GXO Logistics Q3 2026: Record Pipeline Powers a Clean Beat

GXO Logistics posted adjusted diluted earnings per share of $0.89 for the third quarter of 2026, beating the consensus estimate of $0.85. Revenue of $3.59 billion came in above expectations and rose 5.7% year over year, with organic revenue growth of 6.4% marking the strongest such result in more than three years.

New business wins hit $375 million in the quarter, up 34% year over year, pushing year-to-date wins above $1 billion and the total sales pipeline to a record $3.1 billion. CEO Patrick Kelleher noted that the year-to-date wins figure nearly matches all of 2025 with a full quarter still remaining, calling it evidence that the company is entering 2027 from a position of strength.

Adjusted EBITDA held flat at $251 million while the adjusted EBITDA margin narrowed to 7.0% from 7.4% a year ago, weighed down by transaction and integration costs that rose to $26 million from $14 million. Free cash flow also softened considerably, falling to $85 million from $187 million in the prior-year quarter, partly reflecting the absence of large asset-sale proceeds that benefited the year-ago period.

On a GAAP basis, operating income declined 18.64% year over year to $96 million, though net income rose 8.47% to $64 million, helped in part by significantly lower income tax expense. GXO also repurchased $84 million of common stock during the quarter, bringing year-to-date buybacks to $100 million across 2.1 million shares at an average price of $47.46, with $200 million still available under its existing repurchase authorization as of September 30, 2026.

Management reaffirmed its full-year 2026 guidance in full, targeting adjusted diluted EPS of $2.95 to $3.15, adjusted EBITDA of $945 million to $965 million, organic revenue growth of 4% to 5%, and free cash flow conversion of 30% to 40%. The company is scheduled to host an Investor Day on November 16 at the New York Stock Exchange, where it plans to present its long-term strategy, financial framework, and value creation outlook, making that event the next key date for anyone following the stock closely.