XPO Reports Third Quarter 2026 Results
XPO, Inc. (XPO) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 XPO Reports Third Quarter 2026 Results GREENWICH, Conn. – October 29, 2026 – XPO (NYSE: XPO) today announced its financial results for the third quarter 2026. The company reported diluted earnings per share of $1.53, compared with $0.68 for the same period in 2025, a
How this was made
The 30-second read
Why it matters
The earnings release provides fresh quantitative data that can shift valuation models and short‑term trading sentiment.
Market read
First‑report earnings for a large‑cap logistics firm; likely to move the stock and influence sector sentiment.
What to watch
Higher fuel costs and wage inflation could pressure margins in upcoming quarters.
XPO Reports Third Quarter 2026 Results
Third-quarter revenue increased 12.4%, GAAP operating income increased 75.6%, adjusted EBITDA increased 26.6% and adjusted diluted EPS increased 58.9%, led by North American LTL volume, yield and margin improvement.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Revenue — Three Months Ended September 30GAAP | $2.37B | – | 12.4% |
| Operating income — Three Months Ended September 30GAAP | $288M | – | 75.6% |
| Net income — Three Months Ended September 30GAAP | $181M | – | 120.7% |
| Diluted earnings per share — Three Months Ended September 30GAAP | $1.53 | – | 125.0% |
| Basic earnings per share — Three Months Ended September 30GAAP | $1.55 | – | – |
| Diluted weighted-average common shares outstanding — Three Months Ended September 30GAAP | 118M | – | – |
| Adjusted net income — Three Months Ended September 30non-GAAP | $200M | – | – |
| Adjusted diluted earnings per share — Three Months Ended September 30non-GAAP | $1.70 | – | 58.9% |
| Adjusted EBITDA — Three Months Ended September 30non-GAAP | $433M | – | 26.6% |
| Adjusted EBITDA margin — Three Months Ended September 30non-GAAP | 18.2% | – | – |
| Adjusted EBITDA, excluding gains on real estate transactions — Three Months Ended September 30non-GAAP | $432M | – | 26.3% |
| Cash flow from operating activities — Three Months Ended September 30GAAP | $415M | – | – |
| Revenue — Nine Months Ended September 30GAAP | $6.82B | – | 11.0% |
| Operating income — Nine Months Ended September 30GAAP | $733M | – | 42.9% |
| Net income — Nine Months Ended September 30GAAP | $444M | – | 72.8% |
| Diluted earnings per share — Nine Months Ended September 30GAAP | $3.75 | – | – |
| Adjusted net income — Nine Months Ended September 30non-GAAP | $522M | – | – |
| Adjusted diluted earnings per share — Nine Months Ended September 30non-GAAP | $4.41 | – | – |
| Adjusted EBITDA — Nine Months Ended September 30non-GAAP | $1.19B | – | 23.5% |
| Adjusted EBITDA margin — Nine Months Ended September 30non-GAAP | 17.4% | – | – |
| Net cash provided by operating activities — Nine Months Ended September 30GAAP | $906M | – | – |
| Payment for purchases of property and equipment — Nine Months Ended September 30GAAP | −$369M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North American Less-Than-Truckload Segment — Three Months Ended September 30The increase in adjusted EBITDA reflects yield growth, higher tonnage per day, cost efficiencies and higher fuel surcharge revenue, partially offset by higher fuel costs and wage inflation. | $1.47B | – | 17.4% |
| European Transportation Segment — Three Months Ended September 30The increase in adjusted EBITDA reflects higher revenue and cost efficiencies, partially offset by higher fuel costs. | $900M | – | 5.0% |
| Corporate — Three Months Ended September 30Operating loss was $8 million, compared with a loss of $42 million for the same period in 2025. | $- million | – | 0.0% |
Capital returns
- $150 million of common stock repurchases in the third quarter
- $100 million of term loan repayments in the third quarter
- $250 million of repurchase of common stock for the nine months ended September 30, 2026
- $(1,085) million of repayment of debt for the nine months ended September 30, 2026
What drove it
- North American LTL yield, excluding fuel, increased 3.6% year-over-year.
- North American LTL shipments per day increased 5.8% year-over-year.
- North American LTL tonnage per day increased 5.0% year-over-year.
- North American LTL revenue excluding fuel surcharge revenue increased 8.5% to $1,150 million.
- North American LTL fuel surcharge revenue increased 66.5% to $323 million.
- North American LTL adjusted operating income increased 35.0% to $293 million.
- North American LTL adjusted operating ratio was 80.1%, compared with 82.7%.
- North American LTL adjusted EBITDA margin was 26.4%, compared with 24.5%.
- European Transportation adjusted operating income increased 144.4% to $22 million.
- European Transportation adjusted EBITDA increased 26.3% to $48 million.
Concerns
- Higher fuel costs and wage inflation partially offset North American LTL adjusted EBITDA growth.
- Higher fuel costs partially offset European Transportation adjusted EBITDA growth.
- European Transportation operating income was $12 million, following an operating loss of $2 million in the prior-year period.
- North American LTL average weight per shipment declined 0.7% to 1,293 pounds.
- North American LTL total average load factor declined 1.2% to 22,164.
- North American LTL adjusted EBITDA included higher fuel surcharge revenue, while fuel surcharge revenue increased 66.5% to $323 million.
What to watch
- North American LTL yield, excluding fuel, which increased 3.6% year-over-year in the third quarter.
- North American LTL shipment and tonnage trends, which increased 5.8% and 5.0%, respectively.
- North American LTL adjusted operating ratio after the 260 basis-point year-over-year improvement to 80.1%.
- The effect of fuel costs, fuel surcharge revenue and wage inflation on segment profitability.
- European Transportation's ability to sustain positive operating income and expand its 5.3% adjusted EBITDA margin.
- Cash flow conversion and capital returns following $415 million of third-quarter cash flow from operating activities, $123 million of net capital expenditures and $150 million of common stock repurchases.
Balance sheet and cash flow
- Cash and cash equivalents were $260 million as of September 30, 2026, compared with $310 million as of December 31, 2025.
- Long-term debt was $2,995 million as of September 30, 2026, compared with $3,253 million as of December 31, 2025.
- Short-term borrowings and current maturities of long-term debt were $129 million as of September 30, 2026, compared with $60 million as of December 31, 2025.
- Total assets were $8,308 million as of September 30, 2026, compared with $8,194 million as of December 31, 2025.
- Total equity was $1,973 million as of September 30, 2026, compared with $1,861 million as of December 31, 2025.
- The company completed $123 million of net capital expenditures in the third quarter.
- Net cash used in investing activities was $(331) million for the nine months ended September 30, 2026, compared with $(532) million for the same period in 2025.
- Cash, cash equivalents and restricted cash, end of period, was $284 million for the nine months ended September 30, 2026, compared with $341 million for the same period in 2025.
Analysis
XPO reported broad third-quarter growth. Revenue increased 12.4% to $2,373 million, GAAP operating income increased 75.6% to $288 million and net income increased 120.7% to $181 million. Diluted EPS was $1.53, compared with $0.68. The prior-year quarter included a $35 million charge related to environmental and product liability claims involving a former subsidiary of Con-way, which contributed to the scale of the GAAP operating-income and net-income comparisons.
Non-GAAP earnings growth was also strong. Adjusted EBITDA increased 26.6% to $433 million and adjusted EBITDA margin was 18.2%, compared with 16.2%. Adjusted net income was $200 million and adjusted diluted EPS was $1.70, compared with $128 million and $1.07, respectively. For the first nine months, revenue increased 11.0% to $6,823 million, adjusted EBITDA increased 23.5% to $1,186 million and adjusted EBITDA margin was 17.4%, compared with 15.6%.
North American LTL was the principal growth contributor. Segment revenue increased 17.4% to $1,473 million, including an 8.5% increase in revenue excluding fuel surcharge revenue and a 66.5% increase in fuel surcharge revenue. Yield excluding fuel increased 3.6%, shipments per day increased 5.8% and tonnage per day increased 5.0%. Adjusted operating income increased 35.0% to $293 million, while the adjusted operating ratio improved to 80.1% from 82.7%. Adjusted EBITDA increased 26.3% to $389 million, with yield growth, volume, cost efficiencies and fuel surcharge revenue partly offset by higher fuel costs and wage inflation.
European Transportation revenue increased 5.0% to $900 million and operating income was $12 million, compared with a loss of $2 million. Adjusted EBITDA increased 26.3% to $48 million and adjusted EBITDA margin was 5.3%, compared with 4.5%. The segment cited higher revenue and cost efficiencies, partially offset by higher fuel costs. Corporate operating loss narrowed to $8 million from $42 million, while corporate adjusted EBITDA remained a loss of $4 million.
Cash generation and capital allocation were active in the quarter. XPO generated $415 million of cash flow from operating activities, completed $123 million of net capital expenditures, repurchased $150 million of common stock and repaid $100 million of term loans. Cash and cash equivalents were $260 million at quarter-end, while long-term debt was $2,995 million. The release did not provide forward financial guidance, so the next reported evidence on demand, LTL margin progression, fuel and wage costs, European profitability, cash conversion and additional capital returns will be central.
Management, verbatim
We delivered another quarter of outstanding performance, accelerating growth in adjusted EBITDA to 27% and adjusted diluted EPS to 59% year-over-year.
Mario Harik, chairman and chief executive officer of XPO
In North American LTL, we grew adjusted operating income by 35% year-over-year and improved our adjusted operating ratio by 260 basis points, significantly outperforming seasonality.
Mario Harik, chairman and chief executive officer of XPO
Our strong performance across North America and Europe underscores the substantial opportunities we have to continue compounding our earnings growth, with further upside as freight demand recovers.
Mario Harik, chairman and chief executive officer of XPO
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Forward EPS or adjusted EBITDA guidance
- Prior-period outlook for comparison
- Gross margin
- Consolidated GAAP operating margin
- Free cash flow as a reported measure
- Dividend declaration or dividend payment
- Prior-quarter comparisons for reported financial metrics
- CFO commentary
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
XPO is a leading less‑than‑truckload (LTL) freight carrier in North America and Europe.
Ticker impact
Q3 2026 earnings released via 8‑K show revenue $2.37 B, operating income $288 M and diluted EPS $1.53, up 125% YoY.
upward pressure as market prices in earnings beat and margin expansion.
Revenue and EPS both surged year‑over‑year; adjusted EBITDA grew 27% and operating income rose 75%, indicating better profitability.
Market effects
LTL freight sector may see broader rally on XPO's strong performance.
North American logistics market gains confidence from XPO's growth.
European transportation segment also posted profit, supporting broader European logistics outlook.
Counterpoint
If guidance falls short of market expectations, the stock could face a pull‑back despite the beat.
Key entities
- ExecutiveMario Harik
Chairman and CEO of XPO, quoted on performance.
