• XPO, Inc. recently reported its third quarter 2025 earnings, posting sales of US$2.11 billion and net income of US$82 million, alongside the completion of a US$60 million share repurchase program.

• The company’s focus on technology-driven operational improvements and premium service expansion fueled margin gains, positioning XPO as the only public less-than-truckload carrier to expand margins this quarter despite a soft freight market.

• We’ll examine how XPO’s operational gains in premium and high-margin shipments influence its investment narrative and future performance outlook.

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To own XPO shares, I need to believe the company can sustainably expand margins and grow premium offerings amid freight market swings. The latest results reinforce XPO’s reputation for margin improvement, but the soft freight environment leaves near-term volume recovery and persistent cost pressures as the big catalysts and main risk. These quarterly updates do not materially alter either factor at this stage.

One news item fitting this context is XPO’s buyback program completion, with US$60 million in share repurchases this quarter. While this supports capital return, it does not address industry-specific risks such as margin pressures from labor costs, or the importance of future volume trends for earnings growth.

However, investors should not overlook the potential longer-term impact of freight market cyclicality if end-market demand remains weaker for longer periods than expected…

Read the full narrative on XPO (it’s free!)

XPO’s narrative projects $9.2 billion in revenue and $661.0 million in earnings by 2028. This calls for 4.7% annual revenue growth and a $316 million increase in earnings from the current $345.0 million.

Uncover how XPO’s forecasts yield a $141.52 fair value, in line with its current price.

Fair value estimates from three Simply Wall St Community members range from US$91.89 to US$141.52 per share, revealing a wide spread of views. Consider how XPO’s heavy concentration in the US less-than-truckload segment shapes these outlooks and impacts the company’s future resilience.

Explore 3 other fair value estimates on XPO – why the stock might be worth as much as $141.52!

Disagree with existing narratives? Create your own in under 3 minutes – extraordinary investment returns rarely come from following the herd.

• A great starting point for your XPO research is our analysis highlighting 1 key reward and 1 important warning sign that could impact your investment decision.

• Our free XPO research report provides a comprehensive fundamental analysis summarized in a single visual – the Snowflake – making it easy to evaluate XPO’s overall financial health at a glance.