Shares of C.H. Robinson surged more than 20 per cent to a record high on Thursday as investors cheered the global freight forwarder's quarterly profit beat due to AI-driven efficiencies at a time when the rest of the logistics sector has struggled.

The U.S.'s largest freight broker has been using artificial intelligence to automate tasks such as generating shipping quotes, scheduling pickups and deliveries and tracking shipments. This has helped speed up its operations and reduce reliance on manual work.

"We believe that CHRW's scale and first mover advantage will allow for continued productivity and share gains in the coming years, and management has shown its operating model is differentiated," Stephens analyst Reed Seay said in a note.

The company's adjusted profit of $1.40 per share for the quarter beat analysts' average estimate of $1.30, according to data compiled by LSEG.

The beat was helped by a 12.6 per cent decline in operating expenses from a year ago. The company's employee headcount was down 10.8 per cent.

"The transition to agentic AI to complement the large productivity improvements already enacted by generative AI, give management confidence to line-of-sight cost takeout and further margin improvement, even without market help," Evercore ISI analyst Jonathan Chappell said.

C.H. Robinson managed to grow shipment volumes in both its truckload and less-than-truckload segments, helping its North American Surface Transportation segment post a 1.1 per cent rise in revenue.

Meanwhile, the U.S. freight industry has been facing subdued volumes, while excess capacity has kept rates under pressure. The trend has forced logistics firms to tighten spending and operate with greater discipline.

C.H. Robinson's shares trade at a 12-month forward price-to-earnings ratio of 23.49, compared with the industry median of 16.32.

C.H. Robinson's shares hit record high, defying freight slump with AI-driven gains