On July 23, Union Pacific rose 5.01% in regular trading, trading at $308.62/share, with turnover of $138 million. The rally was driven by the company's Q2 earnings release before market open, which significantly exceeded Wall Street expectations on all key metrics.

Union Pacific reported Q2 adjusted earnings of $3.41 per diluted share, representing a 12.54% year-over-year increase and beating the analyst consensus estimate of $3.24 by 5.25%. Operating revenue came in at $6.86 billion, up 11.5% from $6.15 billion a year earlier, surpassing the $6.71 billion estimate. Freight revenue reached $6.52 billion, also above the $6.35 billion expected by the market. The company simultaneously raised its full-year EPS growth outlook to high-single digit.

Following the earnings release, Bank of America Securities raised its price target on Union Pacific from $301 to $334, maintaining an overweight rating. The broader Railroads sector rallied in sympathy, with Norfolk Southern up 6.48%, CSX Corp up 5.75%, and Canadian National Railway up 2.06%.

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