CSX Corp. (NASDAQ:CSX) Reports Mixed Q3 2025 Results with EPS Beat and Revenue Miss

CSX Corp. (NASDAQ:CSX) reported its third-quarter 2025 financial results, delivering a mixed performance against analyst expectations. The railroad operator's earnings per share surpassed estimates, while revenue fell slightly short, creating a nuanced picture for investors. The market's immediate reaction appears cautiously optimistic, with the stock showing modest gains in after-hours trading.

Earnings and Revenue Performance

The company's non-GAAP earnings per share of $0.44 exceeded the consensus estimate of $0.4325, representing a positive surprise for investors. However, this figure represents a decline from the $0.46 per share reported in the same quarter last year. On the revenue front, CSX reported $3.59 billion, coming in below the $3.62 billion analysts had projected.

Key financial comparisons include:

• EPS Performance: Reported $0.44 (non-GAAP) versus estimated $0.4325
• Revenue Performance: Reported $3.59 billion versus estimated $3.62 billion
• Year-over-Year EPS Change: Down from $0.46 in Q3 2024
• Year-over-Year Revenue Change: Decreased 1% from prior year quarter

Operational Highlights and Management Commentary

The quarterly results were impacted by several one-time items, including a $164 million non-cash goodwill impairment that affected GAAP earnings. Excluding this impairment and $35 million in restructuring and advisory expenses, adjusted operating income reached $1.25 billion with an operating margin of 34.9%.

President and CEO Steve Angel emphasized the company's operational strengths, stating, "This quarter's operational performance reflects the dedication of our workforce and our commitment to running the best railroad in North America." He expressed confidence in CSX's positioning for long-term profitable growth, noting that the network is "operating well" with "clear opportunities to leverage that operational strength moving forward."

Volume trends showed modest improvement, with total volume reaching 1.61 million units, up 1% compared to the third quarter of 2024 and up 2% sequentially. The revenue decline was attributed primarily to lower export coal prices and decreased merchandise volume, partially offset by growth in intermodal volume, higher pricing in merchandise, and increases in other revenue categories.

Market Reaction and Forward Outlook

The stock's after-hours performance showed a gain of approximately 3.08%, suggesting investors are focusing on the earnings beat rather than the revenue miss. This positive movement aligns with the stock's recent momentum, which has seen gains of 3.54% over the past two weeks and 10.59% over the past month.

Looking ahead, analysts have established expectations for the coming periods:

• Q4 2025 Revenue Estimate: $3.65 billion
• Q4 2025 EPS Estimate: $0.45
• Full Year 2025 Revenue Estimate: $14.36 billion
• Full Year 2025 EPS Estimate: $1.69

While the press release did not provide specific quantitative guidance for future quarters, management's optimistic tone about leveraging operational strength suggests confidence in the company's ability to capitalize on market opportunities. The absence of detailed forward guidance is typical for CSX and does not inherently signal either positive or negative prospects.

For investors seeking more detailed earnings analysis and future estimates, additional information is available through the CSX earnings and estimates page.

Disclaimer: This article provides financial analysis for informational purposes only and does not constitute investment advice, recommendation, or endorsement of any particular security or investment strategy. Readers should conduct their own research and consult with a qualified financial advisor before making investment decisions.