XPO Reports Strong Q3 2026 Earnings Growth

Executive Summary

On October 29, 2026, XPO, Inc. (NYSE: XPO) filed a Current Report on Form 8-K under Item 2.02 (Results of Operations and Financial Condition) and Item 9.01 (Financial Statements and Exhibits), announcing financial results for the third quarter ended September 30, 2026.

Key Financial Highlights

• Consolidated Revenue: Totaled $2.373 billion, up 12.4% compared to $2.111 billion in Q3 2025.
• Operating Income: Increased 75.6% year-over-year to $288 million compared to $164 million in the prior-year period.
• Net Income & EPS: Net income was $181 million ($1.53 diluted EPS), up 120.7% from $82 million ($0.68 diluted EPS) in Q3 2025.
• Adjusted Diluted EPS (Non-GAAP): Reached $1.70, reflecting a 58.9% increase from $1.07 in Q3 2025.
• Adjusted EBITDA (Non-GAAP): Rose 26.6% year-over-year to $433 million versus $342 million in Q3 2025.

Segment Performance

1. North American Less-Than-Truckload (LTL):

   • Revenue: $1.473 billion, up 17.4% year-over-year from $1.255 billion.
   • Operating Income: $284 million (+36.5% YoY).
   • Adjusted Operating Ratio: 80.1%, showing a 260 bps improvement.
   • Operational Metrics: Yield excluding fuel rose 3.6%, daily shipments increased 5.8%, and daily tonnage expanded 5.0%.

2. European Transportation:

   • Revenue: $900 million, up 5.0% year-over-year from $857 million.
   • Operating Income: $12 million, recovering from an operating loss of $(2) million in Q3 2025.
   • Adjusted EBITDA: $48 million, up 26.3% from $38 million in Q3 2025.

3. Corporate:

   • Operating loss narrowed significantly to $(8) million compared to $(42) million in Q3 2025 (prior year included a $35 million legal/environmental charge).

Cash Flow & Capital Allocation

• Operating Cash Flow: Generated $415 million in operating cash flow during the quarter.
• Capital Expenditures: Net capex of $123 million.
• Capital Returns & Debt Repayment: Repurchased $150 million in common stock and executed $100 million in term loan repayments.
• Cash Position: Ended the quarter with $260 million in cash and cash equivalents.