. Institutional investors and hedge funds own 75.10% of the company’s stock.

Trending Headlines about Norfolk Southern

Here are the key news stories impacting Norfolk Southern this week:

• Positive Sentiment: Zacks slightly raised its Q4 2025 EPS forecast to $2.80 from $2.79 — a very small upward tweak that could be seen as modest near-term support for the stock. (Zacks Research note)
• Positive Sentiment: Zacks also nudged up its Q4 2026 estimate to $3.38 from $3.37, another marginal positive revision that helps offset some weaker calls elsewhere. (Zacks Research note)
• Neutral Sentiment: Brokerages’ aggregate view is a consensus “Hold,” signaling mixed analyst opinions rather than a clear buy/sell signal. Norfolk Southern Given Consensus Rating of “Hold” by Brokerages
• Negative Sentiment: Zacks trimmed multiple quarterly forecasts: Q1 2026 to $2.89 (from $2.90), Q1 2027 to $3.31 (from $3.38), Q2 2027 to $3.75 (from $3.77), and Q3 2027 to $3.35 (from $3.37). These downward tweaks suggest slightly weaker near-term earnings momentum than previously modeled. (Zacks Research notes)
• Negative Sentiment: Zacks cut its FY2027 outlook to $14.09 from $14.24 — a modest downgrade to full‑year expectations that could weigh on longer-term sentiment if others follow suit. (Zacks Research note)
• Negative Sentiment: Zacks continues to carry a “Strong Sell” rating on NSC. Even with mostly small EPS adjustments, the persistent negative rating is likely to cap upside and keep some investors cautious. (Zacks Research notes)

About Norfolk Southern

Norfolk Southern Corporation is a major U.S. freight railroad company that provides rail transportation and related logistics services. As a Class I carrier, the company operates an extensive network across the eastern United States and offers scheduled freight service for a broad range of industries. Its core operations include long-haul and regional rail freight transportation, intermodal services that move containers and trailers between rail and other modes, and terminal and switching services that support efficient rail shipments for industrial and port customers.

The company transports a variety of commodities, serving sectors such as coal and energy, automotive and automotive parts, chemicals, agriculture, metals and construction materials, and consumer goods.