CSX Corporation Q1 Net Income Jumps 25% to $807 Million on Revenue Gain

CSX Corporation (NYSE: CSX), a major freight railroad operator, reported net income of $807 million for the quarter ending March 31, 2026, up 25% from $646 million in the year-earlier period. The earnings gain outpaced revenue growth as the company posted diluted earnings per share of $0.43, up from $0.34 a year ago. Read more earnings reports.

Revenue for the three months ending March 31 rose 2% to $3.48 billion from $3.42 billion in the first quarter of 2025. Operating income surged 20% to $1.25 billion compared to $1.04 billion in the prior-year quarter, reflecting improved operational efficiency.

Operating Performance

The railroad's operating margin expanded significantly during the quarter. Operating income reached $1.25 billion on revenue of $3.48 billion, compared to operating income of $1.04 billion on revenue of $3.42 billion in the same period last year. Income tax expense rose to $256 million from $212 million.

Labor and related expenses declined to $812 million from $821 million in the year-earlier quarter, even as the company grew revenue. The company reported operating cash flow of $1.27 billion for the quarter, up slightly from $1.26 billion a year ago.

Balance Sheet and Cash Flow

Total assets stood at $44.23 billion as of March 31, 2026, up from $43.68 billion at the end of December 2025. Cash and restricted cash increased to $964 million from $670 million at year-end 2025, though down from $1.14 billion in the year-earlier quarter.

The company used $567 million in investing activities during the quarter, down from $647 million in the first quarter of 2025. Cash used in financing activities totaled $411 million compared to $402 million in the prior-year period.

Current assets rose to $3.11 billion from $2.55 billion at the end of 2025, while current liabilities increased to $3.22 billion from $3.13 billion. Property, plant and equipment remained essentially flat at $36.82 billion compared to $36.81 billion at year-end.

Shareholder Returns

The company had 1.86 billion shares outstanding as of March 31, 2026, down from 1.88 billion at the end of the first quarter of 2025. Weighted average diluted shares decreased to 1.86 billion from 1.89 billion year-over-year.

Retained earnings climbed to $10.89 billion as of March 31, 2026, from $10.56 billion at the end of December 2025, reflecting the quarter's profit contribution.