C.H. Robinson Worldwide, Inc. (CHRW) Earnings & Analysis

Latest quarter

C.H. Robinson reported Q2 FY2026 revenue of $4.9 billion, which was above the consensus revenue of $4.4 billion; revenue as the consensus counts it was 11.7% above that benchmark. The company reported adjusted EPS, as the consensus counts it, of $1.61, compared with consensus adjusted EPS of $1.53, or 5.23% above the consensus.

The 10-Q shows that revenue increased 19.3% from Q2 FY2025, primarily on higher pricing in truckload, LTL, air and ocean services. C.H. Robinson said combined NAST truckload and LTL volume increased approximately 1.5% year over year, while ocean freight shipments increased 1.0% and air-freight tonnage decreased 7.5%. The company reported diluted EPS of $1.56, up 23.8% from a year earlier. Its gross margin was 15.0%, versus 16.8% in Q2 FY2025, while operating margin was 5.18%, compared with 5.22%. C.H. Robinson reported free cash flow of $17.7 million, compared with $207.0 million a year earlier.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

Dave Bozeman said freight demand remained in a trough, citing a year-over-year decline in the Cass freight shipment index for a 15th consecutive quarter. He said supply-driven tightening raised truckload linehaul cost per mile 29% year over year and put pressure on contractual margins, while the company’s pricing and cost-discovery processes helped it manage spot-rate changes.

Damon Lee said higher NAST and Global Forwarding pricing, NAST volume outperformance relative to the index, and improved profitability across segments contributed to the quarter. He said average headcount declined 10.8% year over year as the company pursued productivity and cost-optimization efforts, while higher incentive compensation partly offset those savings. Lee also said Global Forwarding’s use of the technology stack deployed in NAST would affect revenue growth, revenue management, pricing and productivity.

When analysts asked about the balance between contractual and transactional freight, Michael Castagnetto said C.H. Robinson continued to win contractual business and participated in the transactional market. He said contract repricing raised acceptance levels and reduced the number of transactional loads available, while the company focused on winning desirable freight in both channels. Castagnetto said the company was managing a price-and-cost squeeze in truckload, with carrier costs rising while demand remained subdued, and said its revenue-management practices were intended to move margins upward as market conditions developed.

Lee said the company would not provide a specific metric for when it would use its pricing optionality, because the mix of desirable freight changes with daily market conditions. Asked about the Texas jury’s advisory verdict, Bozeman said C.H. Robinson strongly disagreed with it and would appeal if it became final; he said the company would not discuss additional details of the ongoing legal matter.

Guidance

Damon Lee narrowed C.H. Robinson’s FY2026 SG&A-expense outlook to $540.0 million–$580.0 million from the prior $540.0 million–$590.0 million range. He lowered FY2026 capital-expenditure expectations to $65 million–$75 million from $75 million–$85 million. Lee also said higher incentive compensation was expected to move FY2026 personnel expenses toward the higher end of the company’s $1.3 billion–$1.4 billion range.