CSX (CSX) Q3 2026 earnings summary

Executive summary

• Q3 revenue reached a record $4.017B, up 12% YoY; operating income was $1.570B, net earnings $1.052B and diluted EPS $0.57.

• Volume rose 5% to 1.69M units; operating margin was 39.1%, up 420 bps from the prior-year adjusted margin.

Financial highlights

• Excluding the prior-year $164M goodwill impairment, operating income rose 25%, net earnings 29% and EPS 30%; adjusted 2025 comparatives were $1.251B, $818M and $0.44.

• Reported operating income increased 44% to $1.570B; Q3 expenses declined 2% to $2.447B despite 5% higher volume and $170M higher fuel expense.

• Non-fuel expenses before impairments fell 3% to $1.996B; Purchased Services and Other costs declined 10%.

• 9M revenue rose 8% to $11.434B; operating income increased 27% to $4.329B, net earnings 32% to $2.861B and diluted EPS 33% to $1.54.

Outlook and guidance

• FY2026 revenue growth guidance was raised to high single digits; operating margin expansion is expected to exceed 350 bps.

• FY2026 capital expenditures are expected below $2.4B and free cash flow growth above 80%.

• Q4 year-over-year margin improvement is expected above 350 bps; normal winter seasonality may lift PS&O and reduce fuel efficiency, with a typical 200–300 bps sequential margin decline.

• More than 100 productivity initiatives are in the pipeline for 2027; management expects a significant, though lower, productivity contribution than in 2026.