GXO Logistics Q3 2026: Revenue Up 5.7%, Wins Hit $375M

GXO Logistics, Inc. (NYSE: GXO) reported third quarter 2026 revenue of $3.6 billion on 3 November 2026, up 5.7% year over year from $3.4 billion, with organic revenue growth of 6.4%. Net income attributable to GXO was $64 million and diluted earnings per share was $0.56, against $59 million and $0.51 a year earlier. Adjusted diluted EPS rose to $0.89 from $0.79. The company said it won $375 million of new business in the quarter, up 34% year over year, and reaffirmed full-year guidance.

Context — why GXO's third quarter matters now

The quarter marks the second consecutive period in which GXO's new business wins grew more than 30% year over year, a streak the company tied to a strategy it says it set in motion over the past year. Chief executive Patrick Kelleher described the period as delivering the fastest organic growth in more than three years, with year-to-date wins already above $1 billion, nearly matching all of 2025 with a quarter still to run.

That framing matters because contract logistics revenue is booked over multi-year terms. Wins signed now convert into reported revenue later, so the sales pipeline is the closest thing to a forward order book the company discloses. GXO put that pipeline at a record $3.1 billion, up more than 30% year over year.

The mix of those wins is the second lever. Roughly 40% of year-to-date wins landed in what GXO calls strategic growth verticals — aerospace & defense, technology, industrial and life sciences. Those are not the ecommerce categories that built the sector's growth story, so a shift toward them changes the customer concentration and contract profile of future revenue.

Against that, the headline revenue comparison is flattered by currency. Organic growth of 6.4% strips out foreign exchange, and it exceeds reported growth of 5.7%, meaning currency translation subtracted from the top line rather than adding to it.

The company did not disclose the contract terms, duration or margin profile of the $375 million in quarterly wins.

Data — what the numbers show

Revenue of $3,590 million compared with $3,395 million in the third quarter of 2025. Direct operating expense rose to $3,064 million from $2,857 million, while selling, general and administrative expense was flat at $285 million in both periods.

Operating income fell to $96 million from $118 million, a decline the income statement attributes to a $24 million net loss on divestiture of business recognized in the first nine months, against none in the prior-year period, alongside higher transaction and integration costs of $26 million versus $14 million.

Adjusted EBITDA was $251 million, identical to the third quarter of 2025. Adjusted diluted EPS nonetheless rose to $0.89 from $0.79, so the per-share gain came from below the operating line rather than from EBITDA expansion.

Cash generation moved the other way. Cash flow from operations was $156 million against $232 million a year earlier, and free cash flow was $85 million against $187 million.

Metric	Q3 2026	Q3 2025
Revenue	$3,590m	$3,395m
Adjusted EBITDA	$251m	$251m
Adjusted diluted EPS	$0.89	$0.79
Free cash flow	$85m	$187m

On the balance sheet, cash and cash equivalents excluding restricted cash stood at $340 million, total debt at $2.8 billion and net debt at $2.5 billion as of 30 September 2026. Cash fell from $854 million at 31 December 2025.

Analysis — what it means for logistics and industrial tickers

GXO's results land in a contract logistics market where the largest players compete on automation and labor productivity rather than headline pricing. The company pointed to a unified labor management system rollout and continued deployment of GXO IQ across its footprint as the mechanisms it expects to support future margin expansion.

That is the crux of the bull case: revenue growth is already visible, but adjusted EBITDA was flat year over year at $251 million, so operating use has not yet appeared. Adjusted diluted EPS growth of roughly 13% came while EBITDA was unchanged, which means the improvement is not yet coming from the core operating line.

Second-order effects run through the customer verticals GXO named. Wins concentrated in aerospace & defense, technology, industrial and life sciences imply future revenue tied to capital-goods and regulated-sector supply chains rather than consumer discretionary volumes. That mix could prove less cyclical than ecommerce fulfillment, but it also brings longer qualification cycles.

The counter-argument is cash. Free cash flow fell to $85 million from $187 million, and the company's own full-year target is free cash flow conversion of 30% to 40% of adjusted EBITDA — a range that implies meaningful fourth-quarter conversion is required to hit it.

Positioning reflects that tension. GXO repurchased $84 million of stock in the quarter and $100 million year to date, 2.1 million shares at an average price of $47.46, with $200 million remaining under its authorization. Buybacks at that scale against a $2.5 billion net debt position signal management sees the equity as undervalued rather than the balance sheet as over-levered.

Outlook — what to watch next

GXO reaffirmed full-year 2026 guidance: organic revenue growth of 4% to 5%, adjusted EBITDA of $945 million to $965 million, adjusted diluted EPS of $2.95 to $3.15, and free cash flow conversion of 30% to 40%. The company said the guidance reflects then-current foreign currency rates.

The arithmetic sets the bar for the fourth quarter. With nine-month revenue of $10,329 million already booked, the full-year organic target implies the pace of growth must hold through the final period, and adjusted EBITDA must reach roughly $190 million to $210 million in the quarter to land inside the range.

The nearest catalyst is the company's 2026 Investor Day on 16 November 2026 at the New York Stock Exchange, where management said it will discuss long-term strategy, financial framework and value creation opportunities. GXO has not disclosed targets beyond 2026.

A second catalyst is the fourth-quarter and full-year print itself, which will show whether the sales pipeline converts and whether free cash flow conversion reaches the guided band. The company did not give a date for that release.

GXO's conference call is scheduled for 4 November 2026 at 8:30 a.m. Eastern Time, with the webcast archived until 19 November 2026.

Frequently Asked Questions

What does GXO's $375 million in new business wins actually mean?

New business wins are annualized revenue GXO expects from contracts signed in the period. The $375 million figure, up 34% year over year, is not revenue recognized in the third quarter — it is a forward indicator that converts over the contract term. The company reported a record $3.1 billion sales pipeline alongside it, up more than 30% year over year, and did not disclose the duration or margin terms of the individual contracts.

Why did GXO's adjusted EPS rise if adjusted EBITDA was flat?

Adjusted EBITDA held at $251 million in both the third quarter of 2026 and 2025, yet adjusted diluted EPS climbed to $0.89 from $0.79. The gap comes from items below the operating line, including a lower income tax expense of $7 million versus $28 million a year earlier, and a smaller diluted share count of 114,636 thousand against 115,329 thousand, reflecting the buyback.

What is GXO's free cash flow conversion target and how far is it from current levels?

GXO guides full-year 2026 free cash flow conversion of 30% to 40%, calculated as free cash flow divided by adjusted EBITDA. Year to date, free cash flow was weaker than 2025: $85 million in the third quarter versus $187 million a year earlier, and $156 million of operating cash flow versus $232 million. Hitting the band requires a strong fourth quarter.

Bottom Line

GXO's pipeline is growing faster than its profit: flat adjusted EBITDA and halved free cash flow leave the fourth quarter carrying the guidance.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. CFD trading carries high risk of capital loss.