CSX reports stronger earnings as rail freight and intermodal volumes grow
CSX Corporation reported stronger financial and operational performance in the third quarter of 2026, with higher rail freight volumes, increased intermodal activity and improved profitability across its business.
The Jacksonville, Florida-based railroad operator recorded record quarterly revenue of $4.02 billion, representing a 12% increase compared with the corresponding period in 2025. Operating income rose to $1.57 billion from $1.09 billion, while net earnings reached $1.05 billion, compared with $694 million a year earlier.
Diluted earnings per share increased to $0.57 from $0.37, while the company’s operating margin expanded by 880 basis points to 39.1%.
Revenue growth reflected increased fuel surcharge revenue, alongside higher volumes and pricing across the merchandise, intermodal and coal segments.
Rail freight and intermodal volumes increase
CSX handled approximately 1.69 million units during the third quarter, an increase of 5% compared with the same period in 2025.
Intermodal volumes recorded stronger growth, rising by 7% year-on-year. The increase contributed to the company’s overall freight performance, alongside higher activity in its merchandise and coal businesses.
The results indicate increased freight movements across CSX’s rail network during the quarter, with intermodal transportation contributing to the expansion in overall traffic.
The company also reported improved pricing across its principal freight categories, supporting revenue growth alongside the increase in transported volumes.
CSX President and Chief Executive Officer Steve Angel attributed the quarterly performance to disciplined operational execution, increased freight movements and continued attention to safety and service standards.
The company said its operational progress had positioned it to continue improving performance during the fourth quarter and into 2027.
Profitability strengthens despite prior-year comparison effects
CSX reported a 44% increase in operating income on a reported basis, while net earnings rose by approximately 51% compared with the third quarter of 2025.
However, the year-earlier results included a non-cash goodwill impairment charge of $164 million, which affected the comparison between the two periods.
Excluding that impairment, CSX’s adjusted operating income for the third quarter of 2025 was $1.25 billion, while adjusted net earnings stood at $818 million and adjusted diluted earnings per share reached $0.44.
Compared with those adjusted figures, third-quarter 2026 operating income increased by 25%, net earnings rose by 29% and diluted earnings per share improved by 30%.
The results therefore reflect both stronger underlying financial performance and the impact of the impairment charge recorded during the previous year.
The company’s operating margin of 39.1% represented a substantial improvement over the corresponding period, supported by higher revenue and operating income.
CSX targets further operational progress
The latest quarterly results come as CSX continues to focus on operational performance, customer service and the efficiency of its freight transportation network.
The increase in total freight volumes, together with stronger intermodal activity, contributed to the company’s record quarterly revenue. Higher pricing and fuel surcharge revenue also supported the financial results.
Angel indicated that the company intends to maintain its operational momentum as it enters the final quarter of 2026, with further progress toward its performance objectives expected in 2027.
CSX has not provided specific fourth-quarter revenue or earnings guidance in the earnings announcement.
The company’s third-quarter performance highlights the contribution of rail freight and intermodal transportation to its financial results, alongside improved pricing and operational profitability.
