CSX (NASDAQ:CSX – Get Free Report) issued its quarterly earnings data on Wednesday. The transportation company reported $0.57 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.53 by $0.04, FiscalAI reports. The business had revenue of $4.02 billion for the quarter, compared to the consensus estimate of $3.96 billion. CSX had a return on equity of 26.31% and a net margin of 23.97%. The company’s quarterly revenue was up 12.0% compared to the same quarter last year. During the same period in the prior year, the business posted $0.44 earnings per share.
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 Price Performance
Shares of CSX stock opened at $51.67 on Friday. CSX has a twelve month low of $33.63 and a twelve month high of $53.60. The company has a current ratio of 0.82, a quick ratio of 0.72 and a debt-to-equity ratio of 1.22. The stock has a fifty day simple moving average of $48.69 and a two-hundred day simple moving average of $47.59. The stock has a market capitalization of $95.72 billion, a price-to-earnings ratio of 29.87, a P/E/G ratio of 2.28 and a beta of 1.21.
CSX Dividend Announcement
The company also recently announced a quarterly dividend, which will be paid on Tuesday, December 15th. Shareholders of record on Monday, November 30th will be issued a $0.14 dividend. This represents a $0.56 annualized dividend and a dividend yield of 1.1%. The ex-dividend date is Monday, November 30th. CSX’s dividend payout ratio is currently 32.37%.
Analyst Ratings Changes
CSX has been the subject of a number of recent research reports. Royal Bank Of Canada reiterated an “outperform” rating and issued a $54.00 target price (up from $53.00) on shares of CSX in a report on Thursday. Truist Financial set a $46.00 price objective on shares of CSX in a research report on Friday, July 10th. Argus set a $56.00 price objective on shares of CSX in a research report on Friday, July 31st. TD Cowen reissued a “buy” rating and issued a $55.00 target price (up from $54.00) on shares of CSX in a research note on Thursday. Finally, Bank of America increased their target price on shares of CSX from $55.00 to $57.00 and gave the company a “buy” rating in a research note on Thursday. Eighteen equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and a consensus target price of $51.91.
Get Our Latest Stock Report on CSX
Trending Headlines about CSX
Here are the key news stories impacting CSX this week:
- Positive Sentiment: Q3 earnings beat estimates: CSX reported $4.02 billion in revenue, up 12% year over year, and diluted EPS of $0.57 versus the $0.53 consensus estimate. Net earnings reached $1.05 billion, while operating income rose 44% to $1.57 billion. CSX Corp. Announces Third Quarter 2026 Results
- Positive Sentiment: Volumes and margins improved: Total volume increased 5%, with intermodal volume up 7% to a record level. Higher pricing, freight activity and a 3% reduction in nonfuel costs supported an 880-basis-point expansion in operating margin to 39.1%. CSX: 3 Key Takeaways for Long-Term Investors
- Positive Sentiment: Positive outlook and analyst support: Management projected high-single-digit revenue growth for 2026 and is targeting more than 350 basis points of operating-margin expansion. Bank of America raised its price target to $57 with a Buy rating, while JPMorgan lifted its target to $58 and maintained an Overweight rating. CSX projects 2026 revenue growth
- Neutral Sentiment: Railroads are gaining a competitive advantage: Elevated fuel costs are affecting trucking companies more severely than rail operators, potentially supporting CSX freight demand and pricing. However, part of the revenue growth benefited from fuel surcharges, which may not fully represent underlying demand. US railroads pull ahead as high fuel costs hit truckers harder
- Negative Sentiment: Risks remain: Morgan Stanley kept a Sell rating and a $32 price target, citing valuation and long-term concerns. Separately, a law firm is investigating potential class-action claims related to a reported CSX data breach, which could create legal and reputational costs. CSX Sell Rating Maintained
CSX Company Profile
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.
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