CSX Corporation Q3 2026 Earnings Recap

CSX shares rose 7.5% after earnings, as 5% volume growth, higher revenue and lower nonfuel costs drove a 30% increase in adjusted EPS and 420 basis points of operating-margin expansion. Investors also got a fourth-quarter outlook for year-over-year margin improvement above 350 basis points.

Key Takeaways

• Revenue increased 12%, supported by higher fuel surcharges, 5% volume growth and pricing gains across merchandise, intermodal and coal.
• Adjusted operating income rose 25%; nonfuel costs fell 3% despite handling more volume. The prior-year comparison included a $164 million goodwill impairment.
• Operating margin reached 39.1%, up 420 basis points year over year; EPS was $0.57, up 30% from the prior-year adjusted result.
• Safety improved: the FRA injury rate declined 17% and the accident rate fell 4%. Fuel efficiency also reached a company record.
• Service showed mixed progress: velocity, dwell and customer switch metrics improved sequentially, while intermodal trip-plan compliance declined. Management expects a typical seasonal expense increase in Q4.