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Does Ryder Stock's Q3 Earnings Beat Justify a Buy Decision Today?
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Key Takeaways
Ryder's Q3 adjusted EPS rose 21.3% to $4.33, beating estimates, while revenues grew 8.3% to $3.43 billion.
Strong FMS and SCS performances boosted Ryder's results, while free cash flow nearly doubled to $992 million.
Ryder shares gained 46.7% YTD, while its forward P/S ratio of 0.76X remains below the industry's 2.43X.
Last week, Ryder System, Inc. (R - Free Report) reported impressive third-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Strong Fleet Management Solutions (“FMS”) performance and share repurchases boosted earnings.
Quarterly adjusted earnings per share (EPS) of $4.33 beat the Zacks Consensus Estimate of $4.17 by 3.8% and increased 21.3% year over year. Total revenues of $3.43 billion surpassed the Zacks Consensus Estimate of $3.40 billion by 1% and rose 8.3% year over year. Operating revenues of $2.76 billion increased 5.7% year over year, reflecting contractual revenue growth in FMS and Supply Chain Solutions (“SCS”).
Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell Ryder stock now? A more in-depth analysis is needed to make that determination. Before diving into Ryder’s investment prospects, let’s take a glance at its quarterly numbers.
Highlights of Ryder’s Q3 Earnings
Apart from reporting better-than-expected results, Ryder also witnessed favorable segmental strength. FMS total revenues of $1.62 billion increased 10% year over year, reflecting higher fuel prices passed through to customers and increased operating revenues. Operating revenues rose 5% year over year to $1.34 billion, driven by contractual revenue growth.
The segment's earnings before taxes (EBT) increased 21% year over year to $177 million, benefiting from strategic initiatives supporting ChoiceLease performance, improved used vehicle sales and stronger rental results. EBT, as a percentage of operating revenues, improved to 13.2% from 11.4% a year ago.
Ryder's Supply Chain Solutions’ (SCS) total revenues of $1.50 billion increased 9% year over year, primarily reflecting higher operating revenues. Operating revenues climbed 9% to $1.13 billion, driven by new business, higher volumes and pricing, partially offset by lost automotive business.
SCS Segment EBT increased 7% year over year to $91 million, benefiting from the optimization of Ryder's omnichannel retail network and higher operating revenues. These gains were partially offset by lower automotive results and productivity challenges associated with new business ramp-ups. The segment's EBT margin, measured against operating revenues, declined to 8.1% from 8.3% a year ago.
Dedicated Transportation Solutions total revenues increased 6% year over year to $606 million, reflecting higher fuel revenues and subcontracted transportation costs passed through to customers. Segment EBT decreased 5% year over year to $34 million, reflecting reduced operating revenues and a prior-year workers' compensation insurance benefit. Cost savings from strategic initiatives partially offset these headwinds. EBT margin declined to 7.5% from 7.8% a year ago.
Net cash provided by operating activities from continuing operations totaled $1.99 billion during the first nine months of 2026, up from $1.85 billion in the corresponding year-ago period, primarily reflecting lower working capital requirements.
Free cash flow increased to $992 million from $496 million a year ago, primarily reflecting reduced capital expenditures. Ryder's adjusted return on equity improved to 18% from 17%.
Ryder Stock’s Price Performance
Shares of Ryder have gained 46.7% so far this year, outperforming the Zacks Transportation - Equipment and Leasing industry’s 7.3% increase, as well as that of other industry players, The Greenbrier Companies, Inc. (GBX - Free Report) and Wabtec Corporation (WAB - Free Report) .
Ryder Stock’s YTD Price Comparison
Image Source: Zacks Investment Research
Attractive Valuation Picture for Ryder Stock
Ryder looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), Ryder is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.76X compared with 2.43X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. Ryder has a Value Score of A.
Ryder P/S Ratio (Forward 12 Months) Vs. Industry
Image Source: Zacks Investment Research
What Do Earnings Estimates Say for Ryder?
The positive sentiment surrounding Ryder stock is evident from the fact that the Zacks Consensus Estimate for the fourth quarter of 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected upward in the past 60 days.
The favorable estimate revisions indicate brokers’ confidence in the stock.
Image Source: Zacks Investment Research
Final Thoughts
Ryder continues to benefit from its focus on contractual growth, operational discipline and a resilient business mix. Ryder’s expanding logistics and transportation outsourcing capabilities, improving used-vehicle market conditions and strategic initiatives support its long-term earnings potential. Ryder’s emphasis on productivity, customer-centric solutions and disciplined capital allocation strengthens its competitive position. Healthy cash-generation capabilities provide flexibility to fund fleet investments, pursue growth opportunities and return capital to shareholders.
Considering all the tailwinds, including the company’s solid third-quarter results, potential investors can consider adding Ryder stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
View the Zacks #1 Rank List
Image: Bigstock
Does Ryder Stock's Q3 Earnings Beat Justify a Buy Decision Today?
Key Takeaways
Last week, Ryder System, Inc. (R - Free Report) reported impressive third-quarter 2026 results, wherein both earnings and revenues surpassed the Zacks Consensus Estimate. Strong Fleet Management Solutions (“FMS”) performance and share repurchases boosted earnings.
Quarterly adjusted earnings per share (EPS) of $4.33 beat the Zacks Consensus Estimate of $4.17 by 3.8% and increased 21.3% year over year. Total revenues of $3.43 billion surpassed the Zacks Consensus Estimate of $3.40 billion by 1% and rose 8.3% year over year. Operating revenues of $2.76 billion increased 5.7% year over year, reflecting contractual revenue growth in FMS and Supply Chain Solutions (“SCS”).
Given this backdrop, the question that naturally arises is: Should investors buy, hold, or sell Ryder stock now? A more in-depth analysis is needed to make that determination. Before diving into Ryder’s investment prospects, let’s take a glance at its quarterly numbers.
Highlights of Ryder’s Q3 Earnings
Apart from reporting better-than-expected results, Ryder also witnessed favorable segmental strength. FMS total revenues of $1.62 billion increased 10% year over year, reflecting higher fuel prices passed through to customers and increased operating revenues. Operating revenues rose 5% year over year to $1.34 billion, driven by contractual revenue growth.
The segment's earnings before taxes (EBT) increased 21% year over year to $177 million, benefiting from strategic initiatives supporting ChoiceLease performance, improved used vehicle sales and stronger rental results. EBT, as a percentage of operating revenues, improved to 13.2% from 11.4% a year ago.
Ryder's Supply Chain Solutions’ (SCS) total revenues of $1.50 billion increased 9% year over year, primarily reflecting higher operating revenues. Operating revenues climbed 9% to $1.13 billion, driven by new business, higher volumes and pricing, partially offset by lost automotive business.
SCS Segment EBT increased 7% year over year to $91 million, benefiting from the optimization of Ryder's omnichannel retail network and higher operating revenues. These gains were partially offset by lower automotive results and productivity challenges associated with new business ramp-ups. The segment's EBT margin, measured against operating revenues, declined to 8.1% from 8.3% a year ago.
Dedicated Transportation Solutions total revenues increased 6% year over year to $606 million, reflecting higher fuel revenues and subcontracted transportation costs passed through to customers. Segment EBT decreased 5% year over year to $34 million, reflecting reduced operating revenues and a prior-year workers' compensation insurance benefit. Cost savings from strategic initiatives partially offset these headwinds. EBT margin declined to 7.5% from 7.8% a year ago.
Net cash provided by operating activities from continuing operations totaled $1.99 billion during the first nine months of 2026, up from $1.85 billion in the corresponding year-ago period, primarily reflecting lower working capital requirements.
Free cash flow increased to $992 million from $496 million a year ago, primarily reflecting reduced capital expenditures. Ryder's adjusted return on equity improved to 18% from 17%.
Ryder Stock’s Price Performance
Shares of Ryder have gained 46.7% so far this year, outperforming the Zacks Transportation - Equipment and Leasing industry’s 7.3% increase, as well as that of other industry players, The Greenbrier Companies, Inc. (GBX - Free Report) and Wabtec Corporation (WAB - Free Report) .
Ryder Stock’s YTD Price Comparison
Attractive Valuation Picture for Ryder Stock
Ryder looks cheap from a valuation standpoint. Considering the forward 12-month price-to-sales ratio (P/S-F12M), Ryder is trading at a discount compared to the industry.
The stock has a forward 12-month P/S-F12M of 0.76X compared with 2.43X for the industry over the past five years. These factors indicate that the stock’s valuation is attractive. Ryder has a Value Score of A.
Ryder P/S Ratio (Forward 12 Months) Vs. Industry
What Do Earnings Estimates Say for Ryder?
The positive sentiment surrounding Ryder stock is evident from the fact that the Zacks Consensus Estimate for the fourth quarter of 2026 earnings has been revised upward in the past 60 days. The consensus mark for 2026 and 2027 earnings has also been projected upward in the past 60 days.
The favorable estimate revisions indicate brokers’ confidence in the stock.
Final Thoughts
Ryder continues to benefit from its focus on contractual growth, operational discipline and a resilient business mix. Ryder’s expanding logistics and transportation outsourcing capabilities, improving used-vehicle market conditions and strategic initiatives support its long-term earnings potential. Ryder’s emphasis on productivity, customer-centric solutions and disciplined capital allocation strengthens its competitive position. Healthy cash-generation capabilities provide flexibility to fund fleet investments, pursue growth opportunities and return capital to shareholders.
Considering all the tailwinds, including the company’s solid third-quarter results, potential investors can consider adding Ryder stock to their portfolios for healthy returns. The company’s Zacks Rank #2 (Buy) further supports our thesis. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.