GXO shares rise 9.4% after Q3 organic sales growth hits 6.4%
GXO Logistics shares rose 9.4% in regular trading on Nov. 4. Third-quarter revenue of $3.59 billion was in line with the $3.58 billion consensus estimate, and adjusted EPS of 89 cents topped the 87-cent estimate.
Key takeaways
- GXO Logistics (GXO) reported third-quarter 2026 revenue of $3.59 billion, in line with the consensus estimate, and adjusted EPS of 89 cents against an 87-cent estimate. Organic revenue grew 6.4%. The company kept its 2026 guidance consistent with its prior outlook.
GXO Logistics (GXO) shares rose 9.4% in regular trading as of 3:59 p.m. ET on Nov. 4, from a regular-session close of $52.03.
GXO Logistics (GXO) said on Nov. 3 that third-quarter revenue rose 5.7% to $3.59 billion, in line with the $3.58 billion consensus estimate, while adjusted earnings per share reached 89 cents against an 87-cent estimate.
A regulatory filing showed organic revenue growth reached 6.4%, which the company said was the strongest in over three years.
Here's how the company did:
- Revenue: $3.59 billion vs. $3.40 billion a year earlier
- Adjusted EPS: 89 cents vs. 79 cents a year earlier, against an 87-cent consensus estimate
- Adjusted EBITDA: $251 million, flat from a year earlier
- Net income attributable to GXO: $64 million vs. $59 million a year earlier
Adjusted EBITDA, or earnings before interest, taxes, depreciation and amortization, was flat at $251 million. Adjusted diluted earnings per share rose 13% from a year earlier.
Commercial momentum
New business wins reached $375 million in the quarter, up 34% from a year earlier.
The company said about 40% of new business wins year to date came from strategic growth verticals.
Expected incremental revenue for 2027 from contracts won through the third quarter is $630 million. A year earlier, the comparable figure was $690 million. The company's total sales pipeline stood at $3.1 billion.
2026 guidance
The company gave full-year 2026 guidance of 4% to 5% organic revenue growth, adjusted EBITDA of $945 million to $965 million, and adjusted diluted EPS of $2.95 to $3.15.
It also expects free cash flow conversion of 30% to 40%, based on current exchange rates. The company said the outlook was consistent with its prior outlook.
Cash flow and leverage
Operating cash flow was $156 million, down from $232 million a year earlier. Free cash flow was $85 million, against $187 million.
Net leverage was 2.7 times, unchanged from a year earlier. Operating return on invested capital was 46%, against 49% a year earlier, the company said. Its long-term target is above 30%.