GXO Logistics reported third-quarter revenue of $3.59 billion, a 5.7% increase from a year earlier, as the global contract logistics provider secured more new business and expanded its sales pipeline to record levels.
The Greenwich, Connecticut-based company (NYSE: GXO) said Tuesday that organic revenue grew 6.4% during the quarter ended Sept. 30, its fastest pace in more than three years.
GXO also reported $375 million in new business wins, a 34% year-over-year increase and the second consecutive quarter in which new contract wins grew more than 30%.
The company’s sales pipeline reached a record $3.1 billion, up more than 30% from a year earlier, signaling continued demand for outsourced warehousing, distribution and supply chain services.
“The new strategy we put in motion over the past year is delivering results,” GXO CEO Patrick Kelleher said in a news release.
Kelleher said the company is winning more business across its core markets and strategic growth sectors while improving its ability to convert opportunities into revenue.
GXO Q3 financial performance
GXO reported net income of $65 million, compared with $60 million during the same period in 2025. Diluted earnings per share increased to 56 cents from 51 cents.
Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) remained unchanged at $251 million, while adjusted diluted earnings per share rose to 89 cents from 79 cents.
However, operating income declined to $96 million from $118 million, and adjusted EBITDA margin narrowed to 7% from 7.4%.
The company also reported a decline in operating cash flow to $156 million from $232 million a year earlier. Free cash flow fell to $85 million from $187 million.
Direct operating expenses increased to $3.06 billion from $2.86 billion, outpacing revenue growth and contributing to pressure on operating profitability.
GXO Logistics: Third-quarter year-over-year comparison
Three months ended Sept. 30; dollar amounts in millions unless otherwise indicated.
| Financial metric | Q3 2026 | Q3 2025 | YoY change |
| Total revenue | $3,590 | $3,395 | +5.7% |
| Organic revenue growth | 6.4% | — | — |
| Operating income | $96 | $118 | -18.6% |
| Operating margin | 2.7% | 3.5% | -0.8 pp |
| Net income | $65 | $60 | +8.3% |
| Diluted EPS | $0.56 | $0.51 | +9.8% |
| Adjusted diluted EPS | $0.89 | $0.79 | +12.7% |
| Adjusted EBITDA | $251 | $251 | 0.0% |
| Adjusted EBITDA margin | 7.0% | 7.4% | -0.4 pp |
| Adjusted EBITA | $163 | $164 | -0.6% |
| Operating cash flow | $156 | $232 | -32.8% |
| Free cash flow | $85 | $187 | -54.5% |
| Capital expenditures | $74 | $144 | -48.6% |
New contracts drive growth across strategic industries
GXO said its year-to-date new business wins exceeded $1 billion, nearly matching the company’s total contract wins for all of 2025 with one quarter remaining.
Around 40% of those wins came from strategic growth industries, including aerospace and defense, technology, industrial operations and life sciences.
The company’s technology and consumer electronics business generated $498 million in third-quarter revenue, up 18.6% from $420 million a year earlier.
Industrial and manufacturing revenue increased 4.9% to $405 million, while omnichannel retail, GXO’s largest customer segment, generated $1.69 billion, up 2.7%.
Food and beverage revenue declined 5.4% to $351 million.
The United Kingdom remained GXO’s largest geographic market, generating $1.75 billion in quarterly revenue, an increase of 7.6%.
U.S. revenue rose 5.6% to $846 million, compared with $801 million during the third quarter of 2025.
GXO reaffirms 2026 financial outlook
Despite lower operating margins and cash flow during the quarter, GXO reaffirmed its full-year 2026 financial guidance.
The company continues to project:
- Organic revenue growth of 4% to 5%.
- Adjusted EBITDA of $945 million to $965 million.
- Adjusted diluted earnings per share of $2.95 to $3.15.
- Free cash flow conversion of 30% to 40%.
Through the first nine months of 2026, GXO generated $10.33 billion in revenue, up 6.8% from $9.67 billion during the same period last year.
Nine-month adjusted EBITDA totaled $670 million, compared with $626 million a year earlier.
GXO also repurchased $84 million in common stock during the third quarter, bringing year-to-date share repurchases to $100 million.
As of Sept. 30, the company reported $340 million in cash and cash equivalents and approximately $2.8 billion in outstanding debt.
GXO will hold its third-quarter earnings conference call at 8:30 a.m. Wednesday.
Why it matters: GXO’s accelerating contract wins and record sales pipeline indicate strengthening demand for outsourced logistics services, although declining operating margins and free cash flow highlight the challenge of converting revenue growth into higher profitability.
