CSX reported adjusted earnings per share of $0.42 for the fourth quarter of 2025, surpassing the consensus estimate of $0.41. This beat drove a more than 4% intraday share gain on Friday. While revenue declined 1% year over year to $3.51 billion—slightly below the $3.55 billion forecast—the company noted that severance programs and technology rationalization efforts accounted for approximately $50 million of expense in the quarter.

Operating income stood at $1.11 billion for the quarter, translating to a 31.6% operating margin. That compares with adjusted operating income of $1.21 billion and a 34.3% margin in the year-ago period, reflecting the impact of lower merchandise volumes and reduced export coal revenue. These headwinds were partly offset by higher pricing in the merchandise and intermodal segments, an increase in intermodal volumes, and elevated fuel surcharge revenue.

For the full year, CSX generated $14.09 billion in revenue, with adjusted operating income of $4.69 billion—excluding a $164 million goodwill impairment recorded in the third quarter. The company delivered a 33.2% adjusted operating margin and reported adjusted earnings per share of $1.61 for 2025. Management cited resilient intermodal demand and ongoing cost-management initiatives as key drivers of profitability improvement despite overall market softness.