GXO Beats as Q3 Organic Revenue Growth Hits 6.4% and Adjusted EPS Reaches $0.89, Outlook Held
New business wins rose 34% to $375M and the pipeline hit a record $3.1B, but free cash flow fell to $85M from $187M.
GXO Logistics (GXO) reported third-quarter 2026 adjusted earnings of $0.89 per share, $0.03 above the consensus of $0.86, on revenue of $3.59 billion, up 5.7% and 1.4% above the $3.54 billion estimate. Organic revenue grew 6.4%, the fastest pace in more than three years, according to the company. GXO reaffirmed its 2026 outlook, including adjusted EPS of $2.95 to $3.15 against a $3.02 consensus. Shares closed at $52.03, down $0.09, before the report.
Third-quarter results
| Metric | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | $3.59B | $3.4B | +5.7% |
| Adjusted EPS | $0.89 | $0.79 | +$0.10 |
| GAAP diluted EPS | $0.56 | $0.51 | +$0.05 |
| Adjusted EBITDA | $251M | About $251M | Flat; margin 7.0% versus 7.4% |
| Operating cash flow | $156M | $232M | -33% |
| Free cash flow | $85M | $187M | -55% |
By our calculation, adjusted EPS rose about 12.7% and beat the consensus by about 3.5%, and free cash flow fell about 55% from a year earlier. Adjusted EBITDA was flat, so the profit growth came from below that line.
Wins and pipeline
New business wins were $375 million, up 34%, and year-to-date wins exceed $1 billion. The sales pipeline reached a record $3.1 billion, up more than 30%. Chief Executive Patrick Kelleher credited the company's strategy for faster organic growth and said GXO is entering 2027 from a position of strength.
2026 outlook reaffirmed
| Item | Guidance | Comparison |
|---|---|---|
| Adjusted EPS | $2.95 to $3.15 | Consensus $3.02, in line |
| Adjusted EBITDA | $945M to $965M | Reaffirmed |
| Organic revenue growth | 4% to 5% | Reaffirmed |
| Free cash flow conversion | 30% to 40% | Reaffirmed |
By our calculation, the EPS midpoint of $3.05 is about 1% above the consensus. Consensus estimates for the fourth quarter are $1.08 per share on revenue of $3.65 billion.
Buybacks and leverage
GXO repurchased $84 million of stock in the third quarter and $100 million year to date, or 2.1 million shares at an average of $47.46, with $200 million of authorization remaining. It ended the quarter with $340 million of cash, $2.8 billion of debt and net leverage of 2.7 times.
What to watch
- Conference call. The call follows Wednesday morning. Listen for the path to a full-year cash flow conversion of 30% to 40% after a weaker third quarter.
- Margins. Whether the 7.0% adjusted EBITDA margin recovers from 7.4% a year ago.
- Investor Day. GXO holds its investor day on Nov. 16 at the NYSE, with its long-term strategy and financial framework.
- Related coverage. See our reports on Fabrinet, the Nasdaq analysis and the Week Ahead preview.
Sources: GXO's investor relations site and its third-quarter 2026 results release. Consensus estimates come from FactSet and may differ by source. Items labeled by our calculation are our own arithmetic. This article is informational only and is not investment advice.
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