$NSC Norfolk Southern Corp | Understand Stock

What Do They Do?

Moves freight by rail for manufacturers, energy producers, and other businesses across the eastern, southeastern, and midwestern United States.

How Do They Make Money?

Customers pay to transport goods by rail; the company earns the fare as each shipment moves and bills customers when the service is complete, with payment typically due within fifteen days of billing.

revenue

Segment	Share	How money arrives
Merchandise Usage-based	63% FY2022: 58%	Usage-based
Intermodal Usage-based	25% FY2022: 29%	Usage-based
Coal Usage-based	12% FY2022: 14%	Usage-based

Who Are Their Customers?

Intermodal marketing companies and steamship lines arrange container and trailer shipments; premium customers and equipment owners also use the service.

Do Revenues Turn Into Profits?

Yes. It kept 24 cents of every revenue dollar as net income in FY2025 and turned 18 cents into free cash flow.

Operating income, FY2025

36% of revenue

▲ +7% vs FY2024 ($4.1B, 34%)

Net income, FY2025

24% of revenue

▲ +10% vs FY2024 ($2.6B, 22%)

Free cash flow, FY2025

18% of revenue

▲ +29% vs FY2024 ($1.7B, 14%)

How Are They Changing?

Since the FY2025 annual report

Latest quarter: Q3 FY2026, the three months to Sep 30, 2026

Revenue: ▲ +14%; vs $3.1B in Q3 FY2025
Net income: ▲ +7%; vs $711M in Q3 FY2025

Merchandise share of revenue vs 63.5% in Q3 FY2025

Jul 23, 2026 Norfolk Southern raised its 2026 adjusted operating expense guidance The company updated its guidance range to $8.8 to $8.9 billion to account for higher estimated fuel expense.

Growing. Revenue grew 9% in 4 years, from $11.1B in FY2021 to $12.2B in FY2025, about 2% a year.

Revenue over time

Merchandise Intermodal Coal

$20B$10B$0

FY2021 FY2022 FY2023 FY2024 FY2025

Who Do They Compete With?

Competes with CSX