$CSX · CSX CORP
CSX Corporation filed its Q3 FY2026 10-Q, reporting revenue of $4.017B (+12% YoY), operating income of $1.570B (+44%), and GAAP diluted EPS of $0.57 (+54%). Operating margin expanded to 39.1% from 30.3% a year ago, aided by the absence of a $164M goodwill impairment recorded in Q3 2025. Total volume rose 5% to 1.687 million units, with intermodal leading at +7% volume and +20% revenue growth.
- Revenue of $4.017B, up 12% YoY from $3.587B, driven by 5% volume growth and 7% revenue-per-unit increase.
- Operating income jumped 44% to $1.570B; operating margin expanded 880 bps to 39.1% from 30.3% a year ago.
- GAAP EPS of $0.57, up 54% from $0.37 in Q3 2025, aided by absence of prior-year $164M goodwill impairment.
- Fuel expense rose 60% to $451M from $281M, reflecting higher locomotive fuel costs; purchased services declined 10%.
- Share repurchases totaled $543M in Q3 (11.1M shares); nine-month buybacks reached $1.061B.
Extended-hours trading shows CSX at $50.30, up 3.93% from the regular-session close of $48.40. The strong margin expansion and 54% EPS growth are driving a positive after-hours reaction on the $89.66B market-cap name.
CSX's 880 bps operating margin expansion and 54% EPS growth signal powerful operating leverage in a freight cycle recovery, making this one of the strongest rail earnings prints this cycle.
CSX's 39.1% operating margin and 12% revenue growth outpace typical Class I rail peers, reflecting strong intermodal (+20% revenue) and merchandise (+11%) performance. The 880 bps margin expansion is exceptional even after adjusting for the prior-year goodwill impairment.
Fuel expense surged 60% YoY to $451M, a headwind that could pressure margins if locomotive fuel costs continue rising. The filing notes no material changes to risk factors from the 10-K, but the fuel cost trajectory bears watching given its direct impact on the rail segment's operating ratio.
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