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GXO Reports Swinging From Loss to Profit in Q1
Sales Pipeline Grows to All-Time High of $2.7 Billion
Key Takeaways:
- GXO reported first-quarter net income of $5 million, compared with a $95 million loss a year earlier.
- Revenue rose 10.8% to $3.3 billion, with growth across all reported industry verticals.
- The company said its sales pipeline reached a record $2.7 billion, supporting expectations for future growth.
GXO Logistics Inc. on May 5 reported first-quarter revenue and earnings growth, supported by a swing from a loss to a profit year over year.
The Greenwich, Conn.-based contract logistics firm posted net income of $5 million, or 3 cents a diluted share, for the three months ending March 31. That compared with a net loss of $95 million, or a loss of 80 cents, a year earlier.
Total revenue increased by 10.8% to $3.3 billion from $3 billion. The company said that the growth in higher-margin verticals included aerospace and defense, technology, industrial and life sciences. GXO also saw demand accelerate, with its sales pipeline growing to an all-time high of $2.7 billion.
“Organic revenue growth was 4% in the quarter, with every region contributing, demonstrating the resilience and global strength of our business model,” CEO Patrick Kelleher said during a call with investors. “We have continued to build on that momentum.”
Kelleher noted the company added $227 million in new business. Technology, including artificial intelligence cloud infrastructure, contributed substantially to that amount.
“These wins demonstrate strong commercial momentum and give us confidence in our ability to accelerate organic growth in 2026,” Kelleher said. “We now have $870 million of expected incremental new business revenue already secured for 2026, up 19% compared to this time last year, giving a strong line of sight into the balance of the year.”
GXO focuses on three priorities to accelerate growth and expand margins: sharpening commercial execution, strengthening operational discipline and being a leader in AI and automation. The company brought in new leadership across commercial operations to execute those strategies.
“We have seen the momentum building, specifically in North America,” Kelleher said. “In the region, we continue to benefit from our leadership position in B2B vertical [markets], particularly aerospace and defense, and data centers.”
GXO Way, a new framework that aims to standardize global operations, was implemented in the quarter, and GXO IQ, an AI-based logistics platform, was scaled up. The deployment of automated solutions also progressed, including the launch of a fleet of robots in the Netherlands, and an autoload solution in Poland.
“It creates ongoing value and strengthens the durability of our partnerships,” Kelleher said. “On humanoids, we will launch more pilots across the U.S. and Europe later this year. Our first-mover advantage is real, and we are building on it.”
Revenue by Vertical
• Omnichannel retail: Increased 9.8% to $1.56 billion from $1.42 billion
• Technology and consumer electronics: Increased 10.2% to $433 million from $393 million
• Industrial and manufacturing: Increased 8.8% to $394 million from $362 million
• Consumer packaged goods: Increased 17.6% to $334 million from $284 million
• Food and beverage: Increased 1% to $317 million from $314 million
GXO ranks No. 3 on the Transport Topics Top 100 list of the largest logistics companies in North America.
Performance that exceeded expectations, thanks to strong collaborative partnerships: GXO’s Q1 2026 financial results are out! https://t.co/uhGf4Txb0Q pic.twitter.com/OHkZyiqkab — GXO (@GXOLogistics) May 5, 2026
