CSX Corporation said on 21 October that it earned operating income of $1.57 billion and net earnings of $1.05 billion, or $0.57 per diluted share, in the third quarter of 2026. In the third quarter of 2025, the Jacksonville-based railroad reported operating income of $1.09 billion and net earnings of $694 million, or $0.37 per diluted share.
According to the company’s results release, revenue was $4.02 billion, up 12% on the same quarter a year earlier. CSX described this as record quarterly revenue. It attributed the increase to higher fuel surcharge revenue together with higher volume and pricing across its merchandise, intermodal and coal businesses.
Margin and Comparisons
CSX said operating income rose 44% and that its operating margin widened by 880 basis points to 39.1%. The release also gave a second comparison that strips out a one-off item. Last year’s results included a non-cash goodwill impairment of $164 million. Excluding that charge from the 2025 figures, CSX said operating income increased 25%, net earnings increased 29% and earnings per share increased 30%.
The two sets of numbers answer different questions. The headline rises compare 2026 with the figures CSX actually reported last year, while the smaller rises compare with last year’s results after the impairment is removed.
Volume
Total volume for the quarter was 1.69 million units, which the company said was 5% higher than in the third quarter of 2025. Intermodal volume, which covers containers and trailers moved between rail and other forms of transport, increased by 7%, according to the release.
Steve Angel, CSX’s president and chief executive officer, said in the release that disciplined execution helped the railroad move more freight and deliver strong earnings growth. He said the company looks forward to continued progress in 2027 and described CSX as well positioned entering the fourth quarter. The release did not set out numerical guidance.
Why It Matters
Railroads carry a wide range of goods, from coal and industrial materials to retail containers, so quarterly volume and revenue figures are a useful if imperfect indicator of how much freight is moving through the US economy. In this report, CSX attributed its revenue growth to a mix of fuel surcharges, volume and pricing, which means the 12% increase did not come from volume alone. Readers comparing the results with other companies should note which basis is being used: the company reported both a straight year-on-year comparison and one that excludes last year’s impairment.
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