XPO's third quarter 2026 adjusted EPS of $1.70 beats estimates as LTL margins expand

XPO reported third quarter 2026 results featuring a significant beat on adjusted earnings and operating margins. While revenue of $2.37 billion was roughly in line with expectations, adjusted diluted EPS of $1.70 comfortably surpassed the $1.58 consensus. Performance was spearheaded by the North American Less-Than-Truckload (LTL) segment, which achieved an adjusted operating ratio of 80.1%, outperforming management's previous guidance.

Key Highlights

• North American LTL adjusted operating ratio improved by 260 basis points year-over-year to 80.1%, driven by yield growth and AI-enabled efficiency gains.
• LTL segment volume remained robust with shipments per day increasing 5.8% and tonnage per day rising 5.0% compared to the prior year.
• Adjusted EBITDA grew 26.6% to $433 million, reflecting improved revenue quality and a damage claims ratio that remains below 0.2%.
• The company generated $415 million in cash flow from operations and utilized $150 million for share repurchases during the quarter.