Norfolk Southern Corp Reports Q3 Profit Decline, Exceeding Expectations
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Oct 23 2025
0mins
Should l Buy NSC?
Source: NASDAQ.COM
Earnings Overview: Norfolk Southern Corp reported third-quarter earnings of $711 million, or $3.16 per share, down from $1.099 billion, or $4.85 per share, in the same period last year.
Adjusted Earnings: Excluding special items, the company posted adjusted earnings of $741 million, or $3.30 per share, surpassing analysts' expectations of $3.20 per share.
Revenue Growth: The company's revenue increased by 1.7% to $3.103 billion compared to $3.051 billion in the previous year.
Analyst Expectations: Despite the decrease in net earnings, Norfolk Southern's results beat Wall Street estimates, indicating a stronger performance than anticipated.
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Analyst Views on NSC
Wall Street analysts forecast NSC stock price to rise
13 Analyst Rating
5 Buy
8 Hold
0 Sell
Moderate Buy
Current: 314.540
Low
297.00
Averages
316.56
High
340.00
Current: 314.540
Low
297.00
Averages
316.56
High
340.00
About NSC
Norfolk Southern Corporation is a holding company engaged in the rail transportation business. The Company is engaged in the rail transportation of raw materials, intermediate products, and finished goods in the Southeast, East, and Midwest and, via interchange with rail carriers, to and from the rest of the United States. It also transports overseas freight through several Atlantic and Gulf Coast ports. It offers an intermodal network in the eastern half of the United States. Its railroad operations system reaches various manufacturing plants, electric generating facilities, mines, distribution centers and transload facilities. It serves various industries such as agriculture, forest and consumer products, automotive, chemicals, and metals and construction. Its coal franchise supports the electric generation market, directly serving over 18 coal-fired power plants, as well as the export, domestic metallurgical, and industrial markets, through direct rail and river, lake, and coastal.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Norfolk Southern Corporation Stock Update
- Stock Performance: Norfolk Southern Corporation (NYSE:NSC) shares have risen 23.6% over the past year and 10% year-to-date, indicating market confidence in its future growth despite industry challenges.
- Earnings Report: The latest earnings report revealed an adjusted profit of $3.22 per share, up from $3.04 a year ago, showcasing improved profitability; however, revenue fell 2% year-over-year to $3 billion, reflecting increased market competition.
- Analyst Rating Changes: Baird lowered its price target for Norfolk Southern from $293 to $288 while maintaining a Neutral rating, indicating a cautious outlook on its future performance, particularly in light of the merger plans.
- Merger Impact: Deutsche Bank downgraded the stock from Buy to Hold, citing potential fluctuations in the railroad industry due to the merger; however, Cramer argued that this downgrade was ill-advised, emphasizing the market's underlying confidence in the stock.
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Activist Investor Involvement: An activist investor known for advocating sales of companies like Norfolk Southern and Sealed Air is now entering the Warner Bros. Discovery takeover discussions.
Focus on Takeover Battle: The investor's involvement indicates a strategic push in the ongoing takeover battle surrounding Warner Bros. Discovery.
See More
UBS Downgrades Norfolk Southern Corp to Neutral from Buy; Increases Target Price to $342 from $320
Company Update: Norfolk Southern Corporation has made a decision to cut its buyback program.
Target Price Adjustment: The target price for the company's stock has been raised to $342 from a previous $320.
See More
Wall Street's Latest Rating Changes Overview
- Amazon Downgrade: DA Davidson downgraded Amazon from Buy to Neutral, citing concerns that Amazon Web Services (AWS) is losing market share amid competition from Microsoft and Google, indicating a potential need for increased investment to regain its leading position in the cloud computing sector.
- Merit Medical Initiation: BTIG initiated coverage on Merit Medical with a Buy rating, highlighting its comprehensive product portfolio used across various interventional procedures, which underscores the company's high-quality positioning and growth potential in the medical device market.
- JBS Buy Rating: UBS initiated coverage on Brazilian meat company JBS with a Buy rating and a price target of $19.5 per share, implying a 23% upside, reflecting market confidence in its re-rating and potential stock price appreciation.
- Vistra Upgrade: Goldman Sachs upgraded Vistra from Neutral to Buy, projecting a potential EBITDA increase of 3-9% by 2028, indicating investor optimism regarding its future profitability and growth prospects in the nuclear energy sector.
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Norfolk Southern Drives 60 Projects for Economic Growth
- Economic Growth Initiatives: In 2025, Norfolk Southern Corporation advanced over 60 industrial development projects, representing $7.7 billion in investments that significantly boosted local economies and job growth.
- Rail Facility Expansion: These projects primarily focus on new or expanded rail-served facilities, indicating strategic decisions aimed at enhancing transportation capacity and service quality, thereby solidifying the company's market position.
- Strategic Network Advantage: The extensive reach of Norfolk Southern's strategic network enabled this economic activity, enhancing the company's influence across states and industries while promoting diversified regional economic development.
- Customer Investment Confidence: The trust and investment willingness from customers reflect Norfolk Southern's leadership in the industry, with future prospects for attracting more investments to support ongoing economic growth.
See More
Norfolk Southern Drives Economic Growth with $7.7 Billion in Projects
- Investment Scale: In 2025, Norfolk Southern's customers advanced over 60 industrial development projects with a total investment of $7.7 billion, which not only spurred local economic growth but also strengthened the company's market position in rail services.
- Manufacturing Signals: Despite the U.S. Manufacturing PMI contracting for much of 2025, Norfolk Southern's pipeline continues to attract long-term private investments, highlighting its strategic importance in growth corridors across the Southeast and Midwest.
- Land Sales Strategy: In 2025, Norfolk Southern implemented a disciplined real estate strategy that linked land sales to integrated freight opportunities, enhancing network capacity and attracting rail-served industries, showcasing its forward-looking approach to future economic development.
- Merger Proposal Impact: Norfolk Southern's merger proposal with Union Pacific aims to create a unified coast-to-coast freight rail network, expected to accelerate U.S. reindustrialization and provide manufacturers with faster shipping options, further solidifying the economic foundation.
See More
Norfolk Southern Corporation Stock Update
- Stock Performance: Norfolk Southern Corporation (NYSE:NSC) shares have risen 23.6% over the past year and 10% year-to-date, indicating market confidence in its future growth despite industry challenges.
- Earnings Report: The latest earnings report revealed an adjusted profit of $3.22 per share, up from $3.04 a year ago, showcasing improved profitability; however, revenue fell 2% year-over-year to $3 billion, reflecting increased market competition.
- Analyst Rating Changes: Baird lowered its price target for Norfolk Southern from $293 to $288 while maintaining a Neutral rating, indicating a cautious outlook on its future performance, particularly in light of the merger plans.
- Merger Impact: Deutsche Bank downgraded the stock from Buy to Hold, citing potential fluctuations in the railroad industry due to the merger; however, Cramer argued that this downgrade was ill-advised, emphasizing the market's underlying confidence in the stock.
See More
Warner Bros. Hires Activist, Report Indicates: Implications for the Netflix Acquisition Struggle.
Activist Investor Involvement: An activist investor known for advocating sales of companies like Norfolk Southern and Sealed Air is now entering the Warner Bros. Discovery takeover discussions.
Focus on Takeover Battle: The investor's involvement indicates a strategic push in the ongoing takeover battle surrounding Warner Bros. Discovery.
See More
UBS Downgrades Norfolk Southern Corp to Neutral from Buy; Increases Target Price to $342 from $320
Company Update: Norfolk Southern Corporation has made a decision to cut its buyback program.
Target Price Adjustment: The target price for the company's stock has been raised to $342 from a previous $320.
See More
Wall Street's Latest Rating Changes Overview
- Amazon Downgrade: DA Davidson downgraded Amazon from Buy to Neutral, citing concerns that Amazon Web Services (AWS) is losing market share amid competition from Microsoft and Google, indicating a potential need for increased investment to regain its leading position in the cloud computing sector.
- Merit Medical Initiation: BTIG initiated coverage on Merit Medical with a Buy rating, highlighting its comprehensive product portfolio used across various interventional procedures, which underscores the company's high-quality positioning and growth potential in the medical device market.
- JBS Buy Rating: UBS initiated coverage on Brazilian meat company JBS with a Buy rating and a price target of $19.5 per share, implying a 23% upside, reflecting market confidence in its re-rating and potential stock price appreciation.
- Vistra Upgrade: Goldman Sachs upgraded Vistra from Neutral to Buy, projecting a potential EBITDA increase of 3-9% by 2028, indicating investor optimism regarding its future profitability and growth prospects in the nuclear energy sector.
See More
Norfolk Southern Drives 60 Projects for Economic Growth
- Economic Growth Initiatives: In 2025, Norfolk Southern Corporation advanced over 60 industrial development projects, representing $7.7 billion in investments that significantly boosted local economies and job growth.
- Rail Facility Expansion: These projects primarily focus on new or expanded rail-served facilities, indicating strategic decisions aimed at enhancing transportation capacity and service quality, thereby solidifying the company's market position.
- Strategic Network Advantage: The extensive reach of Norfolk Southern's strategic network enabled this economic activity, enhancing the company's influence across states and industries while promoting diversified regional economic development.
- Customer Investment Confidence: The trust and investment willingness from customers reflect Norfolk Southern's leadership in the industry, with future prospects for attracting more investments to support ongoing economic growth.
See More
Norfolk Southern Drives Economic Growth with $7.7 Billion in Projects
- Investment Scale: In 2025, Norfolk Southern's customers advanced over 60 industrial development projects with a total investment of $7.7 billion, which not only spurred local economic growth but also strengthened the company's market position in rail services.
- Manufacturing Signals: Despite the U.S. Manufacturing PMI contracting for much of 2025, Norfolk Southern's pipeline continues to attract long-term private investments, highlighting its strategic importance in growth corridors across the Southeast and Midwest.
- Land Sales Strategy: In 2025, Norfolk Southern implemented a disciplined real estate strategy that linked land sales to integrated freight opportunities, enhancing network capacity and attracting rail-served industries, showcasing its forward-looking approach to future economic development.
- Merger Proposal Impact: Norfolk Southern's merger proposal with Union Pacific aims to create a unified coast-to-coast freight rail network, expected to accelerate U.S. reindustrialization and provide manufacturers with faster shipping options, further solidifying the economic foundation.
See More
