XPO Reports Strong Q4 Earnings Amid Manufacturing Recovery
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 30 2026
0mins
Should l Buy XPO?
Source: Yahoo Finance
XPO's stock fell 5.01% as it crossed below the 5-day SMA, reflecting broader market trends with the Nasdaq-100 down 0.68% and S&P 500 down 0.17%.
Despite the stock's decline, XPO reported a strong Q4 performance, with revenue rising 5% to $2.01 billion, exceeding estimates of $1.95 billion. This growth was driven by a 5.2% increase in yield, even as daily tonnage declined by 4.5%. The ISM's report of expanding U.S. manufacturing activity, with a reading of 52.6, signals a potential recovery that could positively impact XPO, as two-thirds of its shipments are industrial goods. Additionally, operational efficiency improvements have enhanced margins, with an adjusted operating ratio in North America improving by 180 basis points to 84.4%.
The implications of these results suggest that while the stock is currently under pressure, the underlying business fundamentals remain strong. XPO's ability to adapt and improve operational metrics positions it well for future growth, especially as manufacturing conditions improve.
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Analyst Views on XPO
Wall Street analysts forecast XPO stock price to fall
19 Analyst Rating
15 Buy
3 Hold
1 Sell
Moderate Buy
Current: 204.530
Low
90.00
Averages
155.22
High
171.00
Current: 204.530
Low
90.00
Averages
155.22
High
171.00
About XPO
XPO, Inc. is a provider of freight transportation services. The Company moves goods through its customers supply chains in North America and Europe. It operates through two segments: North American Less-Than-Truckload (LTL), and European Transportation. The North American LTL segment provides shippers with geographic density and day-definite domestic and cross-border services to the United States (U.S.), as well as Mexico, Canada, and the Caribbean. It also includes trailer manufacturing operations. The European Transportation segment offers a range of services, such as truckload, LTL, truck brokerage, managed transportation, last mile, freight forwarding and multimodal solutions, including road-rail and road-short sea combinations. It serves a base of customers in consumer, trade, and industrial markets. The Company offers XPO Smart, its proprietary suite of intelligent tools and analytics that self-adjusts site by site to drive productivity across LTL service center operations.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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