XPO, Inc. reported first‑quarter 2026 results that surpassed consensus estimates, with revenue of $2.10 billion, up 7.3% year‑over‑year, and adjusted diluted earnings per share of $1.01, a 38% increase from the same period in 2025. Adjusted EBITDA rose 15% to $319 million, and the adjusted operating ratio improved to 83.9%, a 200‑basis‑point gain over the prior quarter. North American LTL revenue reached $1.23 billion, while European Transportation revenue grew to $868 million.
The earnings beat was driven by a combination of cost discipline and operational leverage. AI‑powered route optimization reduced damage claims to a record low of less than 0.2% and cut operating costs, while profitable market‑share gains and above‑market pricing in the core LTL segment lifted revenue. These efficiencies translated into a 15% rise in adjusted EBITDA and a 38% jump in adjusted EPS, exceeding the consensus of $0.89 per share and $2.04 billion in revenue.
Compared with the same quarter last year, revenue grew from $1.95 billion to $2.10 billion, and adjusted EPS climbed from $0.73 to $1.01. The prior quarter, Q4 2025, reported revenue of $2.01 billion and adjusted EPS of $0.88, indicating that the company is accelerating its growth trajectory rather than merely maintaining momentum.
North American LTL continued to be the engine of performance, with revenue of $1.23 billion and an adjusted EBITDA margin that improved 230 basis points to 23.6%. The segment’s adjusted operating ratio reached 83.9%, a 200‑basis‑point improvement year‑over‑year. In contrast, European Transportation posted an 11% revenue increase to $868 million but recorded an operating loss of $6 million, underscoring ongoing margin pressure in that region.
Management highlighted the results, stating, "We reported a strong start to 2026, with 38% growth in adjusted diluted EPS and 15% growth in adjusted EBITDA, year-over-year. These results mark an acceleration in our performance and the momentum we're building across the business." He added, "In North American LTL, we increased adjusted operating income by 20% year-over-year and improved our adjusted operating ratio by 200 basis points to 83.9%, significantly outperforming seasonality." The CEO also noted, "This was supported by profitable market share gains and above-market pricing growth earned through continuous service improvements. We reduced our damage claims ratio to less than 0.2%, with damages at a record low. And we surpassed our productivity targets by leveraging AI to operate our network more efficiently."
XPO reaffirmed its 2026 guidance, emphasizing continued margin expansion and free‑cash‑flow acceleration. The company generated $183 million in operating cash flow and closed the quarter with $237 million in cash. It also completed $30 million of share repurchases and $30 million of term‑loan repayments, reinforcing its capital‑allocation discipline.
The results reinforce XPO’s strategy of focusing on a pure‑play, asset‑based LTL business while investing heavily in AI and technology to drive operational efficiency. The strong earnings beat and margin improvement signal that the company is well positioned to capitalize on a freight‑demand recovery, even as it navigates headwinds such as wage inflation and higher fuel costs.
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