CSX
FY2026 Q2 · Calendar Q3 2026
CSX Corporation
CSX delivered a record second quarter with revenue rising 10% on 6% volume growth, expanding operating margins by 240 basis points and driving 23% EPS growth. The beat was powered by intermodal revenue growth of 26%, benefiting from truck capacity constraints and new infrastructure capacity from the Howard Street Tunnel. Management raised full-year guidance for the second consecutive quarter, now projecting mid-to-high single-digit revenue growth, over 350 bps of margin expansion, and greater than 80% free cash flow growth. The stock's approximately 7% abnormal move on 2.4x baseline volume signals the market endorsed the operating leverage story, though subsequent drift of approximately -3.7% suggests some profit-taking. The key question ahead is whether service metrics can stabilize as crew shortages persist and modest headcount additions are absorbed.
EPS surprise+4.2%
Market move+5.8%
