XPO (XPO) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 12.4% YoY to $2.373B; adjusted EBITDA increased 26.6% to $433M and adjusted diluted EPS rose 58.9% to $1.70.

• North American LTL growth and margin expansion led results; European Transportation also increased adjusted EBITDA.

Financial highlights

• Operating income was $288M versus $164M YoY; net income was $181M versus $82M, and diluted EPS was $1.53 versus $0.68.

• Adjusted net income was $200M versus $128M; adjusted EBITDA was $433M versus $342M.

• Q3 operating cash flow was $415M; free cash flow was $291M and net capital expenditures were $123M.

• 9M revenue was $6.823B versus $6.146B; operating income was $733M versus $513M, and net income was $444M versus $257M.

Outlook and guidance

• Q4 LTL adjusted operating ratio is expected below 82%; FY 2026 OR improvement is projected at 250 bps or better.

• Q4 yield and revenue per shipment, excluding fuel, are expected to improve sequentially and accelerate YoY; October yield growth tracked at 5% and revenue per shipment growth at 4%.

• October shipments per day were preliminarily expected up in the mid-7% range and tonnage per day in the mid-6% range; Q4 tonnage growth is expected to accelerate from October's 6.5% YoY.

• 2026 free cash flow is expected to at least double from 2025, near $800M; gross capex guidance is $500M–$600M.

• Long-term LTL operating ratio target is low 70s or better; 2027 is expected to bring strong earnings growth and margin expansion.