Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
CSX delivered strong Q1 FY2026 results with revenue up 1.7% to $3.48B while operating income surged 20.4% to $1.25B, driving operating margin expansion of ~560 basis points to 36.0% and net income growth of 24.9% to $807M.
Revenue
$3.48B
+1.72% YoY
EPS (Diluted)
$0.43
+26.47% YoY
Operating Income
$1.25B
+20.37% YoY
Source: SEC XBRL
Csx (CSX) reported Q1 FY2026 revenue of $3.48B, up 1.7% year over year. Operating margin was 36.0%, up 5.6 points from 30.4% a year earlier. Operating cash flow was $1.27B, up 1.4% year over year. CSX's fiscal Q1 FY2026 corresponds to calendar Q1 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026 | 0.54 | 0.52 | Beat +3.4% |
| Mar 2026This filing | 0.43 | 0.39 | Beat +9.2% |
| Dec 2025 | 0.39 | 0.42 | Miss -6.1% |
| Sep 2025 | 0.44 | 0.43 | Beat +2.4% |
Reported EPS of $0.43 versus the $0.39 analyst consensus — a +9.2% beat for Mar 2026.
Compiled by AI from this SEC filing
CSX grew total revenue by 1.7% year-over-year to $3.482B in Q1 FY2026, reflecting steady demand across its freight network despite a modest top-line increase, suggesting pricing power and/or volume gains contributed to the improvement.
Source: 10-Q Income Statement Data
Operating income jumped 20.4% to $1.253B while operating margin expanded approximately 560 basis points from 30.4% to 36.0%, indicating significant efficiency improvements and cost discipline that allowed revenue growth to flow through at a much higher rate to operating profit.
Source: 10-Q Income Statement Data
Net income grew 24.9% to $807M and basic EPS rose 26.5% from $0.34 to $0.43, with EPS growth exceeding net income growth likely due to share count reduction from ongoing buyback activity, demonstrating strong bottom-line execution.
Source: 10-Q Income Statement and Cash Flow Data
Operating cash flow remained robust at $1.272B (+1.4% YoY), comfortably covering capital expenditures implied by investing outflows of $567M, and supporting continued shareholder returns through dividends and buybacks, though buybacks declined sharply by 70.4% to $222M versus $751M in the prior year period.
Source: 10-Q Cash Flow Statement Data
Total liabilities declined 1.2% to $30.651B while total assets grew 2.4% to $44.232B, reflecting a healthier balance sheet profile; current liabilities fell 5.8% to $3.221B, partially offsetting a current ratio slightly below 1.0 at 0.97.
Source: 10-Q Balance Sheet Data
Compiled by AI from this SEC filing · 2 high, 2 medium, 1 low
CSX's current ratio stands at approximately 0.97, meaning current liabilities of $3.221B slightly exceed current assets of $3.111B. While common for capital-intensive railroads that rely on long-term financing and strong operating cash flows, this leaves limited short-term liquidity buffer if operating conditions deteriorate unexpectedly.
Source: 10-Q Balance Sheet Data
Railroads require continuous heavy capital investment to maintain and upgrade track, equipment, and technology. Investing cash outflows of $567M in Q1 FY2026 alone highlight the ongoing capital intensity, and any cost overruns or regulatory-mandated upgrades could pressure free cash flow and returns.
Source: 10-Q Cash Flow Statement Data
Total liabilities of $30.651B represent approximately 69% of total assets of $44.232B, indicating a highly leveraged balance sheet typical of the railroad industry but leaving CSX exposed to interest rate risk and refinancing risk, particularly in a higher-for-longer rate environment.
Source: 10-Q Balance Sheet Data
Share buybacks declined dramatically by 70.4% year-over-year to $222M in Q1 FY2026 from $751M in Q1 FY2025, which may signal a strategic shift in capital allocation priorities or constraints on discretionary cash deployment, potentially disappointing investors who valued aggressive buyback programs.
Source: 10-Q Cash Flow Statement Data
With revenue growing only 1.7% despite a 20%+ jump in operating income, CSX's profitability is highly sensitive to cost structure management; any volume softness driven by economic slowdown, trade disruptions, or fuel cost spikes could disproportionately impact margins given the fixed-cost nature of railroad operations.
Source: 10-Q Income Statement Data
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.48 $B | 3.42 $B | +1.72% |
Operating Income $B | 1.25 $B | 1.04 $B | +20.37% |
Net Income $M | 807.00 $M | 646.00 $M | +24.92% |
EPS (Basic) $ | 0.43 $ | 0.34 $ | +26.47% |
EPS (Diluted) $ | 0.43 $ | 0.34 $ | +26.47% |
Answers draw on this SEC filing and the data on this page
In Q2 FY2026, CSX grew revenue 10% YoY to $3.935B and operating income 17% to $1.506B, expanding operating margin by 240bps to 38.3% on higher volume, pricing and fuel surcharge recovery, while diluted EPS rose 23% to $0.54.
CSX reported a challenging FY2025 with revenue declining 3.1% to $14.09B and net income falling 16.7% to $2.89B, reflecting significant margin compression as operating margin dropped roughly 400 basis points to 32.1%.
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