GXO Organic Growth Hits Three-Year High

The Tip Desk · November 10, 2026 · 3 min read

Organic revenue rose 6.4% in the third quarter as GXO booked $375 million of new business and a record $3.1 billion pipeline.

GXO Logistics, Inc. (GXO) posted organic revenue growth of 6.4% in the third quarter of 2026, the fastest pace in more than three years, after 3.4% in the second quarter and 4.1% in the first.

Reported revenue was $3.6 billion, up 5.7% from $3.4 billion a year earlier. Organic revenue, which excludes foreign-currency effects, was $3.61 billion.

Chief executive Patrick Kelleher said the strategy put in motion over the past year was delivering results, including faster organic growth, a second consecutive quarter of new-business wins up more than 30% year over year, and a record sales pipeline.

New business wins were $375 million, up 34% year over year, after $410 million in the second quarter and $227 million in the first. The company said about 40% of year-to-date wins were in strategic growth verticals — aerospace and defense, technology, industrial and life sciences. Year-to-date wins were more than $1 billion, nearly matching all of 2025 with a quarter still to go. The sales pipeline reached a record $3.1 billion, up more than 30% year over year, after a record $2.7 billion at the end of the first quarter.

Adjusted EBITDA was $251 million, unchanged from the year-ago quarter, after rising to $219 million from $212 million in the second quarter and $200 million in the first. Adjusted EBITDA margin was 7.0%, down from 7.4% a year earlier. Operating income fell to $96 million from $118 million, and the operating margin compressed to 2.7% from 3.5%. Adjusted diluted earnings per share increased to $0.89 from $0.79.

Net income was $65 million, compared with $60 million a year earlier. Diluted earnings per share were $0.56, compared with $0.51.

Cash flow from operations declined to $156 million from $232 million a year earlier. Free cash flow was $85 million, down from $187 million.

The company repurchased $84 million of common stock in the quarter, bringing year-to-date repurchases to $100 million, or 2.1 million shares at an average price of $47.46 a share. As of September 30, 2026, $200 million remained available under the existing share-repurchase authorization. Cash and cash equivalents excluding restricted cash were $340 million, down from $769 million at June 30. Total debt was $2.8 billion and net debt $2.5 billion.

United Kingdom revenue was $1.75 billion, United States $846 million, Netherlands $263 million, France $216 million, Spain $184 million, Italy $111 million and other $219 million. Omnichannel retail revenue was $1.69 billion, technology and consumer electronics $498 million, industrial and manufacturing $405 million, food and beverage $351 million, consumer packaged goods $333 million and other $314 million.

GXO reaffirmed full-year 2026 guidance of 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%, after updating those ranges in the second quarter. Guidance reflects current foreign-currency rates.

Kelleher said the company is improving execution, particularly in North America, and advancing productivity initiatives including a unified labor-management system and continued deployment of GXO IQ. The company will host its 2026 Investor Day on November 16, 2026, at the New York Stock Exchange, where management will discuss long-term strategy, financial framework and value-creation opportunities.