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CSX Lifts 2026 Outlook After Q1 Beat as Intermodal Growth Widens Margins

The move signals confidence in lasting margin gains.

Overview

  • CSX, which reported results Wednesday, posted $3.48 billion in revenue, $807 million in net earnings at 43 cents a share, and a 36% operating margin.
  • Executives credited strong intermodal demand and firm pricing for the quarter and outlined modal-shift efforts and projects like block‑mode engineering and the near‑complete Howard Street Tunnel to extend gains.
  • Management raised its full‑year view to mid‑single‑digit revenue growth with operating margin expansion toward the high end of a 200 to 300 basis‑point range and projected much stronger free cash flow.
  • Fuel expense rose 9.8% to $302 million as diesel costs climbed, though CSX said fuel surcharges pass most of that cost to customers over time.
  • Shares rose about 5% Thursday after the earnings beat as BofA, Goldman Sachs, BMO and Benchmark raised price targets.