XPO Inc (NYSE:XPO) Reports Mixed Q2 2025 Earnings, Beats Revenue Estimates but EPS Declines

XPO INC (NYSE:XPO) reported its second-quarter 2025 earnings, delivering mixed results compared to analyst expectations. The company's performance, along with the market's reaction, provides insights into investor sentiment and the freight transportation firm's near-term outlook.

Key Financial Highlights

• Revenue: Reported revenue for Q2 2025 came in at $2.08 billion, slightly above the analyst consensus estimate of $2.07 billion. This indicates modest top-line growth, reinforcing the company's ability to meet demand despite macroeconomic uncertainties.
• Earnings Per Share (EPS): Adjusted diluted EPS was $1.05, surpassing the estimated $1.00, though down from $1.12 in the prior-year period. The unadjusted diluted EPS of $0.89 reflects a decline from $1.25 in Q2 2024, likely due to higher operational costs or one-time expenses.

Market Reaction

Following the earnings release, XPO's shares saw a pre-market gain of ~2.96%, suggesting investor optimism about the earnings beat. However, the stock's performance over the past week has been nearly flat (-0.02%), while it has posted modest gains over the past two weeks (+2.95%) and month (+2.19%). This indicates that while the immediate reaction is positive, broader market sentiment remains cautious.

Forward-Looking Estimates

Analysts project the following for XPO:

• Q3 2025 Revenue Estimate: $2.09 billion
• Q3 2025 EPS Estimate: $1.03
• Full-Year 2025 Revenue Estimate: $8.12 billion
• Full-Year 2025 EPS Estimate: $3.66

The company did not provide explicit guidance in the press release, leaving investors to rely on analyst forecasts. The lack of a formal outlook is neither positive nor negative but may contribute to some uncertainty in the stock’s near-term trajectory.

Press Release Summary

The earnings announcement highlighted:

• A year-over-year decline in both reported and adjusted EPS, reflecting cost pressures or investment-related expenses.
• Revenue growth that slightly exceeded expectations, indicating resilience in XPO’s core freight transportation segments.
• No major operational disruptions or strategic shifts were mentioned, suggesting business continuity.

For a deeper dive into XPO’s earnings and analyst estimates, visit the earnings page.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should conduct their own research or consult a financial advisor before making any decisions.