XPO (NYSE:XPO) Announces Quarterly Earnings Results, Beats Estimates By $0.12 EPS

XPO (NYSE:XPO) issued its quarterly earnings data on Thursday. The transportation company reported $1.70 EPS for the quarter, beating the consensus estimate of $1.58 by $0.12, FiscalAI reports. The company had revenue of $2.37 billion during the quarter, compared to analysts’ expectations of $2.38 billion. XPO had a net margin of 5.69% and a return on equity of 32.80%. XPO’s revenue for the quarter was up 12.4% on a year-over-year basis. During the same quarter in the previous year, the company earned $1.07 earnings per share.

Here are the key takeaways from XPO’s conference call:

• Strong quarterly performance: Revenue rose 12% year over year to $2.4 billion, adjusted EBITDA increased 27% to $433 million, and adjusted diluted EPS grew 59% to $1.70.
• North American LTL momentum accelerated: LTL revenue grew 17%, adjusted operating income rose 35% to a record $293 million, and the adjusted operating ratio improved 260 basis points to 80.1%. Management expects fourth-quarter OR below 82% and now projects full-year improvement of 250 basis points or better.
• Volume and pricing trends strengthened: Third-quarter shipments per day increased 5.8%, while October shipments and tonnage were up in the mid-7% and mid-6% ranges, respectively. October yield excluding fuel was tracking up 5%, and management expects pricing and volume growth to accelerate in the fourth quarter.
• Efficiency and capacity investments are supporting margins: AI tools reduced rehandles, improved routing and labor productivity, and contributed to a 20% year-over-year reduction in damages. XPO also has more than 30% excess door capacity and has reduced outsourced line-haul miles to 5.6%, limiting exposure to higher truckload rates.
• Cash generation is enabling shareholder returns: XPO generated $291 million of third-quarter free cash flow and expects to approach $800 million for 2026, more than doubling 2025 levels. The company repurchased $250 million of stock year to date and paid down $275 million of debt, while reiterating expectations for accelerating free cash flow and margin expansion in 2027.

XPO Price Performance

XPO stock traded up $6.80 during midday trading on Friday, reaching $189.81. The company had a trading volume of 2,058,126 shares, compared to its average volume of 1,190,078. The company has a debt-to-equity ratio of 1.52, a current ratio of 0.99 and a quick ratio of 1.01. XPO has a 1 year low of $124.82 and a 1 year high of $232.05. The company has a market capitalization of $22.22 billion, a P/E ratio of 44.77, a P/E/G ratio of 1.81 and a beta of 1.85. The firm has a 50-day moving average price of $183.82 and a 200-day moving average price of $196.17.

Analysts Set New Price Targets

XPO has been the subject of a number of recent analyst reports. Bank of America boosted their price target on shares of XPO from $228.00 to $230.00 and gave the company a “buy” rating in a research report on Friday, October 2nd. Oppenheimer increased their price objective on XPO from $236.00 to $238.00 and gave the stock an “outperform” rating in a research report on Friday, July 31st. Wells Fargo & Company dropped their price objective on XPO from $250.00 to $230.00 and set an “overweight” rating for the company in a research note on Friday. Citizens Jmp began coverage on XPO in a research note on Wednesday, July 15th. They set a “market perform” rating for the company. Finally, Jefferies Financial Group restated a “buy” rating and set a $275.00 target price on shares of XPO in a research report on Friday. One research analyst has rated the stock with a Strong Buy rating, nineteen have issued a Buy rating, five have issued a Hold rating and one has given a Sell rating to the company’s stock. According to data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $221.45.

Insider Transactions at XPO

In other XPO news, CAO Christopher Brown sold 3,750 shares of XPO stock in a transaction dated Tuesday, August 11th. The stock was sold at an average price of $201.94, for a total transaction of $757,275.00. Following the completion of the sale, the chief accounting officer owned 31,005 shares of the company’s stock, valued at $6,261,149.70. The trade was a 10.79% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Kyle Wismans sold 750 shares of the company’s stock in a transaction dated Thursday, October 1st. The stock was sold at an average price of $175.47, for a total value of $131,602.50. Following the completion of the transaction, the chief financial officer owned 47,966 shares of the company’s stock, valued at $8,416,594.02. The trade was a 1.54% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 11,730 shares of company stock valued at $2,208,974 in the last quarter. Insiders own 0.87% of the company’s stock.

Key Stories Impacting XPO

Here are the key news stories impacting XPO this week:

• Positive Sentiment: Quarterly earnings beat expectations. XPO reported adjusted diluted EPS of $1.70, up from $1.07 a year earlier and above the $1.58 analyst consensus. Revenue rose 12.4% year over year to $2.37 billion, broadly in line with estimates. XPO Reports Third Quarter 2026 Results
• Positive Sentiment: Operating momentum strengthened. North American less-than-truckload tonnage increased 5%, the company’s best performance in years, while revenue including fuel surcharges climbed 17%. Pricing actions and operating initiatives helped drive margin improvement, with management indicating there is additional room for gains. After Another Strong Quarter, XPO Sees More Room for Margin Improvements
• Positive Sentiment: Analyst targets remain bullish. TD Cowen raised its target from $228 to $230 and assigned a “buy” rating, while Citigroup increased its target from $224 to $229 and also rated the stock “buy.” Both targets imply more than 20% potential upside from the referenced price. TD Cowen XPO recommendations
• Neutral Sentiment: Wells Fargo reduced its target but retained a positive view. The firm lowered its price target from $250 to $230 while maintaining an “overweight” rating, suggesting tempered expectations rather than a bearish change in stance. Wells Fargo XPO recommendations
• Negative Sentiment: Valuation and recent gains remain risks. Commentary noted that XPO’s stock has already risen substantially, potentially limiting near-term upside. Its elevated earnings multiple means further appreciation depends on continued freight growth, margin expansion and execution.

About XPO

XPO, Inc is a transportation and logistics company that provides freight-moving services to businesses across North America and Europe. Its operations are centered on less-than-truckload (LTL) transportation, which involves consolidating shipments from multiple customers onto a single truck and is commonly used for freight that does not require a full trailer.

In North America, XPO provides regional, interregional and national LTL services, along with related offerings such as freight pickup and delivery, shipment visibility and technology-enabled transportation management.