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Investing.com - C.H. Robinson Worldwide (NASDAQ:CHRW) shares rose more than 12% in aftermarket trading following its third-quarter earnings report that exceeded analyst expectations and an increase in its 2026 operating income targets. The logistics company, with a market capitalization of $18.32 billion, has already seen impressive momentum with a 46.67% price return over the past six months and is now trading above its previous 52-week high of $138. InvestingPro data shows the stock has delivered a strong 20.82% return over the past year.
The logistics company reported adjusted earnings per share of $1.40 for the third quarter of 2025, representing a 9.4% year-over-year increase and surpassing both Benchmark and consensus estimates of $1.30. The company’s adjusted operating income reached $230.6 million, exceeding Benchmark’s estimate of $217.6 million and the Street’s expectation of $213 million.
C.H. Robinson raised its 2026 operating income goal by approximately $50 million despite challenging freight conditions, setting a new target range of $965 million to $1.04 billion. This revised outlook implies potential 2026 earnings per share of approximately $6.00, compared to the consensus estimate of $5.59. While currently trading at a P/E ratio of 35.43, InvestingPro analysis indicates the stock has a favorable PEG ratio of 0.48, suggesting it’s trading at a low P/E relative to near-term earnings growth. However, based on Fair Value calculations, the stock appears to be trading at a premium to its intrinsic worth.
The company attributed its performance to AI-driven automation and its lean operating model, which have driven consistent market share gains in its North American Surface Transportation (NAST) division. This marks the seventh consecutive quarter of outperformance through the execution of its lean operating model, with both NAST and Global Forwarding delivering mid-cycle operating margins.
Management cautioned that Global Forwarding adjusted gross profits will likely face near-term pressure due to prior volume front-loading, global demand dislocation, and a softer-than-normal peak season leading to lower vessel rates. Benchmark analyst Christopher Kuhn reiterated a Buy rating with a $125.00 price target on the stock, noting that estimates and price target are under review. Long-term investors might appreciate that C.H. Robinson has raised its dividend for 28 consecutive years, currently offering a 1.92% yield. For comprehensive analysis of CHRW and 1,400+ other stocks, InvestingPro offers detailed Pro Research Reports with intuitive visuals and expert insights to inform smarter investment decisions.
In other recent news, C.H. Robinson Worldwide reported third-quarter earnings that surpassed consensus expectations, with adjusted diluted earnings per share exceeding estimates by 8%. Despite the strong performance, the company has provided guidance for the fourth quarter that falls below market expectations. UBS raised its price target for the company to $177, citing the robust performance of the North American Surface Transportation and Forwarding segments, which contributed earnings above projections. Similarly, TD Cowen increased its price target to $138, noting that C.H. Robinson outperformed both its forecasts and consensus expectations, even in a challenging freight market.
Bernstein also raised its price target to $135, maintaining a Market Perform rating, while Raymond James increased its target to $161, highlighting the operational transformations under CEO Bozeman, including lean and AI initiatives. BMO Capital adjusted its price target to $140, noting that a shift in SG&A costs contributed to the better-than-expected third-quarter results. These developments reflect a series of analyst upgrades and positive assessments of the company’s recent financial performance and strategic initiatives.
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