QXO Q3 2026: Revenue Surges 79% but Acquisition Costs Bite EPS
As seen on the 24/7 Wall St. homepage on November 12, 2026.
Brad Jacobs' roll-up is working on the top line, with sales up 79% year over year as TopBuild's first full quarter added $1.64 billion. The adjusted earnings miss is the bill for that growth: deal-related amortization and interest pushed GAAP to a $0.17 per share loss. The board also authorized a $500 million buyback.
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QXO reported $4.9 billion in net sales for the third quarter of 2026, beating the $4.83 billion consensus by 1.44% and marking a 79% jump from the same period a year ago. The single biggest driver was TopBuild, acquired on July 1, 2026, which contributed $1.64 billion in net sales during its first full quarter inside QXO. Kodiak Building Partners, folded in on April 1, 2026, added another $589 million.
The earnings picture was messier. Adjusted EPS came in at $0.13, missing the $0.14 consensus by 4.2%, as the company absorbed $288 million in deal-related amortization and $163 million in net interest expense tied to debt raised for the Beacon and TopBuild acquisitions. At the GAAP level, QXO posted a loss of $0.17 per share. Adjusted EBITDA nearly doubled to $557 million, however, and the adjusted EBITDA margin edged up to 11.4% from 11.1% a year ago.
Beneath the acquisition-driven headline, some organic trends were encouraging. CEO Brad Jacobs said organic daily revenue trends improved for the second consecutive quarter despite a soft construction market. Companywide pricing rose 2.2% year over year, complementary product sales in the Roofing and Waterproofing segment grew 4.2%, and mechanical insulation distribution revenue climbed 16%, supported by strong data center demand. The TRI-BUILT private label reached a record 10.6% of sales.
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The board authorized a $500 million common share repurchase program with no expiration date, a signal that management views the current stock price as an opportunity even as the balance sheet carries the weight of multiple large deals. Total assets stood at $34.47 billion, more than double year-ago levels, while total liabilities reached $15.85 billion.
Looking ahead, management kept its long-range targets intact: $4 billion in adjusted EBITDA by 2030 from the businesses it already owns, and $50 billion in annual revenue within the decade through organic growth and further acquisitions. Jacobs pointed to cross-selling across a combined customer base of 194,000 accounts and AI-driven sales tools as key levers for accelerating integration and lifting margins over time.
Mentioned: QXO