Knight-Swift (KNX) Q4 2025 Revenue Decline of $125 Million Amid Cost Cuts

Written by Emily J. Thompson, Senior Investment Analyst

KNX+5.19%

Source: seekingalpha

Updated: 1h ago

0mins

Source: seekingalpha

Stable Market Demand: Although truckload market demand remained generally stable in Q4, the typical seasonal lift did not occur until late in the quarter, resulting in a rapid decline in project activity and lower truckload volumes than expected, which negatively impacted overall performance.
Effective Cost Control: Despite a $125 million decline in truckload revenue, the company managed to grow adjusted operating income by $28 million through structural cost reductions, demonstrating its effectiveness in cost management and ability to navigate market challenges.
Technology Investment Outlook: The company is investing in technologies such as AI to enhance efficiency, with expected benefits to be realized in 2026, which will strengthen its long-term competitiveness in a challenging market.
LTL Network Expansion Strategy: Management plans a more deliberate pace of LTL network expansion to restore margins, believing that existing infrastructure can support annualized revenue of $2 billion, reflecting confidence in future growth.

KNX

$57.93+Infinity%1D

Analyst Views on KNX

Wall Street analysts forecast KNX stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KNX is 58.23 USD with a low forecast of 47.00 USD and a high forecast of 70.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.

13 Analyst Rating

10 Buy

3 Hold

0 Sell

Strong Buy

Current: 55.070

Low

47.00

Averages

58.23

High

70.00

Current: 55.070

Low

47.00

Averages

58.23

High

70.00

BofA

Ken Hoexter

Buy

maintain

$60 -> $64

Al Analysis

2026-01-09

Reason

BofA

Ken Hoexter

Price Target

$60 -> $64

Al Analysis

2026-01-09

maintain

Buy

Reason

BofA analyst Ken Hoexter raised the firm's price target on Knight-Swift to $64 from $60 and keeps a Buy rating on the shares. The firm looks to expand its exposure to cyclical Transport stocks into 2026, with a focus on cost conscious AI-enabled share gainers, the analyst tells investors in a year-ahead note on the sector. Demand should be aided by the Big Beautiful Bill's benefits of bonus depreciation, leading to infrastructure investments, $1.4 trillion in expected expenditures over the next three years on data centers and power supply, lower interest rates and potential flow through to the housing and forest product segments, the analyst says.

Susquehanna

Bascome Majors

Neutral

maintain

$42 -> $58

2026-01-08

Reason

Susquehanna

Bascome Majors

Price Target

$42 -> $58

2026-01-08

maintain

Neutral

Reason

Susquehanna analyst Bascome Majors raised the firm's price target on Knight-Swift to $58 from $42 and keeps a Neutral rating on the shares. The firm adjusted ratings and price targets in the logistics and trucking group as part of its 2026 outlook. The truckload recovery is taking place on the supply side, and Susquehanna is "shifting to a bullish valuation framework with some nearer-term caution toward chasing shares into softer seasonality," the analyst tells investors in a research note.

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Citi

NULL -> Buy

maintain

$59 -> $64

2026-01-07

Reason

Citi

Price Target

$59 -> $64

2026-01-07

maintain

NULL -> Buy

Reason

Citi raised the firm's price target on Knight-Swift to $64 from $59 and keeps a Buy rating on the shares. The firm adjusted ratings and targets in the transports group as part of its 2026 outlook. Citi sees a better setup in 2026 for the sector due to tighter capacity, which it believes should support higher rates.

Wells Fargo

NULL -> Overweight

maintain

$58 -> $60

2026-01-06

Reason

Wells Fargo

Price Target

$58 -> $60

2026-01-06

maintain

NULL -> Overweight

Reason

Wells Fargo raised the firm's price target on Knight-Swift to $60 from $58 and keeps an Overweight rating on the shares. Entering 2026, the firm thinks an incrementally more offensive approach to the group with a greater focus on early cycle makes sense. Wells sees two themes emerging in 2026, namely the long-awaited TL recovery led by supply and rail M&A and its implications.

About KNX

Knight-Swift Transportation Holdings Inc. is a diversified freight transportation company. The Company is engaged in providing multiple truckload transportation and logistics services as well as less-than-truckload (LTL) services. It uses a nationwide network of business units and terminals in the United States and Mexico to serve customers throughout North America. The Truckload segment consists of an irregular route and dedicated, refrigerated, expedited, flatbed, and cross-border operations. The LTL segment operates approximately 3,569 tractors and 9,564 trailers and includes national coverage to customers by utilizing partner carriers for areas outside of its direct network. Logistics and Intermodal segments provide a multitude of shipping solutions, including additional sources of truckload capacity and alternative transportation modes, by utilizing its network of third-party capacity providers and rail providers, as well as certain logistics and freight management services.

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.