| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 26 | 53.7x | 17.8x | Bottom tier | |
Growth | 66 | 7.0% | 7.1% | Top tier | |
Quality | 66 | 10.5% | 4.5% | Top tier | |
Safety | 57 | 2.9x | 2.6x | Around median | |
Capital Return | 52 | — | 2.12% | Around median | |
Momentum | 56 | 51.2% | 2.9% | Around median | |
Sentiment | 68 | 15 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
XPO Logistics operates in ground transportation, with its core operating engine concentrated in the less-than-truckload LTL business in North America, alongside the European transportation segment. The company generates revenue by transporting customer freight through its network of terminals, trailers, and tractors, while seeking to increase yield by improving service, renewing contracts at higher rates, increasing its share of local small and medium-sized business customers, and expanding premium services such as grocery pooling, trade show freight, and time-definite delivery.
In fiscal Q2 2026, XPO's revenue increased 13% year over year to $2.4 billion, while revenue from the North American LTL segment rose 15% to $1.4 billion, representing approximately 58% of group revenue. Operating income reached $271 million, up 37%, net income was $162 million, and diluted earnings per share were $1.36 versus $0.89 in the comparable period, while adjusted earnings per share were $1.70.
The company recorded adjusted earnings before interest, taxes, depreciation, and amortization of $434 million in fiscal Q2 2026, or $425 million excluding $9 million in real estate gains, an annual increase of 25%. The LTL segment generated adjusted earnings before interest, taxes, depreciation, and amortization of $390 million and a record margin of 27.4% following a 310-basis-point improvement. Its adjusted operating income also rose 36% to $287 million, and its adjusted operating ratio declined to a record 79.9%. The European transportation segment recorded $48 million in adjusted earnings before interest, taxes, depreciation, and amortization, compared with an adjusted loss of $4 million in the corporate expense segment.
The average analyst price target is $231.85, which is very close to the upper end of the 52-week range of $232.05, with the consensus rated as a buy. However, the broad target range of $115 to $270 reflects a fundamental disagreement over the extent of sustainable improvement in tonnage, pricing, and the operating ratio. Therefore, realization of the higher valuation depends more on executing the margin expansion and cash flow plan than on the results of a single quarter.
Figures in the text are as of 2026-08-28; the live price is shown at the top of the page.
The North American LTL segment was the most important driver, generating revenue of $1.4 billion, up 15% year over year, out of total group revenue of $2.4 billion. Its adjusted operating income rose 36% to $287 million, while its adjusted earnings before interest, taxes, depreciation, and amortization margin reached 27.4%. A 4.4% increase in yield excluding fuel and 2.8% growth in daily shipments helped reduce the adjusted operating ratio to a record 79.9%.
XPO uses workforce planning technology that improved productivity by approximately 2.5 points in fiscal Q2 2026, compared with a target of 1.5 points. More than two-thirds of its operations also use pickup-and-delivery route optimization technology to reduce miles and increase stops per hour. In a trailer loading technology pilot, artificial intelligence analyzes freight images and provides workers with immediate feedback, improving loading quality by more than 40% and reducing damages by 50% at the pilot sites.
Management raised its forecast for fiscal 2026 operating ratio improvement to at least 200 basis points, compared with an initial forecast of between 100 and 150 basis points. It expects the operating ratio to be below 81% in fiscal Q3 2026, although normal seasonality would have placed it above 82%. Over the longer term, the company targets an annual LTL operating ratio in the low 70s or better, supported by pricing, premium services, and productivity.
Automated analysis for informational purposes only — not investment advice.
Since 2021, XPO has increased its number of trailers by more than 30% and tractors by more than 20%, while adding 15% to the number of doors in its network. Management said the existing workforce can handle an additional low-to-mid-single-digit increase in shipment count by restoring working hours. In fiscal Q2 2026, the company began hiring in certain markets, while maintaining more than 130 driver training schools if demand accelerates further.
The industrial recovery remains in its early stages, and daily tonnage increased only 1% in fiscal Q2 2026 while shipment weight declined 1.8%. At the same time, salaries, wages, and employee benefits expenses increased 7%, while fuel, operating, and supplies costs rose 24%, with wage, benefit, and incentive inflation expected to continue during the second half. The low-70s operating ratio target also requires execution over more than five years, while the analyst target range of $115 to $270 indicates substantial disagreement over the likelihood of success along this path.
