$XPO · XPO, Inc.
XPO reported Q3 2026 results with revenue of $2.37B (+12.4% YoY), net income of $181M (+120.7% YoY), GAAP diluted EPS of $1.53, and adjusted diluted EPS of $1.70 (+58.9% YoY). North American LTL drove the outperformance with 17.4% revenue growth and a 260 bps adjusted operating ratio improvement to 80.1%.
- Adjusted diluted EPS of $1.70, up 58.9% YoY from $1.07 in Q3 2025.
- Consolidated revenue of $2.37B, up 12.4% YoY, driven by North American LTL segment growth of 17.4%.
- North American LTL adjusted operating ratio improved 260 bps YoY to 80.1%.
- Net income of $181M, up 120.7% YoY from $82M in Q3 2025.
- Company repurchased $150M of common stock and repaid $100M of term loan in the quarter.
Markets closed — no regular-session reaction yet. Extended-hours last trade at $181.25, down 0.24% from the regular close of $181.69, suggesting a muted initial response to the strong beat.
XPO's 59% adjusted EPS growth and 260 bps margin expansion in a still-soft freight market signal structural earnings power that could compound further when the cycle turns.
XPO's 260 bps adjusted OR improvement in North American LTL significantly outpaces typical seasonal patterns, suggesting market share gains from competitors like FedEx Freight and Old Dominion during a still-soft freight environment.
Forward-looking statement risks include freight demand recovery uncertainty, wage inflation, fuel cost volatility, and potential goodwill impairment. Restructuring costs of $36M year-to-date reflect ongoing business optimization initiatives.