'Mentioning AI always helps': trucking company shares soar 20% after report

Shares of logistics company C.H. Robinson Worldwide soared nearly 20% in trading on Oct. 30. They showed the best growth during one day since 2007, Bloomberg noted. The papers also became leaders in the S&P 500 index and ended the day at a record high.

The rally began after the release of C.H. Robinson's third-quarter report. Robinson's third-quarter report. In it, the company raised its operating profit forecast for 2026, citing productivity growth thanks to AI agents that automate order processing and price calculation, Bloomberg writes.

C.H. Robinson uses its own Lean AI model, which automates the entire cargo delivery cycle: from calculating the price to selecting the delivery route. This approach allows the company to improve efficiency, the report says. Since the end of 2022, productivity in the international logistics segment (Global Forwarding) has increased by more than 55%, the company claims. And the key North American Overland Transportation (NAST) segment has achieved a 39% operating margin - even in a weak market.

Adjusted earnings per share of C.H. Robinson in the third quarter was $1.4 - up 9.4% from a year earlier, the publication said. That's despite revenue falling 10.9% to $4.1 billion due to falling ocean freight rates, weak demand and the sale of its European logistics business. Despite that, operating margins rose to 31.3%, the highest in several years, Bloomberg notes . C.H. Robinson raised its 2026 operating profit forecast to a range of $965 million to $1.04 billion, up from earlier expectations of $903 million to $1 billion.

"We are not immune to market conditions," CEO Dave Bozeman said in a press release, noting the overall decline in market profitability. - But C.H. Robinson is different now. We don't use macroeconomics as an excuse."

This is not the first wave of growth in C.H. Robinson shares. Robinson on the background of technological achievements, reminds Bloomberg. On July 31, securities jumped 18% after the company reported second-quarter earnings. Since the beginning of the year, securities of the logistics company have risen by almost 50%.

"Mentioning AI always helps," Mark Hackett , chief market strategist at Nationwide Fund Advisors, which owns shares of C.H. Robinson, Mark Hackett. - But this is primarily a success story, not a favorable macroeconomy, although the company has seen market share gains."

"The company continues to impressively demonstrate how AI can be realistically leveraged to improve efficiency and profits," Barclays analyst Brandon Oglenski wrote in a note cited by Bloomberg. The elevated earnings outlook, he added, gives the stock a relatively good outlook "in a generally sluggish transportation sector."

According to MarketWatch, shares of C.H. Robinson is tracked by 29 analysts, with 14 of them advising to buy the stock, 11 advising to hold, and four advising to sell. However, Wall Street doesn't expect the stock to rise further, with the consensus price target of $147.04 5% below its Oct. 30 close.

This article was AI-translated and verified by a human editor