CSX (CSX) Q3 2026 Earnings Report
MX:CSX Q3 2026 EPS Results
- Actual EPS
- MXN 10.58
- Consensus EPS
- MXN 9.85
- Beat/Miss
- Beat by +MXN 0.72
- One Year Ago EPS
- MXN 8.16
MX:CSX Q3 2026 Revenue Results
- Actual Revenue
- MXN 74.53B
- Expected Revenue
- MXN 73.51B
- Beat/Miss
- Beat by +MXN 1.03B
- YoY Revenue Growth
- +11.99%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/21/2026
- Time
- After Close
- Conference Call
- Wednesday, October 21, 2026
CSX's next earnings date is estimated for January 27, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call was strongly positive. CSX reported double-digit revenue growth, 30% EPS growth, substantial margin expansion, record fuel efficiency, improved safety, record intermodal volume, and raised revenue guidance. Management also highlighted continued productivity initiatives, capacity investments, and growth opportunities. The main challenges were fertilizer and domestic coal weakness, temporary Atlanta service tightness, seasonal fourth-quarter cost pressure, fuel volatility, driver shortages, and a smaller expected productivity contribution in 2027, but these issues were presented alongside active mitigation efforts and an overall confident outlook.
For 2026, CSX now expects revenue growth in the high single digits, compared to the mid to high single digit range provided previously; the rest of its guidance is unchanged, including full year operating margin expansion of more than 350 basis points, capital expenditures below $2.4 billion, and free cash flow growth of more than 80%. For the fourth quarter, CSX expects year over year margin improvement above 300-- 350 points, normal seasonal increases in PS&O and some step up sequentially in the fourth quarter expense line, while coal RPU is expected to increase another small sequential amount; service started strong in October, with velocity averaging more than 19 mph this month and dwell approaching 10 hours. The company has a little over 100 initiatives contributing to its 2027 productivity target, which is expected to be a significant number next year, though 2027 will not be as big as 2026, and other revenue is expected to be around the mid-$130s per quarter, with the fourth quarter probably a little better than that.
- Strong Earnings and Margin ExpansionThird-quarter earnings per share increased 30% year over year to $0.57. Adjusted operating income increased 25%, while operating margin improved to 39.1%, up 420 basis points from last year's adjusted result.
- Revenue and Volume GrowthThird-quarter revenue increased 12%, total volume increased 5%, and revenue per unit increased 7%. Revenue growth was driven by higher fuel surcharge, 5% volume growth, and pricing gains across merchandise, intermodal, and coal.
- Record Fuel Efficiency and Productivity GainsThird-quarter fuel efficiency was CSX's best ever and was described as the best ever reported by any U.S. railroad. Workforce efficiency, measured by gross ton-miles per employee, also improved substantially year over year.
- Safety Performance ImprovedThe FRA injury rate decreased 17% year over year and the accident rate decreased 4%, reflecting continued progress in strengthening CSX's safety culture.
- Nonfuel Cost EfficiencyCSX handled 5% more volume while reducing nonfuel costs by 3%. PS&O expenses declined 10%, driven by improved locomotive and vehicle utilization, reduced reliance on external labor, absorption of intermodal volume growth, and maintenance efficiencies.
- Improved Service Metrics and Operational ExecutionVelocity, dwell, and customer switch data improved sequentially, while carload trip plan compliance improved modestly quarter over quarter. October service started strongly, with velocity averaging more than 19 mph and dwell approaching 10 hours. CSX also managed Hurricane Isaias with minimal impact.
- Merchandise Revenue GrowthMerchandise revenue increased 11% and volume increased 3%. Merchandise revenue per unit excluding fuel increased more than 2%, while revenue per unit including fuel increased 8% year over year.
- Strength in Metals and ChemicalsMetals volume increased 12%, supported by strong plate demand across infrastructure and energy markets and increasing output from new steel mills on CSX's network. Chemicals volume increased 7%, driven by conversion opportunities and growth in waste and petroleum products.
- Record Intermodal PerformanceTotal intermodal volume increased 7% year over year to a new all-time record. Intermodal revenue increased 20% and revenue per unit increased 13%, with domestic intermodal driving the quarter.
- Domestic Intermodal Growth OpportunitiesReduced trucking availability, higher truck rates, and elevated diesel costs continued to benefit intermodal. New services through Birmingham, Myrtlewood, Baltimore, and other areas were attracting new business, while SMX, Howard Street Tunnel improvements, channel partnerships, and truck-conversion initiatives continued to support domestic growth.
- Coal Revenue and Export GrowthCoal revenue increased 10%, driven by a 2% volume increase and a 7% increase in revenue per unit. Export tons increased 7% as mine output rose, while higher global coal benchmarks provided a moderate benefit to U.S. export yields.
- Updated 2026 Revenue GuidanceCSX raised its 2026 revenue-growth outlook to the high single digits from the previously provided mid to high single digit range.
- Strong Full-Year Financial OutlookThe company maintained its expectation for full-year operating margin expansion of more than 350 basis points, capital expenditures below $2.4 billion, and free cash flow growth of more than 80%.
- 2027 Productivity PipelineCSX has a little over 100 initiatives contributing to its 2027 productivity target and began incorporating a pipeline of sustainable efficiency initiatives into its 2027 budgets with clear accountability. Management said it is already thinking about 2028 initiatives as well.
- Capacity Investments to Support GrowthCSX is investing in network capacity and plans to add train-and-engine employees to support a growing business. In Atlanta, where volume has increased 50% over the last three years, the company is investing in track infrastructure to increase switching and processing capacity by 50%.
- Pricing Focus and Contract RenewalsPricing remains a key focus, with CSX taking a surgical approach across markets and having customer discussions about inflationary pressures. The company expects same-store sales pricing to be stronger in 2026 than in 2025, and discretionary merchandise pricing accelerated during the year.
- Operational Leadership ContinuityFollowing Mike Corey's retirement announcement after a 45-year career, Casey Albright and Doug Ryhorchuk will continue their existing responsibilities and report directly to the CEO. Management expressed confidence in the operations leadership bench.
- Technology and Fuel-Saving InitiativesCSX is using autonomous track-inspection cars, fuel-saving technology, and trip optimizer to improve planning, reduce delays, and improve fuel efficiency. Start-to-stop zero-to-zero technology is partially implemented and remains in testing with the FRA.
- Rail Partnerships and Customer Conversion EffortsCSX remains committed to interline partnerships intended to improve transit and reliability. The company is also working directly with shippers through its national accounts program to identify truckload lanes suitable for intermodal conversion and provide visibility into service performance.
- Other Revenue Above AverageThird-quarter other revenue benefited primarily from an in-transit reserve and higher intermodal storage costs. Management said the fourth-quarter amount would probably be somewhat better than the year-average quarterly level in the mid-$130 millions, depending on continued intermodal tightness.
MX:CSX Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Jan 27, 2027 | 2026 (Q4) | 9.65- | 7.24 | ― | ― |
| Oct 21, 2026 | 2026 (Q3) | 9.8510.58 | 8.16 | 29.55% (+2.41) | |
| Jul 22, 2026 | 2026 (Q2) | 9.6110.02 | 8.16 | 22.73% (+1.86) | |
| Apr 22, 2026 | 2026 (Q1) | 7.227.98 | 6.31 | 26.47% (+1.67) | |
| Jan 22, 2026 | 2025 (Q4) | 7.637.24 | 7.79 | -7.14% (-0.56) | |
| Oct 16, 2025 | 2025 (Q3) | 7.878.16 | 8.54 | -4.35% (-0.37) | |
| Jul 23, 2025 | 2025 (Q2) | 7.728.16 | 9.09 | -10.20% (-0.93) | |
| Apr 16, 2025 | 2025 (Q1) | 6.776.31 | 8.54 | -26.09% (-2.23) | |
| Jan 23, 2025 | 2024 (Q4) | 7.817.79 | 8.35 | -6.67% (-0.56) | |
| Oct 16, 2024 | 2024 (Q3) | 8.858.54 | 7.79 | 9.52% (+0.74) |
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
