The quarter cleared the market’s bar on both headline measures. EPS of $1.91 exceeded the published consensus of roughly $1.71, while revenue of $3.50 billion topped expectations near $3.26 billion.
| Measure | Q2 2026 | Q2 2025 / expectation |
|---|---|---|
| Revenue | $3.50B (Financial Highlights) | $2.93B prior year; ~$3.26B consensus |
| EPS | $1.91 (Income Statement) | $1.31 prior year; ~$1.71 consensus |
| Operating income | $259.5M (Income Statement) | $197.3M prior year |
| Operating margin | 7.4% (Income Statement) | 6.7% prior year |
| Intermodal operating income | $150.9M (Segment results — Intermodal) | $95.7M prior year |
| ICS gross profit margin | 12.5% (Segment metrics — ICS) | 15.5% prior year |
| Truckload operating income/(loss) | $(1.3)M (Segment results — Truckload) | $3.4M prior year |
Intermodal was the main earnings engine, not just fuel inflation. Revenue rose 22% as loads increased 10%, but the more important change was operating income up 58% to $150.9 million, reflecting better network efficiency, fewer empty moves and lower storage costs. Revenue per load excluding fuel surcharge rose only 1%, so the profit improvement came chiefly from volume and execution rather than a major pricing gain (Segment results — Intermodal).
The rebound is broad, but the quality is uneven underneath. ICS returned to a $1.7 million operating profit from a $3.6 million loss as volume and revenue per load surged, yet its gross margin fell to 12.5% from 15.5% and purchased transportation expense rose 54%. Truckload revenue jumped 35% but swung to a $1.3 million loss, while Final Mile revenue and operating income declined 6% and 30%, respectively (Segment results — ICS; Segment results — Truckload; Segment results — Final Mile).
Net result: a genuine beat, with improved consolidated margins but still-visible capacity-cost pressure. Operating margin expanded to 7.4% from 6.7%, helped by productivity, cost reductions, lower medical claims and lower interest expense. However, the weakest businesses remain exposed to third-party transportation costs, and operating cash flow fell to $723.3 million from $806.2 million despite sharply lower capital spending of $144.9 million (Income Statement; Cash Flow data).
Read the original 8-K on SEC EDGAR ↗