GXO raises 2026 guidance after strong first-quarter growth

GXO Logistics reported strong first-quarter 2026 results, driven by revenue growth, higher profitability, and increasing demand across strategic sectors including aerospace, technology, industrial, and life sciences.

Revenue and profitability improve

GXO posted:

• Revenue of $3.3 billion, up 10.8% year over year
• Organic revenue growth of 4.1%
• Adjusted EBITDA of $200 million, compared with $163 million a year earlier
• Adjusted diluted EPS of $0.50, up from $0.29 in Q1 2025

Net income reached $5 million, compared with a net loss of $95 million in the same period last year.

New business wins and record pipeline

The company secured:

• $227 million in new business wins during the quarter
• Approximately 40% of wins in higher-margin sectors such as:
  • Aerospace & defense
  • Technology
  • Industrial
  • Life sciences

GXO also reported a record sales pipeline of $2.7 billion, with particularly strong momentum in North America.

According to CEO Patrick Kelleher:

“Our commercial momentum is building, especially in North America where our pipeline grew 35% sequentially.”

Focus on AI and automation

GXO said it continues expanding investments in:

• Artificial intelligence
• Robotics
• Warehouse automation
• Standardized operational systems

The company described AI and next-generation automation as central pillars of its long-term growth strategy.

Guidance raised for 2026

Following the stronger-than-expected quarter, GXO increased its full-year outlook:

• Organic revenue growth: 4%–5%
• Adjusted EBITDA: $935M–$975M
• Adjusted diluted EPS: $2.90–$3.20
• Free cash flow conversion: 30%–40%

The updated guidance reflects continued confidence in demand and operational performance despite broader economic uncertainty.

Outlook

GXO’s results highlight continued resilience in the contract logistics sector, supported by:

• Growth in strategic industries
• Expanding automation adoption
• Increasing outsourcing demand

The company is expected to provide additional details on its long-term strategy during its investor day later this year.