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CSX beat Q2 estimates with EPS of 54 cents and revenues of $3.94B, up 22.7% and 10.1% year over year.
CSX growth was driven by higher fuel surcharge revenues & pricing gains across segments.
CSX raised its 2026 outlook, with mid to high single-digit revenue growth & operating margin expansion.
CSX Corporation (CSX - Free Report) reported impressive second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly earnings per share (EPS) of 54 cents surpassed the Zacks Consensus Estimate of 50 cents and increased 22.7% on a year-over-year basis.
Total revenues of $3.94 billion beat the Zacks Consensus Estimate of $3.82 billion. The top line increased 10.1% year over year, driven by higher fuel surcharge revenues, volume growth and pricing across merchandise, intermodal and coal. These were partially offset by a decrease in export coal revenues, including the impact of lower benchmark rates.
Second-quarter operating income increased 17% year over year to $1.51 billion. Total expenses increased 6% year over year. CSX’s operating margin expanded to 38.3% during the March quarter from 35.9% in the year-ago quarter. Total volumes inched up 6% year over year, boosted by 9% growth in intermodal volumes.
Q1 Segmental Performance of CSX
Merchandise revenues grew 8.4% year over year to $2.45 billion (above our estimate of $2.33 billion) in the reported quarter. Merchandise volumes rose 4% year over year to $670 million. Segmental revenues per unit inched up 4% year over year.
Intermodal revenues increased 26% year over year to $620 million (above our estimate of $547.1 million). Segmental volumes increased 9%, while revenues per unit rose 16% year over year.
Coal revenues improved 9% year over year to $520 million in the reported quarter (above our estimate of $506.7 million). Coal volumes inched up 4% year over year, while segmental revenues per unit increased 4% year over year.
Trucking revenues totaled $226 million (above our estimate of $190.6 million) and rose 7% year over year. Other revenues fell 11% year over year to $123 million in the reported quarter.
CSX’s Liquidity
CSX exited the second quarter of 2026 with cash and cash equivalents of $1 billion compared with $670 million at the end of the fourth quarter of 2025. Long-term debt of $17.16 billion compared with $18.17 at the quarter end of 2025.
CSX's 2026 Guidance
For 2026, CSX now expects mid-to high single-digit revenue growth (including fuel, based on the current forward curve for diesel) compared with its prior guidance of mid-single digit revenue growth.
Operating margin expansion is now anticipated to exceed 350 basis points compared with the previous expectation of around the higher end of the 200-300 basis points range.
Free cash flow is now anticipated to increase more than 80% compared with the prior expectation of growth of more than 60%.
For the full-year 2026, CSX continues to expect capital expenditures to be below $2.4 billion.
Westinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.
Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.
Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.
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CSX Q2 Earnings & Revenues Beat Estimates, Up Y/Y, EPS View Raised
Key Takeaways
CSX Corporation (CSX - Free Report) reported impressive second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.
Quarterly earnings per share (EPS) of 54 cents surpassed the Zacks Consensus Estimate of 50 cents and increased 22.7% on a year-over-year basis.
Total revenues of $3.94 billion beat the Zacks Consensus Estimate of $3.82 billion. The top line increased 10.1% year over year, driven by higher fuel surcharge revenues, volume growth and pricing across merchandise, intermodal and coal. These were partially offset by a decrease in export coal revenues, including the impact of lower benchmark rates.
CSX Corporation Price, Consensus and EPS Surprise
CSX Corporation price-consensus-eps-surprise-chart | CSX Corporation Quote
Second-quarter operating income increased 17% year over year to $1.51 billion. Total expenses increased 6% year over year. CSX’s operating margin expanded to 38.3% during the March quarter from 35.9% in the year-ago quarter. Total volumes inched up 6% year over year, boosted by 9% growth in intermodal volumes.
Q1 Segmental Performance of CSX
Merchandise revenues grew 8.4% year over year to $2.45 billion (above our estimate of $2.33 billion) in the reported quarter. Merchandise volumes rose 4% year over year to $670 million. Segmental revenues per unit inched up 4% year over year.
Intermodal revenues increased 26% year over year to $620 million (above our estimate of $547.1 million). Segmental volumes increased 9%, while revenues per unit rose 16% year over year.
Coal revenues improved 9% year over year to $520 million in the reported quarter (above our estimate of $506.7 million). Coal volumes inched up 4% year over year, while segmental revenues per unit increased 4% year over year.
Trucking revenues totaled $226 million (above our estimate of $190.6 million) and rose 7% year over year. Other revenues fell 11% year over year to $123 million in the reported quarter.
CSX’s Liquidity
CSX exited the second quarter of 2026 with cash and cash equivalents of $1 billion compared with $670 million at the end of the fourth quarter of 2025. Long-term debt of $17.16 billion compared with $18.17 at the quarter end of 2025.
CSX's 2026 Guidance
For 2026, CSX now expects mid-to high single-digit revenue growth (including fuel, based on the current forward curve for diesel) compared with its prior guidance of mid-single digit revenue growth.
Operating margin expansion is now anticipated to exceed 350 basis points compared with the previous expectation of around the higher end of the 200-300 basis points range.
Free cash flow is now anticipated to increase more than 80% compared with the prior expectation of growth of more than 60%.
For the full-year 2026, CSX continues to expect capital expenditures to be below $2.4 billion.
Currently, CSX carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Q2 Performances of Other Transportation Companies
Westinghouse Air Brake Technologies (WAB - Free Report) , operating as Wabtec Corporation, reported encouraging second-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate and increased year over year.
Quarterly adjusted earnings of $2.76 per share beat the Zacks Consensus Estimate of $2.63 by 4.9% and increased 21.6% year over year, owing to higher sales and operating margin expansion.
Revenues climbed 17.5% to $3.18 billion and surpassed the consensus mark of $3.08 billion by 3.2%.
United Airlines Holdings, Inc. (UAL - Free Report) reported second-quarter 2026 adjusted earnings of $1.99 per share, down 48.6% year over year but above the Zacks Consensus Estimate of $1.92 by 3.7%.
Operating revenues rose 16% to $17.67 billion and were essentially in line with the $17.68 billion consensus mark. A 12.1% increase in total revenues per available seat mile or TRASM, and broad-based gains across premium, loyalty and cargo revenues, supported the top line despite sharply higher fuel costs.
J.B. Hunt Transport Services, Inc. (JBHT - Free Report) reported second-quarter 2026 earnings of $1.91 per share, up 45.8% from $1.31 a year ago. The figure beat the Zacks Consensus Estimate of $1.71 by 11.7%.
Operating revenues climbed 19.4% year over year to $3.50 billion and surpassed the consensus mark of $3.19 billion by 9.5%. Higher volumes and pricing across several businesses supported growth, led by a 10% increase in Intermodal loads.