Tech Program Intern 3 - Linehaul Analytics

XPO's higher Q3 volume, profit powered by SMB, grocery wins. Freight market recovery, customer service bolster shipments. Staff Reporter October 30, 2026 12:49 PM, EDT Volume growth remained consistently strong in Q3, with shipments per day rising 5.9% in July, 5.7% in August, and 5.7% in September. (XPO) Key takeaways: XPO turned wins among small- to medium-sized businesses and in the grocery segment of the less-than-truckload market into higher volumes and profits in the third quarter of 2026, executives said Oct. 29. Greenwich, Conn.-based XPO benefited from improved freight market conditions and customer service, the executives told analysts and investors during the company's Q3 earnings call. The company's shipments per day increased 5.8% year over year to 52,988 in Q3 from 50,094 a year earlier. Volume growth remained consistently strong in Q3, Chief Strategy Officer Ali Faghri told analysts, with shipments per day rising 5.9% in July, 5.7% in August, and 5.7% in September. The momentum continued into October, with preliminary shipments per day data showing an increase in the mid-7% range, he added. "We estimate it to be roughly around one-third market and two-thirds us in terms of growth," CEO Mario Harik said during the call. "What we are seeing here in the back half of the year is continued positivity and year-on-year positive demand from the customers." XPO reported total revenue of $2.37 billion in the most recent quarter, a 12.4% increase compared with the year-ago period's $2.11 billion. The company's LTL division posted a 17.4% year-over-year increase in revenue to $1.47 billion in Q3 from $1.26 billion a year earlier. The unit, the company's largest, saw a 36.5% jump in operating profit in Q3 to $284 million from $208 million. Overall, XPO's profit in the most recent quarter more than doubled to $181 million from $82 million in the same period 12 months earlier. "A lot of our growth has been driven by growing with the small to medium-sized customers," Harik told analysts. "These are mom and pop shops, typically shipping a few shipments a week, where service is essential. If you don't have a good service product, these customers don't want to do business with you." XPO onboarded 30% more new customers in the most recent quarter than in the same period in 2025, the company said. "Today, we have a low- to mid-single-digit market share in [the SMB] segment of business, and our overall market share in LTL is, call it 10%. So, there's a lot of room for us to get just to our existing market share size," said the company's top executive, noting that the company's service level lifted the potential ceiling. "When you look at grocery, when we started the year, we were at [roughly] 1% market share. By year-end, we will be up to 3%-4% market share of that segment of business. But that's a billion-dollar market that we are still in the early innings of penetrating as well," he added. XPO's service improvements over recent quarters, which the executives pointed out had bolstered its shipments, have been noted by customers. Bob Toews, CEO of TruckDown, discusses winter readiness in the connected fleet era. Tune in above or by going to RoadSigns.ttnews.com. In the 22nd edition of Mastio's U.S. LTL Carrier Customer Value and Loyalty Report, XPO was one of 12 carriers to exceed the industry benchmark. "If I had to pick on something where I thought a carrier that did exceptionally well from last year to this year and moved, [it] was XPO. XPO has really moved the needle on performance, and I know it's something they've been working on," Mastio President Kevin Huntsman told Transport Topics. Deutsche Bank analyst Richa Harnain noted the carrier ranked among the top two publicly traded carriers on metrics such as damage-free shipments and on-time performance. Harnain also noted that the 2026 results point to a changing competitive landscape among LTL carriers, with improvement at XPO and signs of slippage at several private peers. Looking forward, XPO executives expect increased market share, volume and weight per shipment due to the ongoing freight market rebound to further boost the company's profitability. A carrier's operating ratio provides insight on how well a company is balancing its costs and revenue generation. The lower the ratio, the better a company's performance. An OR of 80 is considered exceptional, with most LTL carriers returning an OR of between 85 and 90. XPO's adjusted operating ratio was 80.1 in Q3, compared with 82.7 in the year-ago period. XPO expects its fourth-quarter 2026 OR to remain below 82, compared with closer to 83 historically in the final three months of a year. Long term, the company is targeting an annual LTL operating ratio in the low 70s or better.

XPO (NYSE:XPO) releases earnings results, beats estimates by $0.12 EPS. XPO (NYSE:XPO - Get Free Report) posted its quarterly earnings results on Thursday. The transportation company reported $1.70 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.58 by $0.12, FiscalAI reports. The firm had revenue of $2.37 billion during the quarter, compared to the consensus estimate of $2.38 billion. XPO had a return on equity of 29.64% and a net margin of 4.71%. The firm's quarterly revenue was up 12.4% compared to the same quarter last year. During the same quarter in the previous year, the business 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. Shares of NYSE XPO traded up $1.03 during trading on Thursday, hitting $182.72. The company had a trading volume of 3,484,497 shares, compared to its average volume of 1,410,091. The business's 50-day moving average is $184.26 and its 200 day moving average is $195.77. The company has a market cap of $21.39 billion, a P/E ratio of 53.90, a PEG ratio of 1.83 and a beta of 1.85. XPO has a 52 week low of $124.82 and a 52 week high of $232.05. The company has a debt-to-equity ratio of 1.55, a quick ratio of 1.01 and a current ratio of 1.01. Key XPO news. Here are the key news stories impacting XPO this week: * Adjusted EPS exceeded expectations: XPO reported adjusted diluted earnings of $1.70 per share, up from $1.07 a year earlier and ahead of the roughly $1.58 consensus estimate. GAAP diluted EPS was $1.53, compared with $0.68 in the prior-year quarter. * Freight volumes and revenue strengthened: Third-quarter revenue rose 12.4% year over year to approximately $2.37 billion. North American less-than-truckload tonnage increased 5%, described as XPO's strongest performance in years, while LTL revenue including fuel surcharges grew 17%. * Margin improvement remains a key catalyst: Management highlighted additional room to improve margins through pricing discipline, higher-margin freight mix and operating efficiencies. The earnings beat was attributed largely to these initiatives, reinforcing expectations for continued earnings growth. * Revenue was broadly in line with expectations, with reported sales of $2.37 billion versus an estimated $2.38 billion. This makes the earnings beat more dependent on profitability and cost control than on an upside revenue surprise. * XPO's valuation remains demanding, with the stock trading at a high earnings multiple. Investors may therefore expect continued margin expansion and strong execution, leaving the shares vulnerable if freight demand or profitability momentum slows. Analyst ratings changes. XPO has been the subject of a number of research analyst reports. TD Cowen lifted their price target on shares of XPO from $224.00 to $228.00 and gave the stock a "buy" rating in a research note on Friday, July 31st. Stephens increased their price target on XPO from $255.00 to $270.00 and gave the stock an "overweight" rating in a research report on Friday, July 31st. Citigroup raised XPO from a "neutral" rating to a "buy" rating and raised their price target for the stock from $220.00 to $224.00 in a report on Wednesday, October 7th. Zacks Research lowered XPO from a "strong-buy" rating to a "hold" rating in a research report on Tuesday, September 29th. Finally, Weiss Ratings downgraded XPO from a "buy (b-)" rating to a "hold (c+)" rating in a research note on Tuesday, August 25th. One research analyst has rated the stock with a Strong Buy rating, nineteen have assigned a Buy rating, five have issued a Hold rating and one has issued a Sell rating to the company's stock. According to MarketBeat, XPO has an average rating of "Moderate Buy" and a consensus price target of $222.64. Insider buying and selling. In other XPO news, CFO Kyle Wismans sold 750 shares of XPO stock in a transaction that occurred on Thursday, October 1st. The shares were sold at an average price of $175.47, for a total transaction of $131,602.50. Following the transaction, the chief financial officer directly owned 47,966 shares in the company, valued at approximately $8,416,594.02. The trade was a 1.54% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CAO Christopher Brown sold 3,750 shares of the company's stock in a transaction on Tuesday, August 11th. The shares were sold at an average price of $201.94, for a total value of $757,275.00. Following the transaction, the chief accounting officer directly owned 31,005 shares in the company, valued at $6,261,149.70. The trade was a 10.79% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. In the last 90 days, insiders sold 11,730 shares of company stock valued at $2,208,974. Company insiders own 0.87% of the company's stock. 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. Receive News & Ratings for XPO Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for XPO and related companies with MarketBeat.com's FREE daily email newsletter.