C.H. Robinson Shares Surge to Record High as AI Strategy Drives Margin Expansion Despite Freight Slump

C.H. Robinson raises 2026 operating income target by $50M as lean AI strategy accelerates margin expansion (NASDAQ:CHRW)

Earnings Call Insights: C.H. Robinson Worldwide, Inc. (CHRW) Q3 2025 Management View * CEO David Bozeman opened by noting a strong third quarter performance despite a continued soft freight environment, highlighting that "the cass freight shipment index declining year-over-year for the 12th consecutive Through a lean operating model, AI-driven productivity gains, and structural transformation, management maintains robust performance and market share gains despite ongoing freight softness. Market share gains, expanding gross margins, productivity improvements via AI initiatives, cost controls, and disciplined capital allocation underpin growth and margin targets, with updated 2026 operating income guidance increased by $50 million. Proprietary AI systems and unique lean processes are integrated into logistics, driving efficiency and building moats, enabling scalable operating leverage versus competitors.

C.H. Robinson's shares hit record high, defying freight slump with AI-driven gains

(Reuters) -Shares of C.H. Robinson surged more than 20% to a record high on Thursday as investors cheered the global freight forwarder's quarterly profit beat due to AI-driven efficiencies at a time when the rest of the logistics sector has struggled. The U.S.'s largest freight broker has been using artificial intelligence to automate tasks such as generating shipping quotes, scheduling pickups and deliveries and tracking shipments. This has helped speed up its operations and reduce reliance on manual work. "We believe that CHRW's scale and first mover advantage will allow for continued productivity and share gains in the coming years, and management has shown its operating model is differentiated," Stephens analyst Reed Seay said in a note. The company's adjusted profit of $1.40 per share for the quarter beat analysts' average estimate of $1.30, according to data compiled by LSEG. The beat was helped by a 12.6% decline in operating expenses from a year ago. The company's employee headcount was down 10.8%. "The transition to agentic AI to complement the large productivity improvements already enacted by generative AI, give management confidence to line-of-sight cost takeout and further margin improvement, even without market help," Evercore ISI analyst Jonathan Chappell said. C.H. Robinson managed to grow shipment volumes in both its truckload and less-than-truckload segments, helping its North American Surface Transportation segment post a 1.1% rise in revenue. Meanwhile, the U.S. freight industry has been facing subdued volumes, while excess capacity has kept rates under pressure. The trend has forced logistics firms to tighten spending and operate with greater discipline. C.H. Robinson's shares trade at a 12-month forward price-to-earnings ratio of 23.49, compared with the industry median of 16.32. (Reporting by Abhinav Parmar in Bengaluru; Editing by Leroy Leo)