Key Takeaways
- Ryder shares rose 10% after its third-quarter comparable EPS rose 21% to $4.33, beating estimates, and it raised its 2026 outlook.
- The freight recovery is showing up in Ryder’s own numbers: used tractor prices are up 19% from a year ago, and rental utilization rose to 77%.
- Ryder is adding $300 million to this year’s rental fleet spending because it expects rental demand to be higher in 2027.
- Ryder’s forward P/E was already well above its five-year average before today’s jump, so 2027’s rental demand has to show up.
Ryder System (R) shares jumped 10% today after the company beat third-quarter estimates and raised its 2026 outlook before the open.
And for the first time in a while, the freight market is helping.
The details
- Comparable EPS rose 21% to $4.33, ahead of the $4.15 analysts expected.
- Revenue rose 8% to $3.43 billion, against $3.38 billion expected.
- Ryder raised its 2026 comparable EPS range to $14.85 to $15.05.
- It also raised its 2026 return on equity target to 18% to 19%.
The freight cycle is turning
Nearly all of the earnings growth came from Fleet Management Solutions, where pre-tax earnings rose 21% to $177 million. Diez credited “early benefits from the freight market recovery.”
The numbers back him up. Used tractors sold for 19% more than a year ago, and 15% more than just last quarter. Rental utilization climbed to 77% from 70%, on a rental fleet 12% smaller.
So Ryder is buying more trucks. It now plans to put $500 million into its rental fleet this year, $300 million more than its prior forecast. (Its full-year capital budget stays at $2.4 billion because it’s spending less on lease trucks.)
CFO Cristina Gallo-Aquino said the investment “will position us to capture higher expected rental demand in 2027.”
That’s management putting real money behind the recovery.
TIKR tracks 11 analysts on Ryder System. How many say “Buy”?
See the full breakdown of Buy, Hold, and Sell ratings on Ryder System, along with Wall Street’s revenue and earnings estimates, all in one place. More than 500,000 investors use TIKR to research stocks like this one. See Ryder System’s Analyst Ratings
Earnings are moving again
That matters because Ryder’s earnings went nowhere for a couple of years. Normalized EPS was $12.95 in 2023 and $12.92 in 2025, and analysts expect a sharp climb from here…
The 2026 consensus of $14.69 is below the low end of Ryder’s new range, so expect estimates to move up.
Priced for a recovery
The market has noticed. Ryder traded at 15x forward earnings at yesterday’s close, well above its five-year average of 10x…
After today’s jump, it’s closer to 16x, not far from its 19x peak in June.
My take: this looks like the start of a real upcycle for Ryder, and the $300 million rental bet tells me management sees it too. But at this multiple, the stock needs that 2027 rental demand to arrive. If freight stalls, Ryder is left with more idle trucks and a stock priced for growth.
Ryder’s fourth-quarter report, due early next year, is the next check. It guided to comparable EPS of $4.25 to $4.45 for the quarter.
So what is Ryder stock actually worth?
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any of the stocks mentioned. Thank you for reading, and happy investing!
