C.H. Robinson Worldwide (CHRW): 3Q26 EPS Ahead On Greater Net Revenue; Higher SGA Run rate Likely Weighs on Shares Although Guide Range Intact

CHRW (Not Rated) reported adjusted 3Q26 EPS at $1.80, ahead of GS/Visible Alpha Consensus estimates of $1.78/$1.76. Net revenue of $808M was above our $791M forecast from higher gross revenues, but overall operating income was only slightly ahead of our forecast (adjusted EBIT +1% vs GSe) due primarily to higher than expected SG&A (+$14m v. GSe) from higher claims expenses which can be lumpy. CHRW continued to grow volumes, up 3.5% (both TL and LTL up 3.5%), despite the overall market declining -0.3% (as per Cass), while keeping its NAST operating margin target of 40%. NAST net revenue margins improved 40bps sequentially to 13.5%, powered by 19% net revenue growth in TL. Management maintained its 2026 operating income target of $964m-$1,040m but raised personnel expense guidance to $1.36-$1.37bn and SG&A to $585-590m. We maintain FY26/27/28 EPS estimates of $6.30/$7.30/$7.95. Although the guide range is unchanged, we think the recurrent theme of higher expense tracking is likely weighi