CSX (NASDAQ:CSX) Releases Earnings Results, Beats Expectations By $0.04 EPS

CSX (NASDAQ:CSX) announced its earnings results on Wednesday. The transportation company reported $0.57 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.53 by $0.04, FiscalAI reports. CSX had a return on equity of 24.98% and a net margin of 22.21%. The business had revenue of $4.02 billion for the quarter, compared to analyst estimates of $3.96 billion. During the same period in the previous year, the company earned $0.44 earnings per share. The company’s revenue for the quarter was up 12.0% compared to the same quarter last year.

Here are the key takeaways from CSX’s conference call:

• Strong third-quarter performance: Adjusted EPS rose 30% year over year to $0.57, while volume increased 5% and the operating margin expanded 420 basis points to 39.1%. Higher revenue and lower non-fuel costs drove a 25% increase in operating income.
• CSX raised its 2026 revenue-growth outlook to the high-single-digit range and maintained expectations for more than 350 basis points of full-year margin expansion, capital expenditures below $2.4 billion, and free-cash-flow growth above 80%.
• Intermodal was a key growth engine, with volume up 7% to a record level and revenue up 20%, supported by truck-to-rail conversions, tight trucking capacity, new services, and expanded double-stack operations through Baltimore.
• Management highlighted continued productivity gains, including record fuel efficiency, a 17% reduction in the FRA injury rate, a 4% decline in the accident rate, and a pipeline of more than 100 efficiency initiatives planned for 2027.
• Management expects normal fourth-quarter seasonal cost pressure, including higher labor and PS&O expenses and weaker winter fuel efficiency; intermodal trip-plan compliance also declined, while fertilizer volumes fell 13% and some Atlanta operations experienced temporary service tightness.

CSX Stock Performance

Shares of CSX opened at $48.40 on Thursday. The stock has a market capitalization of $89.66 billion, a PE ratio of 27.98, a price-to-earnings-growth ratio of 2.27 and a beta of 1.21. The business’s fifty day moving average price is $48.66 and its 200 day moving average price is $47.51. The company has a debt-to-equity ratio of 1.22, a current ratio of 0.82 and a quick ratio of 0.72. CSX has a 12-month low of $33.63 and a 12-month high of $53.60.

CSX Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, December 15th. Investors of record on Monday, November 30th will be paid a dividend of $0.14 per share. The ex-dividend date is Monday, November 30th. This represents a $0.56 annualized dividend and a yield of 1.2%. CSX’s dividend payout ratio (DPR) is 32.37%.

Insider Buying and Selling at CSX

In other CSX news, SVP Michael S. Burns sold 13,000 shares of the stock in a transaction on Friday, July 24th. The shares were sold at an average price of $52.68, for a total transaction of $684,840.00. Following the sale, the senior vice president directly owned 59,643 shares of the company’s stock, valued at approximately $3,141,993.24. This represents a 17.90% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available at the SEC website. Also, CAO Angela C. Williams sold 30,000 shares of the firm’s stock in a transaction dated Friday, July 24th. The stock was sold at an average price of $53.29, for a total transaction of $1,598,700.00. Following the completion of the transaction, the chief accounting officer owned 10,437 shares in the company, valued at approximately $556,187.73. The trade was a 74.19% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. 0.30% of the stock is owned by insiders.

Analyst Ratings Changes

Several analysts recently issued reports on the stock. Robert W. Baird upped their price target on shares of CSX from $49.00 to $53.00 and gave the company an “outperform” rating in a report on Tuesday, July 7th. Wall Street Zen lowered shares of CSX from a “buy” rating to a “hold” rating in a report on Saturday, August 8th. Argus set a $56.00 target price on shares of CSX in a research report on Friday, July 31st. BMO Capital Markets restated a “market perform” rating and issued a $52.00 target price (up from $49.00) on shares of CSX in a research note on Thursday, July 23rd. Finally, Evercore set a $51.00 price target on shares of CSX in a research report on Thursday, July 23rd. Seventeen analysts have rated the stock with a Buy rating, seven have given a Hold rating and one has given a Sell rating to the stock. Based on data from MarketBeat, CSX presently has an average rating of “Moderate Buy” and an average target price of $51.17.

Key Headlines Impacting CSX

Here are the key news stories impacting CSX this week:

• Positive Sentiment: CSX reported third-quarter adjusted operating income of $1.57 billion, net earnings of $1.05 billion and diluted EPS of $0.57, exceeding the approximately $0.53 consensus estimate. Revenue reached a record $4.02 billion, up 12% year over year and ahead of expectations. CSX third-quarter 2026 results
• Positive Sentiment: Operating performance improved materially: total volume increased 5%, intermodal volume rose 7% to a record, nonfuel costs declined 3%, and the operating margin expanded to 39.1%. These trends suggest stronger demand and meaningful cost discipline. CSX key earnings takeaways
• Positive Sentiment: Reported EPS rose 54% from $0.37 a year ago, while adjusted EPS increased 30% year over year, reinforcing the earnings-growth case for the railroad. CSX revenue and EPS growth
• Neutral Sentiment: CSX eliminated more than 100 management positions, potentially improving efficiency and expenses, but the restructuring also signals continued focus on cost control. CSX management position reductions
• Negative Sentiment: Morgan Stanley maintained a Sell rating and a $32 price target, citing valuation and long-term risks. The target is well below CSX’s recent trading range, where the stock carries a P/E near 28. Morgan Stanley CSX rating
• Negative Sentiment: Raymond James reduced its CSX price target from $56 to $53, adding a more cautious signal despite the quarterly earnings beat. Raymond James CSX price target

About CSX

CSX Corporation is a transportation company whose primary business is freight railroading through its CSX Transportation subsidiary. The company operates an extensive rail network across the eastern United States, serving major industrial centers, population hubs, ports and distribution markets.

CSX transports a broad range of products, including chemicals, agricultural and food products, forest products, minerals, metals, automotive goods and other manufactured merchandise. Its services also include intermodal transportation, which combines rail service with trucks and containers, as well as the movement of coal and other bulk commodities.

The company traces its roots to the formation of CSX Corporation in 1980 through the merger of Chessie System and Seaboard Coast Line Industries.