CSX

CSX reported a 30% increase in earnings per share in Q3 2026, driven by operational efficiency and volume growth. The railroad achieved a 5% volume increase while reducing nonfuel costs by 3%, expanded operating margins by over 4 percentage points, and reached all-time record intermodal volumes up 7% year-over-year. Management projects full-year operating margin expansion of more than 350 basis points and free cash flow growth exceeding 80%, supported by pricing discipline and structural advantages from infrastructure improvements.

CSX reported Q3 2026 revenue of $4.02 billion, up 12% year-over-year and beating consensus estimates by 1.66%. EPS of $0.57 exceeded expectations by 9.62%.

However, the operating margin of 39.1% significantly underperformed analyst estimates of 62.7%. Most revenue segments showed growth, though fertilizer revenue declined 6.4% year-over-year. The stock has outperformed the S&P 500 over the past month but carries a Zacks Rank #3 (Hold) rating.

CSX is set to report Q3 2026 earnings on Oct. 21 with EPS estimated at 53 cents, up 20.45% year-over-year, and revenues expected to rise 10.35% to $3.96 billion. However, rail network disruptions, high labor costs, and coal sector headwinds pose challenges. The company's Earnings ESP of -2.23% and Zacks Rank #3 suggest no conclusive earnings beat is predicted.