North America becomes GXO’s fastest-growing market in Q2, topping $782M 

The company released its second quarter earnings after the market closed on Tuesday.

GXO reported revenue of $3.4 billion in the second-quarter, up 4.3% year over year, but missing Wall Street forecasts of $3.45 billion.

Adjusted EBITDA rose to $219 million, and adjusted diluted earnings per share increased to 59 cents. The adjusted EPS results topped Wall Street expectations of 58 cents per share.

The company generated $76 million in operating cash flow and $12 million in free cash flow during the quarter.

Kelleher said approximately 40% of new business wins came from four strategic verticals the company has prioritized: aerospace and defense, technology and data centers, industrials and life sciences. 

“We’re winning more and we’re winning better,” Kelleher said, highlighting expanded relationships with customers including Nike, PepsiCo, Marks & Spencer, Boeing and Raytheon, along with a major new hyperscaler data center customer.

Executives said they see North America as GXO’s largest long-term growth opportunity.

Kelleher said commercial changes implemented over the past year have significantly improved the company’s performance in the region, with first-half North American wins increasing 85% from the same period a year ago.

Chief Strategy Officer Kristine Kubacki added that North America’s sales pipeline expanded 34% year over year, helping push GXO’s overall commercial pipeline back to $2.7 billion only weeks after the quarter ended.

Executives said the company now has more than $1 billion of incremental revenue already secured for 2026 and approximately $353 million already committed for 2027.

Artificial intelligence was one of the major themes throughout the earnings call.

Kelleher said GXO IQ, the company’s proprietary AI platform, has shifted from launch mode into scaled deployment, with the technology expected to reach approximately 50 facilities by the end of 2026.

The platform is being used to improve demand forecasting, inventory replenishment, labor planning and warehouse picking. GXO officials also expect to deploy around 20,000 robots across its global network this year.

While analysts asked about humanoid robots, Kelleher said GXO remains in the testing phase.

“We have done 45 pilots on humanoids so far,” he said. “We have not achieved ROI on humanoids yet. I think we are a couple of years away from that.”

Chief Financial Officer Mark Suchinski told analysts that expanding profitability is now a primary focus.

Suchinski said investments in standardized operating dashboards, labor management systems, procurement and automation are expected to begin producing measurable margin improvements later this year.

Kelleher said long-term profitability is a primary focus for the company.

“We lag our competitive peers in terms of EBITDA and EBIT performance,” he said. “We’re very focused on closing that gap and then eclipsing the performance of our peers.”

Executives also noted that the recently acquired Wincanton business remains on track to deliver $60 million in annual run-rate cost synergies by year-end, with approximately 90% of planned integration actions already completed.

The company maintained its 2026 guidance for 4% to 5% organic revenue growth, 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%.

GXO Q2 2026 financial highlights

Why it matters: As shippers seek productivity gains and labor efficiencies, GXO executives said automation is becoming an increasingly important competitive advantage for third-party logistics providers.