v3.26.3
Stock-Based Compensation
 9 Months Ended
Sep. 30, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Third QuarterFirst Nine Months
2026202520262025
($ in millions)
Stock-based compensation expense$23 $17 $72 $52 
Total tax benefit3 5 13 13 

During the third quarter and first nine months of 2026, no stock options were granted. We granted restricted stock units (RSUs) and performance share units (PSUs) pursuant to the Long-Term Incentive Plan (LTIP), as follows:

Third QuarterFirst Nine Months
GrantedWeighted-Average Grant-Date Fair ValueGrantedWeighted-Average Grant-Date Fair Value
RSUs3,515 $344.37 202,406 $289.05 
PSUs2,268 346.22 81,254 275.84 
Stock Options
Third QuarterFirst Nine Months
2026202520262025
($ in millions)
Options exercised5,28157,035 53,083 125,939 
Cash received upon exercise$1 $10 $6 $16 
Related tax benefits realized— 1 2 3 

Restricted Stock Units

RSUs granted primarily have three- and four-year ratable restriction periods and will be settled through the issuance of shares of Norfolk Southern common stock (Common Stock). Certain RSU grants include cash dividend equivalent payments during the restriction period in an amount equal to the regular quarterly dividends paid on Common Stock. 
Third QuarterFirst Nine Months
2026202520262025
($ in millions)
RSUs vested4,622 6,884 193,175 170,102 
Common Stock issued net of tax withholding3,032 4,653 134,495 118,135 
Related tax benefits realized$— $— $2 $1 

Performance Share Units

PSUs provide for awards based on the achievement of certain predetermined corporate performance goals at the end of a three-year cycle and are settled through the issuance of shares of Common Stock. All PSUs will earn out based on the achievement of performance conditions and some will also earn out based on a market condition. The market condition fair value was measured on the date of grant using a Monte Carlo simulation model. No PSUs were earned or paid out during the third quarter and first nine months of 2026.

First Nine Months
2025
($ in millions)
PSUs earned8,540 
Common Stock issued net of tax withholding5,633 
Related tax benefits realized$—