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CSX Beats Earnings Expectations on Strong Volume Growth and Cash Flow Surge

CSX Corp. delivered second-quarter 2026 results that surpassed Wall Street forecasts. The company posted revenue growth of 3.1% year-over-year and earnings per share of $0.54, ahead of analyst consensus.

The Class I railroad demonstrated improved operational efficiency, with its operating ratio strengthening to 61.1% compared to the prior-year quarter. Free cash flow generation swung sharply positive, reaching $687 million this quarter versus a negative $115 million position in the same period last year.

Intermodal volumes proved to be a particular strength, reflecting broader demand recovery across consumer goods and industrial freight segments moving through the carrier's eastern network. CEO Steve Angel credited the railroaders' ability to manage substantial volume increases while maintaining safety and productivity standards. The company expects to strengthen service execution during the second half of 2026 as it builds on current momentum.