CSX Shares Jump 4% After Earnings Beat Offsets Revenue Decline

Core Viewpoint - CSX's fourth-quarter earnings exceeded expectations despite a year-over-year revenue decline, leading to a more than 4% increase in share price intra-day [1]. Financial Performance - Adjusted earnings per share for Q4 2025 were reported at $0.42, surpassing analyst estimates of $0.41 [2]. - Revenue for the quarter totaled $3.51 billion, slightly below the consensus forecast of $3.55 billion, marking a 1% decrease from the previous year [2]. - Operating income for the quarter was $1.11 billion, resulting in an operating margin of 31.6%, down from an adjusted operating income of $1.21 billion and an adjusted operating margin of 34.3% in the same quarter last year [3]. Revenue Drivers - The decline in revenue was attributed to lower merchandise volumes and reduced export coal revenue, although these pressures were partially offset by higher pricing in merchandise and intermodal segments, increased intermodal volumes, and higher fuel surcharge revenue [3]. Full-Year Performance - For the full year 2025, CSX reported total revenue of $14.09 billion and adjusted operating income of $4.69 billion, excluding a $164 million goodwill impairment recorded in Q3 [4]. - The company achieved an adjusted operating margin of 33.2% for the year, with adjusted earnings per share of $1.61 [4].