C.H. Robinson lifts adjusted earnings per share 28.6% to $1.80 in third quarter
Key Facts
C.H. Robinson lifted adjusted diluted earnings per share 28.6% to $1.80 in the third quarter of 2026, while revenue rose 29.5% to $5.4 billion, according to an earnings release published on Nasdaq. Diluted earnings per share under generally accepted accounting principles were $1.67, up 24.6% year over year. Adjusted gross profit also rose 14.5% to $808.4 million. Results showed North American surface transportation volume growth outpaced the Cass Index for the 14th consecutive quarter. By contrast, cash generated from operations fell to $124.1 million, highlighting the divergence between earnings growth and pressure on working capital.
The company said the revenue increase came mainly from higher pricing in truckload, ocean, less-than-truckload and airfreight services, along with higher truckload volumes. Revenue growth in the second quarter of 2026 was 19.3% to $4.9 billion, driven mainly by higher pricing in truckload, less-than-truckload, airfreight and ocean services. As a result, the annual revenue growth rate accelerated in the third quarter compared with the previous quarter. Adjusted gross profit rose, supported by higher profit per transaction in truckload, ocean, airfreight and less-than-truckload services. The company added that higher volumes in truckload and less-than-truckload services also contributed to adjusted gross profit growth.
At the operating level, North American surface transportation volume rose about 3.5% compared with the third quarter of 2025, while the Cass Freight Shipments Index fell 0.3%, according to the company’s release. This marked the 14th consecutive quarter in which the company’s volume growth exceeded the index. Adjusted gross profit per truckload shipment also increased 17.0% year over year. The company said the increase came despite a significant rise in spot-market freight costs. It attributed the result to “disciplined revenue management,” pointing to a factor supporting profitability per shipment amid higher market costs.
The company’s operating income rose 23.1% to $271.8 million, while operating expenses increased 10.6% to $536.6 million, according to the earnings release. Net income was $198.5 million, up 21.8% from a year earlier. Adjusted earnings per share of $1.80 beat analysts’ estimate of $1.75, while revenue of $5.36 billion exceeded the estimate of $4.92 billion, according to Investing.com. Still, the company’s shares fell 4.3% in premarket trading on October 28. The report said higher operating expenses and working-capital pressure raised investor concerns despite the earnings and revenue beats.
Cash generated from operations was $124.1 million in the third quarter, compared with $275.4 million in the same period of 2025, a year-over-year decline of $151.3 million. The company attributed the decrease mainly to a $246.4 million reduction in cash generated from changes in net operating working capital. This came alongside higher transportation prices that contributed to revenue growth, while the company said working-capital changes weighed on cash flow. By contrast, cash returned to shareholders rose 52.5% to $289.1 million during the quarter. Chief Executive Dave Bozeman said continued earnings growth over the past three years resulted from “disciplined execution of the Lean AI strategy.”
In a separate expansion move, C.H. Robinson announced an agreement on October 5 to acquire RXO in a deal with an implied value of $5.8 billion. The company projected annualized operating savings of about $300 million within two years of the deal’s completion. The companies said they expected to close the deal in the first half of 2027, subject to customary closing conditions, including regulatory and RXO shareholder approvals. The company had set October 28 for a call to discuss third-quarter results at 8:30 a.m. Eastern time. C.H. Robinson shares closed at $143.59 on October 27, before the results were announced.