What Happened?
Shares of freight delivery company XPO (NYSE:XPO) jumped 3.1% in the afternoon session after the company reported strong third-quarter 2025 financial results that surpassed analyst expectations for both revenue and earnings.
The transportation company posted revenue of $2.11 billion, a 2.8% increase from the previous year, which exceeded forecasts. Its adjusted earnings per share came in at $1.07, also beating estimates. The positive results were linked to operational improvements in its North American Less-Than-Truckload segment, where AI-enabled productivity helped expand margins despite a soft freight market. In addition to the strong earnings, XPO also announced the completion of a share repurchase program. Following the report, Stifel raised its price target on the stock to $149 and maintained a 'Buy' rating.
After the initial pop the shares cooled down to $142.48, up 4.8% from previous close.
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What Is The Market Telling Us
XPO’s shares are quite volatile and have had 18 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 23 days ago when the stock gained 3.5% on the news that JPMorgan reiterated its "Overweight" rating on the transportation and logistics company. The firm's analyst affirmed the rating, suggesting continued confidence in XPO's business model and future growth. Adding to the positive sentiment, Moody's Ratings affirmed XPO's corporate family rating and changed its outlook from stable to positive, noting expectations of ongoing operational improvements through 2026. Furthermore, Benchmark maintained its "Buy" rating on the company, citing progress in improving pricing and margins, and added XPO to its Best Ideas List with a price target of $140.00.
XPO is up 7.5% since the beginning of the year, but at $142.48 per share, it is still trading 9.9% below its 52-week high of $158.20 from December 2024. Investors who bought $1,000 worth of XPO’s shares 5 years ago would now be looking at an investment worth $1,576.
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