Sharp Knight-Swift (NYSE: KNX) Q1 EPS cut, Q2 outlook raised
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Knight-Swift Transportation Holdings Inc. updated its outlook, sharply reducing expected first-quarter 2026 Adjusted EPS to a range of $0.08 to $0.10, down from its earlier guidance of $0.28 to $0.32. Management attributes the downgrade mainly to one-time or unusual items, including a large unfavorable arbitration award in its less-than-truckload segment, deferred warehousing project business, an adverse VAT reimbursement decision in Mexico, and severe winter weather combined with sharply rising fuel prices.
At the same time, the company issued second-quarter 2026 Adjusted EPS guidance of $0.45 to $0.49, implying a much stronger sequential performance. Leadership notes that the specific first-quarter disruptions are not expected to recur and highlights improving freight demand, tightening truckload capacity, and a more favorable bid environment as drivers of the better outlook.
Positive
- The company introduced Q2 2026 Adjusted EPS guidance of $0.45–$0.49, implying a strong sequential improvement as one-time Q1 headwinds fade and freight fundamentals improve.
Negative
- Knight-Swift cut its Q1 2026 Adjusted EPS guidance from $0.28–$0.32 to $0.08–$0.10, driven by claims, weather, fuel, tax, and project deferral impacts.
Insights
Knight-Swift sharply cuts Q1 EPS guidance but projects a strong rebound in Q2.
Knight-Swift now expects $0.08–$0.10 Adjusted EPS for Q1 2026, well below its prior $0.28–$0.32 range. The company cites several largely non-recurring items: a sizeable arbitration-related claims charge in LTL, deferred warehousing projects, an adverse Mexico VAT decision, and winter weather plus rising fuel costs.
For Q2 2026, the company guides to Adjusted EPS of $0.45–$0.49, a substantial sequential step-up as those items are not expected to repeat and freight fundamentals improve. Management points to tightening truckload capacity, better bid activity, and ongoing cost initiatives as key supports, while reminding investors that these are forward-looking estimates subject to freight demand, pricing, and execution risks.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Revised Q1 2026 Adjusted EPS guidance: $0.08–$0.10 per share
Prior Q1 2026 Adjusted EPS guidance: $0.28–$0.32 per share
Q2 2026 Adjusted EPS guidance: $0.45–$0.49 per share
+4 more
7 metrics
Revised Q1 2026 Adjusted EPS guidance
$0.08–$0.10 per share
Updated range for first quarter 2026
Prior Q1 2026 Adjusted EPS guidance
$0.28–$0.32 per share
Previously announced range for first quarter 2026
Q2 2026 Adjusted EPS guidance
$0.45–$0.49 per share
Introduced range for second quarter 2026
LTL claims and arbitration impact
$0.08 per share
Negative effect on Q1 2026 results
Deferred warehousing project impact
$0.05 per share
Negative effect on Q1 2026 from project business deferral
Mexico VAT reimbursement decision impact
$0.02 per share
Negative effect related to prior tax years
Weather and fuel impact
$0.05–$0.06 per share
Estimated negative Q1 2026 effect from winter weather and fuel prices
Key Terms
Adjusted EPS, less-than-truckload (LTL) segment, project business, VAT reimbursement, +2 more
6 terms
Adjusted EPS financial
"expects Adjusted EPS(1) for the first quarter of 2026 will range"
Adjusted earnings per share (adjusted eps) is a measure of a company's profit per share that has been modified to exclude certain one-time or unusual items, such as costs from restructuring or asset sales. It provides a clearer picture of the company’s core performance by removing events that may distort the usual earnings. Investors use adjusted eps to better understand a company's ongoing profitability and compare it more accurately over time.
less-than-truckload (LTL) segment financial
"negative impact from claims development in our less-than-truckload (LTL) segment"
project business financial
"negative impact from project business in our warehousing business"
VAT reimbursement financial
"adverse decision on VAT reimbursement in Mexico related to prior tax years"
forward-looking statements regulatory
"This press release contains certain statements that may be considered forward-looking statements"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
freight market fundamentals financial
"because freight market fundamentals are improving exiting the quarter"
Earnings Snapshot
Q1 2026 Adjusted EPS guidance: $0.08–$0.10 · Guidance included
Q1 and Q2 2026
Q1 2026 Adjusted EPS guidance
$0.08–$0.10
cut from prior $0.28–$0.32 range
Q2 2026 Adjusted EPS guidance
$0.45–$0.49
sequentially higher than revised Q1 range
Guidance
Company highlights one-time Q1 headwinds and improving freight market conditions as drivers of a stronger Q2 2026 outlook.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
___________________________________________________________________________________________________________________________________
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15(d) of The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): April 16, 2026
___________________________________________________________________________________________________________________________________
___________________________________________________________________________________________________________________________________
(Exact name of registrant as specified in its charter)
___________________________________________________________________________________________________________________________________
| (State or other jurisdiction of incorporation) | (Commission File Number) | (IRS Employer Identification No.) | |||||||||||||||
(Address of principal executive offices and zip code)
(602 ) 269-2000
(Registrant's telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
| Check the appropriate box below if the Form 8-K is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions: | |||||||||||||||||
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||||||||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||||||||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||||||||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||||||||||||||
| Securities registered pursuant to Section 12(b) of the Act: | |||||||||||||||||
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
| ITEM 2.02 | RESULTS OF OPERATIONS AND FINANCIAL CONDITION | ||||
On April 16, 2026, Knight-Swift Transportation Holdings Inc., a Delaware corporation (the "Company"), announced updates to its earnings guidance for the first quarter of 2026 and announced earnings guidance for the second quarter of 2026.
| ITEM 9.01 | FINANCIAL STATEMENTS AND EXHIBITS | ||||
(d) Exhibits
| Exhibit | Description | |||||||
Exhibit 99 | Press Release: Knight-Swift Transportation Holdings Inc. Announces Updated Earnings Guidance | |||||||
Exhibit 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document) | |||||||
The information in this Current Report that is furnished under this Item 2.02, including the exhibit hereto, shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liability of that section, or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such a filing. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including, without limitation, statements relating to our declaration of quarterly dividends. Forward-looking statements are based on the current beliefs, assumptions, and expectations of management and current market conditions. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Please refer to the last paragraph of the accompanying press release and various disclosures by the Company in other releases, stockholder reports, and filings with the Securities and Exchange Commission for information concerning risks, uncertainties, and other factors that may affect future results.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Knight-Swift Transportation Holdings Inc. | |||||||||||||||||
| (Registrant) | |||||||||||||||||
| Date: | April 16, 2026 | /s/ Andrew Hess | |||||||||||||||
| Andrew Hess | |||||||||||||||||
| Chief Financial Officer | |||||||||||||||||
Exhibit 99
KNIGHT-SWIFT TRANSPORTATION HOLDINGS INC.
ANNOUNCES UPDATED FIRST QUARTER EARNINGS GUIDANCE AND INTRODUCES SECOND QUARTER GUIDANCE
PHOENIX, ARIZONA —
Knight-Swift Transportation Holdings Inc. (NYSE: KNX) (the "Company" or "Knight-Swift") today announced an update to its earnings guidance for the first quarter of 2026 and introduced guidance for second quarter operating performance.
Based on preliminary results and a number of developments largely isolated to the first quarter, the Company now expects Adjusted EPS(1) for the first quarter of 2026 will range from $0.08 to $0.10 (which is an update from the previously-announced expectation of $0.28 to $0.32). The revised first quarter earnings guidance reflects the following developments, which affect both GAAP and non-GAAP results for the quarter:
•$0.08 per share negative impact from claims development in our less-than-truckload (LTL) segment, primarily related to a large unfavorable arbitration award on a 2022 incident
•$0.05 per share negative impact from project business in our warehousing business included in our All Other Segments being deferred into the second and third quarters, partly attributable to the weather-related disruption in the first quarter
•$0.02 per share negative impact for an adverse decision on VAT reimbursement in Mexico related to prior tax years
•An estimated $0.05 - $0.06 per share negative impact due to severe winter weather disruptions in January and sharply rising fuel prices in March
Additionally, the Company expects Adjusted EPS(1) for the second quarter of 2026 to range from $0.45 to $0.49. This range represents a larger than normal sequential increase in quarterly results as the first quarter events cited above are not expected to recur and because freight market fundamentals are improving exiting the quarter. The Company’s projection reflects recent trends in volumes, spot rates, and bid activity, as well as expectations for a continued seasonal build in freight demand for both truckload and less-than-truckload services.
Adam Miller, CEO of Knight-Swift commented, “While the winter weather negatively impacted volumes and operating costs more than typical for a first quarter, it also exposed the reduction in truckload capacity to all stakeholders, which is very meaningful for ongoing bid activity. Similarly, the rapid increase in fuel costs was a headwind to earnings in March, but we believe this will add to the existing downward trend in supply in the truckload industry. The truckload market continues to tighten, and the bid environment is rapidly evolving while our leading presence in the one-way market grows increasingly valuable to shippers. All things considered, we are more optimistic about the earnings opportunity for our businesses over the next several quarters than we were three months ago. We expect to build momentum in the coming months as more bids run their course and new pricing and volume awards are realized in the operating results, as we continue our cost and operational initiatives, and as we anticipate more spot and project opportunities than we have seen in recent years.”
The Company’s Adjusted EPS(1) ranges are based on the current freight market, recent trends, and the current beliefs, assumptions, and expectations of management.
1Our calculation of Adjusted EPS starts with GAAP diluted earnings per share and adds back the after-tax impact of intangible asset amortization as well as non-cash impairments and certain unusual items, if any.
About Knight-Swift
Knight-Swift Transportation Holdings Inc. is one of North America's largest and most diversified freight transportation companies providing multiple truckload, LTL, intermodal and logistics services. Knight-Swift uses a nationwide network of business units and terminals in the United States and Mexico to serve customers throughout North America. In addition to operating the country's largest truckload fleet, Knight-Swift also contracts with third-party equipment providers to provide a broad range of transportation services to our customers while creating quality driving jobs for our driving associates and successful business opportunities for independent contractors.
Forward-Looking Statements
This press release contains certain statements that may be considered forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and such statements are subject to the safe harbor created by those sections and the Private Securities Litigation Reform Act of 1995, as amended. Such statements may be identified by their use of terms or phrases such as "believe," "may," "could," "will," "would," "should," "expects," "designed," "likely," "foresee," "goals," "seek," "target," "forecast," "estimates," "projects," "anticipates," "plans," "address," "intends," "hopes," "strategy," "objective," "mission," "continue," "maintain," "ongoing," "outlook," "potential," "feel," "predicts," "budgets," and similar terms and phrases. All statements, other than statements of historical or current fact, are statements that could be deemed forward-looking statements, including, without limitation, statements relating to expected Adjusted EPS, the future freight environment (including, without limitation, rates, volumes, capacity, project opportunities, and seasonality), and the expected impact of our cost and execution initiatives. Forward-looking statements are inherently subject to risks and uncertainties, some of which cannot be predicted or quantified, which could cause future events and actual results to differ materially from those set forth in, contemplated by, or underlying the forward-looking statements. Forward looking statements are subject to various risks and uncertainties, including, but not limited to current beliefs, assumptions, and expectations of management, and those risks, uncertainties, and other factors identified from time-to-time in our filings with the Securities and Exchange Commission. Our preliminary results for the first quarter of 2026 have not been subjected to all the review procedures associated with the release of actual financial results and are premised on certain assumptions. Readers should review and consider the factors that may affect future results and other disclosures in Part I, Item 1A., Risk Factors, in Knight-Swift’s Annual Report on Form 10-K for the year ended December 31, 2025, and various disclosures in other press releases, stockholder reports, and filings with the Securities and Exchange Commission. We expressly disclaim any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein.
Contact: Adam Miller, CEO, Andrew Hess, CFO, or Brad Stewart, Treasurer and SVP - (602) 606-6349
FAQ
What new earnings guidance did Knight-Swift (KNX) provide for Q1 2026?
Knight-Swift now expects Q1 2026 Adjusted EPS of $0.08 to $0.10, sharply below its prior range of $0.28 to $0.32, reflecting several adverse items including claims, weather, fuel costs, and project timing.
How did Knight-Swift (KNX) change its earnings outlook versus previous Q1 2026 guidance?
The company reduced Q1 2026 Adjusted EPS guidance from $0.28–$0.32 to $0.08–$0.10. Management links the downgrade to an unfavorable LTL arbitration award, deferred warehousing projects, a Mexico VAT decision, and winter weather plus fuel headwinds.
What is Knight-Swift’s Adjusted EPS guidance for Q2 2026?
Knight-Swift expects Q2 2026 Adjusted EPS of $0.45 to $0.49. The company anticipates a stronger quarter as Q1-specific disruptions subside and freight market conditions, including volumes, spot rates, and bid activity, continue to improve.
Which factors hurt Knight-Swift’s Q1 2026 earnings outlook?
Key headwinds include a $0.08 per share hit from LTL claims and arbitration, $0.05 from deferred warehousing project business, $0.02 from an adverse Mexico VAT decision, and $0.05–$0.06 from severe weather and rising fuel prices.
How does Knight-Swift (KNX) define Adjusted EPS in this guidance?
Knight-Swift’s Adjusted EPS starts with GAAP diluted earnings per share and adds back the after-tax impact of intangible asset amortization plus non-cash impairments and certain unusual items, if any. This measure is intended to reflect underlying operating performance more clearly.
What freight market trends support Knight-Swift’s Q2 2026 guidance?
Management notes improving freight fundamentals, including better volumes, tightening truckload capacity, evolving bid activity, and expectations for seasonal demand strength. They believe these trends, along with cost and operational initiatives, support the higher Q2 2026 Adjusted EPS range.