How does Norfolk Southern (NSC) make money?

Norfolk Southern (NSC) generates revenue primarily from Railway Operating Revenues Market Group Merchandise, which accounted for 63.2% of total revenue in TTM through Q1 2026. The company reported $12.19B in revenue and converted 21.9% of it into net profit, equivalent to roughly $2.67B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Norfolk Southern (NSC)?

Norfolk Southern (NSC) reported a gross profit margin of 45.3% in TTM through Q1 2026, equivalent to $5.52B in gross profit on $12.19B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Norfolk Southern (NSC)?

Norfolk Southern (NSC) reported an operating profit margin of 32.4% in TTM through Q1 2026, equivalent to $3.95B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Norfolk Southern (NSC)?

Norfolk Southern (NSC) reported a net profit margin of 21.9% in TTM through Q1 2026, equivalent to $2.67B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Norfolk Southern (NSC) profitable?

Yes. Norfolk Southern (NSC) reported $2.67B in net income for TTM through Q1 2026, with a net profit margin of 21.9%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Norfolk Southern (NSC) spend on capital expenditures?

Norfolk Southern (NSC) spent $67.00M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.5% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Norfolk Southern (NSC) generate?

Norfolk Southern (NSC) generated $3.82B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 31.4%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Norfolk Southern (NSC)?

Norfolk Southern (NSC) had an effective tax rate of 21.5% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Norfolk Southern (NSC)?

Norfolk Southern (NSC) reports revenue across 3 reportable product segments, led by Railway Operating Revenues Market Group Merchandise at 63.2% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How Norfolk Southern Makes Money: 2026 Visual Revenue Map

Norfolk Southern (NSC) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 24, 2026).

Norfolk Southern discloses geographic revenue only in annual filings. to view the full breakdown.

Norfolk Southern (NSC) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Norfolk Southern (NSC) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Railway Operating Revenues Market Group Merchandise	$7.71B	63.2%
Railway Operating Revenues Market Group Intermodal	$3.00B	24.6%
Railway Operating Revenues Market Group Coal	$1.48B	12.2%
Total	$12.19B	100%

Railway Operating Revenues Market Group Merchandise$7.71B
Railway Operating Revenues Market Group Intermodal$3.00B
Railway Operating Revenues Market Group Coal$1.48B
Total$12.19B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Norfolk Southern (NSC) reports revenue across 3 operating segments; the largest segment was Railway Operating Revenues Market Group Merchandise at 63.2%, followed by Railway Operating Revenues Market Group Intermodal (24.6%) and Railway Operating Revenues Market Group Coal (12.2%).

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