XPO (NYSE:XPO) Shares Gap Up on Strong Earnings

XPO, Inc. (NYSE:XPO)’s stock price gapped up before the market opened on Thursday following a better than expected earnings announcement. The stock had previously closed at $179.54, but opened at $200.08. XPO shares last traded at $196.5630, with a volume of 1,113,645 shares.

The transportation company reported $0.88 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.76 by $0.12. The company had revenue of $2.01 billion for the quarter, compared to the consensus estimate of $1.95 billion. XPO had a return on equity of 25.07% and a net margin of 3.87%.XPO’s revenue was up 4.7% compared to the same quarter last year. During the same quarter in the previous year, the business earned $0.89 EPS.

More XPO News

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

Wall Street Analysts Forecast Growth

XPO has been the subject of a number of research analyst reports. BMO Capital Markets reaffirmed an “outperform” rating and issued a $205.00 price target on shares of XPO in a research note on Thursday. TD Cowen reaffirmed a “buy” rating on shares of XPO in a research report on Friday. Stephens reiterated an “overweight” rating and set a $170.00 price target on shares of XPO in a research report on Tuesday, January 6th. Truist Financial increased their price target on shares of XPO from $160.00 to $200.00 and gave the stock a “buy” rating in a research note on Friday. Finally, Evercore set a $200.00 price objective on XPO in a research report on Friday. One equities research analyst has rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating, four have issued a Hold rating and two have assigned a Sell rating to the company. Based on data from MarketBeat, XPO has a consensus rating of “Moderate Buy” and an average target price of $174.52.

Hedge Funds Weigh In On XPO

Institutional investors and hedge funds have recently made changes to their positions in the business. Capital World Investors boosted its position in shares of XPO by 7.3% in the 3rd quarter. Capital World Investors now owns 10,860,803 shares of the transportation company’s stock worth $1,403,973,000 after purchasing an additional 735,450 shares in the last quarter. Invesco Ltd. raised its stake in XPO by 19.8% during the third quarter. Invesco Ltd. now owns 6,267,881 shares of the transportation company’s stock valued at $810,249,000 after buying an additional 1,036,434 shares during the last quarter. Durable Capital Partners LP boosted its holdings in XPO by 20.5% in the third quarter. Durable Capital Partners LP now owns 4,331,280 shares of the transportation company’s stock worth $559,905,000 after acquiring an additional 736,224 shares in the last quarter. Orbis Allan Gray Ltd grew its stake in shares of XPO by 16.8% in the second quarter. Orbis Allan Gray Ltd now owns 3,150,052 shares of the transportation company’s stock worth $397,820,000 after acquiring an additional 452,891 shares during the last quarter. Finally, Norges Bank bought a new position in shares of XPO during the second quarter valued at $168,840,000. Institutional investors own 97.73% of the company’s stock.

XPO Trading Up 9.8%

The stock has a market cap of $23.92 billion, a PE ratio of 76.91, a price-to-earnings-growth ratio of 3.37 and a beta of 2.01. The firm has a 50-day moving average price of $148.28 and a 200-day moving average price of $137.12. The company has a debt-to-equity ratio of 1.75, a quick ratio of 1.02 and a current ratio of 1.05.

XPO Company Profile

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.