Summary of CSX FY Conference Call - February 19, 2026 Company Overview - **Company**: CSX Corporation (NasdaqGS:CSX) - **Industry**: Railroad and Transportation Key Points and Arguments Industry Insights - **AI and Automation**: The railroad industry is expected to benefit from AI and automation, particularly in proposal preparation, customer service, and asset management. Traditional industries may gain the most from these technologies [7][8][9] - **Global Growth Outlook**: The speaker expressed skepticism about growth in major global markets, noting that China is no longer a growth engine and Europe has historically not contributed significantly to growth. The U.S. is viewed as the best bet for sustained growth despite current tariff uncertainties [10][11][12] - **Reindustrialization**: There is potential for reindustrialization in the U.S., but it is not expected to manifest significantly in 2026. The speaker remains cautiously optimistic about long-term prospects [12] Company Performance and Strategy - **Cultural Insights**: The new CEO, Steve, highlighted the strong culture at CSX, characterized by long-tenured employees who are passionate about their work. This culture is seen as a positive for leadership and operational stability [20][21] - **Operational Challenges**: CSX faced significant operational challenges due to natural disasters, including the loss of a 60-mile rail corridor. Recovery efforts have been successful, with major infrastructure projects completed, leading to improved operational fluidity [23][25] - **Leadership Changes**: The CEO has made thoughtful changes to the executive leadership team, focusing on leadership skills and the ability to drive results. The importance of having the right people in critical positions was emphasized [26][28] M&A and Industry Dynamics - **M&A Landscape**: The CEO supports M&A in the industry, citing his experience with the Praxair and Linde merger. He acknowledged that consolidation can create both risks and opportunities for existing players like CSX [31][32] - **Regulatory Environment**: The merger process is lengthy and complex, with significant regulatory scrutiny. The CEO emphasized the need to focus on running CSX effectively while navigating these challenges [33][36] Financial Metrics and Performance Goals - **Financial Guidance**: CSX is targeting low single-digit revenue growth, with a focus on increasing operating margins by 200-300 basis points and free cash flow by 50%. The CEO emphasized the importance of cost management over aggressive revenue growth [51][52] - **Key Performance Metrics**: The CEO highlighted operating income growth, operating margin percentage, and safety as critical metrics for accountability. Return on capital and total shareholder return are also emphasized for long-term performance [62][65][68] Customer Feedback and Service Improvement - **Customer Engagement**: Customers are keeping their options open regarding service providers, indicating a cautious approach to commitments amid industry changes. Consistency in service is identified as a key area for improvement [42][48] - **Service Challenges**: The CEO acknowledged that while improvements have been made, there is still significant room for growth in service consistency and operational performance [46][47] Conclusion - The CEO expressed confidence in CSX's ability to navigate current challenges and capitalize on future opportunities, emphasizing a balanced approach to growth, operational excellence, and employee engagement [75][76]

Group 1 - The article discusses the market from various perspectives, focusing on AI disruption, economic growth, and cyclical recovery that have positively impacted investment portfolios [1] - Leo Nelissen is identified as a long-term investor and macro-focused strategist, emphasizing dividend growth and high-quality compounders [1] - The approach combines macro analysis with stock research to identify businesses with strong cash-flow potential [1] Group 2 - The article does not provide specific financial data or performance metrics related to companies or industries [2][3]

Speaking to ET Now, Bandyopadhyay said the valuation gap between PSU banks and private lenders remains significant and could narrow further, making current levels still attractive for long-term investors.PSU banks: Valuation gap yet to closeDespite the recent surge in the PSU Banking Index, Bandyopadhyay believes the re-rating story is not over.“There is still a meaningful valuation gap between PSU banks and private peers. I am not saying they will command the same valuation multiples as He highlighted Liv ...

CrowdStrike Holdings Inc (NASDAQ:CRWD) shares are taking a dip today. Truist Securities cut its price target on the company and reiterated its Buy rating. Here’s what you should know.CrowdStrike Holdings stock is among today’s weakest performers. Why are CRWD shares down?What The Note ShowedTruist analyst Junaid Siddiqui trimmed its price target on CrowdStrike to $550 from $600 but left its revenue and operating‑income forecasts unchanged. The only tweak came in free‑cash‑flow expectations, with the firm nu ...

The US stock market opened lower on February 17, 2026. It is the first session after Presidents’ Day, with the S&P 500 trading around 6,840 at press time. The Index is down approximately 0.65% (around 44 points) from Friday's high, but up almost 0.58% since today's open. This hints at buyers stepping in across sectors. Persistent "SaaSpocalypse" fears that AI will disrupt traditional software and tech models continue to pressure the market. This makes Information Technology the weakest sector, down 1.5% i ...

Group 1 - CrowdStrike, C.H. Robinson, and Compass are identified as stocks that have been unfairly impacted by concerns over AI disruption [1] - Analysts suggest that the market's reaction to these companies is exaggerated and does not reflect their underlying fundamentals [1] - The fear of AI disruption has led to a mispricing of these stocks, presenting potential investment opportunities [1]

Market Overview - The U.S. equity markets are experiencing a mixed performance with a divergence between growth-oriented technology shares and defensive sectors as traders return from the Presidents Day holiday [1] - The Dow Jones Industrial Average (DJI) is up approximately 28 points, or 0.1%, near the 49,500 level, while the Nasdaq Composite (IXIC) is down about 0.2% at 22,546 [2] - The S&P 500 (SPX) remains virtually unchanged, oscillating around its 100-day moving average of 6,836 [2] Sector Performance - The Technology Select Sector SPDR (XLK) is under pressure as investors de-risk from high-multiple software names, while defensive and cyclical sectors are providing support [3] - The Utilities Select Sector SPDR (XLU) has gained 1.5%, indicating strong performance in defensive sectors, while Financials are also outperforming due to stabilizing comments from Federal Reserve officials [3] Technology Sector Developments - Concerns about "AI disruption" are prevalent, with fears of a "SaaS-pocalypse" affecting software giants; Salesforce (CRM) fell 2.6%, Intuit (INTU) declined 5%, and Oracle (ORCL) dropped 4% [4] - Nvidia (NVDA) remains a focal point in the semiconductor space, trading up 1.3% ahead of its critical earnings report next week, while Advanced Micro Devices (AMD) and Micron (MU) are down 2% and 2.6%, respectively [5] Consumer Sector Insights - General Mills (GIS) stock plunged 6.9% after cutting its full-year profit forecast due to "uneasy" customers and a slowdown in household spending [6] - Medtronic (MDT) slipped 2.5% despite beating quarterly estimates, as management warned of potential headwinds from upcoming tariff implementations [6] Mergers and Acquisitions - Danaher (DHR) shares dropped 6% following the announcement of a nearly $10 billion acquisition of Masimo (MASI), whose shares surged 35% on the news [7] - Warner Bros. Discovery (WBD) rose 2.9% amid reports of seeking a "best and final" buyout offer from Paramount (PARA) [7] Economic Data and Upcoming Events - January retail sales were flat, indicating a cautious outlook from major retailers, while the Empire State Manufacturing Index for February reached +7.1, slightly missing expectations but remaining in expansionary territory [8] - Upcoming earnings reports from Palo Alto Networks (PANW) and Devon Energy (DVN) are anticipated to provide insights into cybersecurity spending and energy demand [9] - The Federal Reserve will release minutes from its recent policy meeting, which may offer clues regarding future rate cuts following a moderation in the Consumer Price Index (CPI) to 2.4% [9]

Economic Indicators - December capital goods new orders (nondefense ex-aircraft and parts) are expected to increase by +0.4% month-over-month, indicating potential growth in capital spending [1] - January manufacturing production is anticipated to rise by +0.4% month-over-month [1] - Initial weekly unemployment claims are projected to decline by -2,000 to 225,000 [1] - The December trade deficit is expected to widen to -$86.0 billion [1] - Q4 GDP is expected to expand by +3.0% quarter-over-quarter annualized [1] - The December core PCE price index is expected to rise by +0.3% month-over-month and +2.9% year-over-year [1] Corporate Earnings - Nearly three-quarters of S&P 500 companies have reported Q4 earnings, with 76% beating expectations [7] - S&P earnings growth is projected to climb by +8.4% in Q4, marking the tenth consecutive quarter of year-over-year growth [7] - Excluding the Magnificent Seven megacap technology stocks, Q4 earnings are expected to increase by +4.6% [7] Stock Market Movements - Major stock indexes, including the Dow Jones, reversed earlier losses to trade higher, with the S&P 500 Index up +0.29%, Dow Jones up +0.18%, and Nasdaq 100 Index up +0.38% [6] - Software stocks are experiencing declines amid speculation of AI disruption, with Crowdstrike Holdings down more than -6% and Intuit down more than -5% [12] - Silver and gold mining stocks are falling, with gold prices down more than 3% and silver prices down more than 6% [13] Company-Specific News - Genuine Parts Co is down more than -12% after reporting Q4 net sales of $6.01 billion, weaker than the consensus of $6.06 billion [15] - General Mills is down more than -8% after lowering guidance on its full-year organic net sales forecast [15] - Vulcan Materials is down more than -7% after forecasting full-year adjusted EBITDA below consensus [16] - Danaher is down more than -2% after reports of a nearly $10 billion acquisition deal for Masimo [17] - ZIM Integrated Shipping Services is up more than +30% after Hapag-Lloyd AG announced a cash deal to buy the company [18]

Core Viewpoint - Cisco (CSCO) experienced a 9.4% decline in stock price over the past week despite beating earnings expectations, attributed to market fears regarding AI disruption. Analysts maintain a target price of $88.81, indicating a potential upside of 16% from current levels [1]. Financial Performance - Cisco reported earnings of $1.04 per share, exceeding the consensus estimate of $1.02, with revenue of $15.35 billion, reflecting an 8.5% year-over-year increase, although it slightly missed the target of $15.42 billion [1]. - Operating cash flow fell 19% year-over-year to $1.82 billion, raising concerns about financial health [1][2]. Market Sentiment - The stock's decline is linked to a shift in investor valuation of networking and software companies, with fears of a "SaaSpocalypse" where AI could disrupt traditional business models [1]. - Seven senior executives, including the CEO, sold $3.05 million in stock on earnings day, which negatively impacted market perception [1]. Analyst Outlook - Despite the recent selloff, 17 out of 26 analysts maintain a Buy or Strong Buy rating for Cisco, with no Sell ratings. The average target price of $88.81 suggests significant upside potential [1]. - KeyBanc has a Buy rating with a target of $87, while a bullish analyst projects a target of $182 based on AI infrastructure refresh cycles [1]. Growth Catalysts - Cisco secured $2.1 billion in AI infrastructure orders, indicating strong demand from hyperscalers [1]. - A campus networking refresh cycle is underway, with product orders increasing by 18% year-over-year, and the next-generation firewall market is projected to grow at a 12% annual rate through 2031 [1]. Valuation Metrics - Cisco's forward P/E ratio is 18x, significantly lower than its trailing P/E of 28x, suggesting expectations of earnings growth. The PEG ratio stands at 1.3, indicating reasonable valuation relative to its 31% year-over-year earnings growth [1]. - The company offers a 2.2% dividend yield and is engaged in aggressive buybacks, appealing to value-oriented investors [1].

The CNBC app, global market news in one place. Customizable sections and personalized alerts, stocks tracking, interactive charts and market insights, all in your hands. Stay connected, stay informed, download the CNBC app today.Uh, >> a very warm welcome to this Tuesday edition of Squawk Europe European. I'm Steve Sedick with Ben Bulos. Risk Gup will join us as well.Okay, these are your headlines. European equity futures point lower as Wall Street comes back online after the President's Day holiday with th ...