CSX (CSX) kept its momentum going, with Q2 topping expectations and the company raising its 2026 outlook, RBC Capital Markets said in a Thursday note.

The company reported fiscal Q2 net earnings late Wednesday of $0.54 per diluted share, up from $0.44 a year earlier, as revenue increased to $3.94 billion from $3.57 billion. RBC said the period saw solid operating leverage, backed by strong volumes.

For 2026, CSX now expects a mid- to high-single digit growth in revenue, from mid-single digit previously, and for margins to improve over 350 basis points from the previous forecast of 200 to 300 basis points, according to the note.

The increased outlook reflects robust volumes and fuel surcharge revenue, RBC said. CSX is also seeing significant truck to rail conversion, which buoyed the company's intermodal revenue, the investment firm added.

RBC raised its price target on CSX to $54 from $51, with an outperform rating.

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