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

XPO (NYSE:XPO) announced its quarterly earnings data 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 net margin of 3.87% and a return on equity of 25.07%. The firm had revenue of $2.01 billion during the quarter, compared to analysts’ expectations of $1.95 billion. During the same quarter in the previous year, the business posted $0.89 earnings per share. The business’s quarterly revenue was up 4.7% compared to the same quarter last year.

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 Stock Up 9.8%

Shares of XPO stock opened at $203.82 on Friday. The company has a current ratio of 1.05, a quick ratio of 1.02 and a debt-to-equity ratio of 1.75. XPO has a 1 year low of $85.06 and a 1 year high of $204.13. The stock has a 50-day moving average price of $148.28 and a 200 day moving average price of $137.12. The company has a market cap of $23.92 billion, a P/E ratio of 76.91, a P/E/G ratio of 3.37 and a beta of 2.01.

Institutional Inflows and Outflows

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

Analyst Ratings Changes

Several equities analysts have issued reports on the company. Morgan Stanley reiterated an “underweight” rating and set a $95.00 target price on shares of XPO in a research report on Thursday. Evercore ISI set a $200.00 price objective on XPO in a research report on Friday. Stifel Nicolaus raised their price target on XPO from $166.00 to $206.00 and gave the stock a “buy” rating in a research note on Friday. BMO Capital Markets reissued an “outperform” rating and set a $205.00 price objective on shares of XPO in a research note on Thursday. Finally, Wells Fargo & Company upped their price target on shares of XPO from $147.00 to $205.00 and gave the stock an “overweight” rating in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, four have assigned a Hold rating and two have given a Sell rating to the stock. According to MarketBeat, the company presently has an average rating of “Moderate Buy” and a consensus target price of $174.52.

XPO News Roundup

Here are the key news stories impacting XPO this week:

• Positive Sentiment: XPO beat fourth-quarter estimates on both revenue and adjusted EPS (reported $0.88 adj. EPS vs. $0.76 consensus; revenue $2.01B vs. $1.95B est.), which validates near-term operating strength and drove buying interest. GlobeNewswire: XPO Reports Fourth Quarter 2025 Results
• Positive Sentiment: Management signaled an industrial demand recovery in early innings — CEO remarks and the earnings presentation highlight improving volumes in industrial end markets, which supports upside to revenue and utilization. Yahoo Finance: XPO CEO Interview
• Positive Sentiment: XPO outlined $500M–$600M of planned 2026 capex tied to AI-driven productivity and explicit margin-expansion initiatives — this suggests management is investing to boost throughput and margins, a favorable signal for future profitability. Seeking Alpha: Capex & Margin Plans
• Positive Sentiment: Macro tailwinds referenced by commentators — including a pickup in manufacturing activity per the ISM — are cited as a catalyst that could further lift freight volumes and pricing power. Coverage noting the stock’s strong YTD performance highlights investor momentum. Fool: This Stock Is Already Up 40% This Year
• Neutral Sentiment: JPMorgan raised its price target from $160 to $189 and kept an “overweight” rating — the raise is a positive signal from a major sell-side shop, though the new target remains below the current market level, implying mixed near-term analyst expectations. Benzinga: Analyst Note
• Neutral Sentiment: Company materials (earnings slide deck and call presentation) are available and provide more color on segment trends and guidance; these items help investors model forward performance but contain no material surprises beyond the quarter and capex plan. XPO Earnings Slide Deck
• Negative Sentiment: On a GAAP basis, diluted EPS declined (reported $0.50 vs. $0.63 a year ago), and adjusted EPS was roughly flat year-over-year — a reminder that profitability still faces headwinds and that some of the upside is tied to execution of margin initiatives. GlobeNewswire: Q4 Results

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.