Railroad merger buzz: Union Pacific posts $1.8 billion Q2 profit, Norfolk Southern deal talk lifts stocks

Union Pacific reported a strong second-quarter adjusted profit of $1.8 billion, exceeding expectations, as merger speculation with Norfolk Southern intensified. The potential tie-up, aiming to create a transcontinental railroad, faces regulatory scrutiny despite investor optimism fueled by Union Pacific’s earnings and the prospect of enhanced connectivity. Shares of railroad operators rose amid merger reports.