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CSX Q1 EPS beat estimates at 43 cents, rising 26% YoY, while revenue missed despite 2% growth.
CSX saw gains from pricing, intermodal growth, and lower costs, lifting operating margin to 36%.
CSX raised its 2026 outlook with higher revenue growth, margin expansion, and over 60% free cash flow growth.
CSX Corporation (CSX - Free Report) reported mixed first-quarter 2026 results wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the mark.
Quarterly earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 39 cents and increased 26% on a year-over-year basis. Results were aided by revenue growth and a reduction in operating expenses.
Total revenues of $3.48 billion missed the Zacks Consensus Estimate of $3.51 billion. The top line increased 2% year over year on the back of higher merchandise pricing, intermodal volume growth, higher domestic coal revenue and increased fuel surcharge revenue. These were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.
First-quarter operating income increased 20% year over year to $1.25 billion. Total expenses decreased 6% year over year. CSX’s operating margin during the March quarter rose to 36% from 30.4% in the year-ago quarter. Total volumes inched up 3% year over year, boosted by intermodal volumes.
Q1 Segmental Performance of CSX
Merchandise revenues grew 2% year over year to $2.18 billion (matched with our estimate figure) in the reported quarter. Merchandise volumes rose marginally to $631 million. Segmental revenue per unit inched up 2% year over year.
Intermodal revenues increased 5% year over year to $518 million (below our estimate of $551.5 million). Segmental volumes increased 6% while revenue per unit was down 1% year over year.
Coal revenues slid 1% year over year to $458 million in the reported quarter. Coal volumes inched down 1% year over year, while segmental revenue per unit fell marginally.
Trucking revenues totaled $202 million (above our estimate of $183.4 million), flat year over year. Other revenues rose 1% year over year to $116 million in the reported quarter.
CSX’s Liquidity
CSX exited the first quarter of 2026 with cash and cash equivalents of $964 million compared with $670 million at the end of the prior quarter. Long-term debt of $18.2 billion was flat sequentially.
CSX's 2026 Guidance
For 2026, CSX now expects mid-single digit revenue growth (including fuel, based on the current forward curve for diesel) compared with the prior guidance of low single-digit revenue growth.
Operating margin expansion is now anticipated toward the higher end of the 200-300 basis point range, while previously it was expected to be around 200-300 basis points.
Free Cash flow is now anticipated to increase more than 60% compared with the prior expectation of growth of at least 50%.
CSX continues to expect capital expenditures to be below $2.4 billion.
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
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CSX Q1 Earnings Beat Estimates, Revenues Lag, 2026 View Raised
Key Takeaways
CSX Corporation (CSX - Free Report) reported mixed first-quarter 2026 results wherein earnings surpassed the Zacks Consensus Estimate while revenues missed the mark.
Quarterly earnings per share of 43 cents surpassed the Zacks Consensus Estimate of 39 cents and increased 26% on a year-over-year basis. Results were aided by revenue growth and a reduction in operating expenses.
Total revenues of $3.48 billion missed the Zacks Consensus Estimate of $3.51 billion. The top line increased 2% year over year on the back of higher merchandise pricing, intermodal volume growth, higher domestic coal revenue and increased fuel surcharge revenue. These were partially offset by a decrease in export coal revenue, including the impact of lower benchmark rates.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
First-quarter operating income increased 20% year over year to $1.25 billion. Total expenses decreased 6% year over year. CSX’s operating margin during the March quarter rose to 36% from 30.4% in the year-ago quarter. Total volumes inched up 3% year over year, boosted by intermodal volumes.
Q1 Segmental Performance of CSX
Merchandise revenues grew 2% year over year to $2.18 billion (matched with our estimate figure) in the reported quarter. Merchandise volumes rose marginally to $631 million. Segmental revenue per unit inched up 2% year over year.
Intermodal revenues increased 5% year over year to $518 million (below our estimate of $551.5 million). Segmental volumes increased 6% while revenue per unit was down 1% year over year.
Coal revenues slid 1% year over year to $458 million in the reported quarter. Coal volumes inched down 1% year over year, while segmental revenue per unit fell marginally.
Trucking revenues totaled $202 million (above our estimate of $183.4 million), flat year over year. Other revenues rose 1% year over year to $116 million in the reported quarter.
CSX’s Liquidity
CSX exited the first quarter of 2026 with cash and cash equivalents of $964 million compared with $670 million at the end of the prior quarter. Long-term debt of $18.2 billion was flat sequentially.
CSX's 2026 Guidance
For 2026, CSX now expects mid-single digit revenue growth (including fuel, based on the current forward curve for diesel) compared with the prior guidance of low single-digit revenue growth.
Operating margin expansion is now anticipated toward the higher end of the 200-300 basis point range, while previously it was expected to be around 200-300 basis points.
Free Cash flow is now anticipated to increase more than 60% compared with the prior expectation of growth of at least 50%.
CSX continues to expect capital expenditures to be below $2.4 billion.
Currently, CSX carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q1 Performances of Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents. Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
United Airlines Holdings, Inc. (UAL - Free Report) reported solid first-quarter 2026 results wherein the company’s earnings and revenues beat the Zacks Consensus Estimate as well as improved on a year-over-year basis.
UAL's first-quarter 2026 adjusted earnings per share (EPS) (excluding 95 cents from non-recurring items) of $1.19 surpassed the Zacks Consensus Estimate of $1.08 and increased 30.8% on a year-over-year basis. The reported figure lies within the guided range of $1.00-$1.50.
Operating revenues of $14.6 billion outpaced the Zacks Consensus Estimate of $14.3 billion and increased 10.5% year over year. Passenger revenues (which accounted for 90.1% of the top line) increased 11% year over year to $13.1 billion. UAL flights transported 42,486 passengers in the first quarter, up 4.1% year over year.
Cargo revenues fell 1.6% year over year to $422 million. Revenues from other sources rose 10.5% year over year to $1.02 billion.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by $0.04, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.