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

XPO (NYSE:XPO) posted its quarterly earnings results on Thursday. The transportation company reported $0.88 earnings per share for the quarter, beating analysts’ consensus estimates of $0.76 by $0.12, FiscalAI reports. XPO had a return on equity of 26.14% and a net margin of 4.13%.The business had revenue of $2.01 billion for the quarter, compared to analysts’ expectations of $1.95 billion. During the same quarter in the prior year, the business earned $0.89 EPS. The firm’s revenue for the quarter was up 4.7% on a year-over-year basis.

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

• Strong Q4 results — company-wide Adjusted EBITDA of $312M and adjusted EPS of $0.88, with North American LTL adjusted operating income of $181M and a 180 bps improvement in LTL operating ratio; XPO says LTL margin has expanded ~590 bps since 2022.
• Pricing and mix gains — full-year yield excluding fuel grew ~6% and revenue per shipment improved for the 12th consecutive quarter, helped by expansion in local customers (now ~25% of revenue) and premium services (~12%).
• Productivity and tech-driven cost savings — productivity improved ~1.5 pts in 2025 (over 2 pts in H2), purchased transportation fell to a record 5.1% of miles, and XPO is scaling in-house AI route optimization (rolling to ~50% of service centers) targeting meaningful P&D and linehaul cost reductions.
• Balance sheet and capital allocation — operating cash flow $226M in Q4, year-end liquidity $910M, net leverage 2.4x; management expects accelerated free cash flow in 2026 to fund increased share repurchases and debt paydown (2026 CapEx guide $500–$600M).
• Volume weakness and cyclicality risk — shipments and tonnage were down year-over-year (Q4 shipments/day down 1.6%, weight/shipment down 3%, tonnage/day down 4.5%), reflecting industrial softness and leaving performance sensitive to demand recovery despite company-level share gains.

XPO Price Performance

Shares of NYSE:XPO traded up $7.21 during midday trading on Thursday, hitting $186.75. The stock had a trading volume of 4,498,055 shares, compared to its average volume of 1,637,313. The company’s 50-day moving average price is $146.16 and its 200-day moving average price is $136.26. XPO has a fifty-two week low of $85.06 and a fifty-two week high of $200.13. The company has a quick ratio of 1.02, a current ratio of 1.02 and a debt-to-equity ratio of 1.77. The company has a market capitalization of $21.92 billion, a P/E ratio of 67.49, a price-to-earnings-growth ratio of 3.09 and a beta of 2.01.

Analyst Upgrades and Downgrades

A number of research analysts recently commented on the stock. Benchmark upped their price target on shares of XPO from $150.00 to $165.00 and gave the company a “buy” rating in a research note on Friday, January 16th. Evercore ISI reiterated an “in-line” rating and set a $148.00 target price (down previously from $151.00) on shares of XPO in a research note on Monday, January 12th. JPMorgan Chase & Co. dropped their price target on XPO from $163.00 to $160.00 and set an “overweight” rating for the company in a report on Monday, January 12th. Truist Financial set a $145.00 price objective on XPO in a report on Tuesday, October 14th. Finally, Morgan Stanley lifted their target price on XPO from $83.00 to $90.00 and gave the stock an “underweight” rating in a report on Monday, December 8th. One research analyst has rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, four have issued a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $153.29.

Institutional Investors Weigh In On XPO

Large investors have recently modified their holdings of the business. Amundi boosted its stake in XPO by 50.7% in the first quarter. Amundi now owns 5,412 shares of the transportation company’s stock valued at $582,000 after buying an additional 1,820 shares in the last quarter. AQR Capital Management LLC boosted its stake in shares of XPO by 7.6% in the 1st quarter. AQR Capital Management LLC now owns 17,654 shares of the transportation company’s stock valued at $1,856,000 after purchasing an additional 1,243 shares in the last quarter. NewEdge Advisors LLC grew its holdings in shares of XPO by 3.2% during the 1st quarter. NewEdge Advisors LLC now owns 11,416 shares of the transportation company’s stock valued at $1,228,000 after purchasing an additional 355 shares during the last quarter. EverSource Wealth Advisors LLC lifted its stake in XPO by 35.8% in the 2nd quarter. EverSource Wealth Advisors LLC now owns 334 shares of the transportation company’s stock valued at $42,000 after purchasing an additional 88 shares during the last quarter. Finally, Marshall Wace LLP acquired a new stake in XPO in the second quarter valued at approximately $611,000. Institutional investors and hedge funds own 97.73% of the company’s stock.

About XPO

XPO Logistics, Inc is a global provider of transportation and logistics services, offering a broad portfolio of solutions designed to optimize supply chains for businesses of all sizes. The company’s operations span freight brokerage, less-than-truckload (LTL) shipping, full truckload transportation, last-mile delivery, contract logistics and global forwarding. XPO aims to leverage advanced technology and operational expertise to drive efficiency, visibility and reliability across end-to-end supply-chain networks.

In its freight brokerage segment, XPO connects shippers to a network of carriers through digital platforms that facilitate rate comparisons, booking, tracking and settlement.