CSX is trading sharply higher Thursday after reporting a solid first-quarter 2026 result that beat expectations and improved the company’s outlook for the year. The key driver is a better-than-expected earnings print paired with an upward revision to revenue growth expectations, which investors are treating as evidence that operational and cost initiatives are translating into improved profitability.

CSX reported Q1 net income of $807 million, or $0.43 per share, up from $646 million, or $0.34 per share, a year earlier. Revenue rose 2% to $3.48 billion, and expenses fell 6% to $2.2 billion, supporting a 25% year-over-year profit increase; results also included a $44 million gain on real-estate sales. Management said it now expects mid-single-digit revenue growth in 2026, up from prior low-single-digit growth guidance.

After the report, analysts moved quickly to reflect the improved margin and cash-generation backdrop, with multiple firms lifting price targets. The upgrades are centered on cost improvements and a better operating-ratio trajectory, reinforcing the post-earnings bullish momentum in the stock.