C.H. Robinson Worldwide, Inc. (CHRW Quick QuoteCHRW - Free Report)  reported impressive third-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate.

Quarterly adjusted earnings of $1.80 per share increased 28.6% year over year and beat the Zacks Consensus Estimate of $1.72 by 4.7%. Revenues climbed 29.5% year over year to $5.36 billion, surpassing the consensus mark of $4.96 billion by 8.1%. Higher transportation pricing, continued market share gains and productivity improvements fueled by Lean AI supported growth. North American Surface Transportation (“NAST”) volumes increased 3.5%, outperforming the Cass Freight Shipment Index for the 14th consecutive quarter.

CHRW Sees Higher Operating Profits Despite Cost Rise

Adjusted gross profits increased 14.5% year over year to $808.43 million, primarily driven by higher adjusted gross profit per transaction in truckload, ocean, air and less-than-truckload (LTL) services, alongside increased truckload and LTL volumes.

Adjusted income from operations climbed 26.1% year over year to $290.75 million. Adjusted operating margin, excluding specified items, expanded 330 basis points to 36%.

Operating expenses increased 10.6% year over year to $536.6 million. Personnel expenses rose 3.1% year over year to $360.3 million, primarily due to higher incentive compensation, partially offset by cost optimization and productivity improvements. Average employee headcount declined 10.4%.

Other selling, general and administrative expenses increased 29.7% year over year to $176.3 million, mainly due to higher claims expenses and an impairment charge related to the company's Kansas City regional center lease.

C.H. Robinson's NAST Segment Extends Market Gains

NAST revenues jumped 29.1% year over year to $3.83 billion, driven by higher truckload and LTL pricing and volumes. Adjusted gross profits increased 16.6% to $517.86 million.

Truckload adjusted gross profits advanced 20.7% year over year, supported by a 17% increase in adjusted gross profit per shipment and 3.5% volume growth. Customer truckload linehaul rates per mile rose 31.5%, while corresponding costs increased 33.5%.

LTL adjusted gross profits increased 8%, reflecting a 4% improvement in adjusted gross profit per order and 3.5% volume growth.

NAST income from operations rose 17.9% year over year to $203.9 million. Adjusted operating margin, excluding specified items, expanded 110 basis points to 40.3%, supported by disciplined revenue management and productivity improvements.

CHRW's Global Forwarding Business Gains Momentum

Global Forwarding revenues surged 46.1% year over year to $1.15 billion, primarily driven by higher ocean and air freight pricing. Adjusted gross profits increased 15.4% to $221.24 million.

Ocean adjusted gross profits grew 23.2% year over year, supported by a 20.5% increase in adjusted gross profit per shipment and 2% shipment growth. Air adjusted gross profits also climbed 23.2%, benefiting from a 28.5% increase in adjusted gross profit per metric ton, partially offset by a 4% volume decline.

Customs adjusted gross profits declined 12.9% year over year, reflecting lower profitability per transaction.

Global Forwarding income from operations rose 63.3% year over year to $80.05 million. Adjusted operating margin, excluding specified items, expanded 660 basis points to 36.6%, aided by cost optimization and lower restructuring charges.

C.H. Robinson's Other Businesses Post Mixed Results

Revenues from All Other and Corporate declined 1.3% year over year to $379.79 million. Adjusted gross profits decreased 1.2% to $69.34 million.

Robinson Fresh adjusted gross profits fell 5.1% year over year to $38.13 million due to margin compression from higher fuel costs, partially offset by increased foodservice customer volumes. Managed Solutions adjusted gross profits grew 4.1% to $31.21 million, benefiting from increased freight under management.

CHRW's Cash Flow Declines Amid Higher Freight Rates

Cash generated from operations decreased to $124.1 million from $275.4 million in the year-ago quarter. The decline primarily reflected unfavorable working capital changes and higher transportation rates.

CHRW returned $289.1 million to shareholders, including $214.3 million through share repurchases and $74.8 million in dividends. Capital expenditures totaled $17.5 million.

The company exited September with cash and cash equivalents of $193.13 million compared with $160.87 million at the end of December 2025. Long-term debt stood at $1.44 billion.

C.H. Robinson Maintains 2026 Targets, Eyes RXO Deal

Management expects 2026 capital expenditures of $65-$75 million and a full-year effective tax rate of 18-20%.

The company remains confident in achieving adjusted operating income of approximately $964 million to $1.04 billion in 2026, excluding restructuring and other charges. Its assumptions include market volume growth ranging from negative 3% to positive 1%, continued market outperformance and productivity gains.

C.H. Robinson also highlighted its proposed $5.8 billion acquisition of RXO, expected to close in the first half of 2027. The transaction is projected to generate approximately $300 million in net annual run-rate cost synergies and become accretive to adjusted earnings per share within nine months of closing.

Currently, CHRW has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Q3 Performance of Other Transportation Companies

Delta Air Lines (DAL Quick QuoteDAL - Free Report) reported third-quarter 2026 earnings (excluding 57 cents from non-recurring items) of $1.72 per share, missing the Zacks Consensus Estimate of $1.80 by 4.44%. Earnings increased year over year despite sharply higher fuel costs and rising non-fuel expenses.

Adjusted revenues climbed 16% year over year to $17.59 billion but missed the consensus estimate of $17.74 billion by 0.9%. Broad demand strength and healthy yields lifted adjusted total revenue per available seat mile or TRASM, 15%, while premium and diversified revenue streams continued to expand.

J.B. Hunt Transport Services, Inc. (JBHT Quick QuoteJBHT - Free Report) reported third-quarter 2026 earnings of $1.82 per share, up 3.4% from $1.76 a year ago. The figure beat the Zacks Consensus Estimate of $1.81 by 0.6%.

Operating revenues climbed 20.4% year over year to $3.68 billion and surpassed the consensus mark of $3.56 billion by 3.2%. Stronger pricing, an 8% increase in Intermodal loads and higher brokerage volumes supported growth. However, elevated driver-related expenses, fuel costs and insurance claims pressured profitability.

United Airlines Holdings, Inc. (UAL Quick QuoteUAL - Free Report) reported third-quarter 2026 adjusted earnings of $2.54 per share, down 8.6% year over year and below the Zacks Consensus Estimate of $2.60 by 2.3%. Higher fuel expenses weighed on profitability despite strong revenue growth.

Operating revenues rose 17.4% to $17.88 billion but missed the consensus mark of $17.91 billion by 0.2%. A 15.9% increase in total revenue per available seat mile or TRASM, supported the top line, driven by strength across premium, loyalty and contracted business revenues.