From The Motley Fool · Motley Fool Transcribing · · 1m 50s
CSX Q3 2026 Earnings Report Highlights
CSX reports record quarterly revenue and margin expansion with strong intermodal growth.
In brief
CSX reports record quarterly revenue and margin expansion with strong intermodal growth. CSX achieved $4.02 billion quarterly revenue, 39.1% operating margin, and 5% volume growth in Q3 2026. Originally reported by The Motley Fool.
Q3 2026 Results
CSX reported $4.02 billion quarterly revenue, a 12% year-over-year increase.
Earnings Per Share
Adjusted EPS of $0.57, representing 30% growth from last year.
Operating Margin
39.1% operating margin, 420 basis points expansion year over year.
Total Volume
1.69 million units, 5% year-over-year growth across segments.
Intermodal Performance
20% revenue growth to record level with 7% volume increase.
Merchandise Segment
11% revenue growth on 3% volume increase supported by metals demand.
Metals Volume
12% year-over-year growth in metals volume due to new steel mills.
Chemicals and Waste
7% volume growth driven by petroleum and waste product opportunities.
Fertilizer Headwinds
13% volume decline due to supply issues and low crop prices.
Coal Performance
10% revenue growth on 2% volume increase with higher global benchmarks.
Export Coal
7% volume increase as mine output rose with domestic utility tons declining.
Nonfuel Costs
3% year-over-year decrease despite handling 5% more volume.
Labor Expense
$19 million increase from higher incentive compensation and inflation.
PS&O Expenses
10% year-over-year decrease with improved locomotive utilization.
Safety Metrics
FRA injury rate decreased 17% and accident rate fell 4%.
Fuel Efficiency
Record fuel efficiency achieved through trip optimizer technology.
Revenue Guidance
Full-year revenue growth expected in high single digits.
Margin Guidance
Operating margin expansion of more than 350 basis points for 2026.
Capital Expenditures
Guidance remains below $2.4 billion for 2026 infrastructure projects.
Free Cash Flow
Expected to exceed 80% growth for full year driven by efficiency gains.
The one thing
CSX achieved $4.02 billion quarterly revenue, 39.1% operating margin, and 5% volume growth in Q3 2026.
