Q3 financial performance and key metrics

GXO Logistics reported a company record for quarterly revenue in the third quarter, generating $3.4 billion, an 8% increase year over year. Organic revenue rose 4% during the period. Net income totaled $60 million, up 42% from the prior year, and adjusted earnings per share came in at $0.79, ahead of Wall Street estimates of $0.77.

CEO transition and strategic emphasis

Patrick Kelleher led his first earnings call as GXO chief executive officer after succeeding Malcolm Wilson earlier this year. Kelleher said the company is starting a new chapter focused on accelerating growth and expanding margins, and he praised the quality of GXO's operations and teams since joining the business in August.

Management commentary on the quarter

Kelleher highlighted several positives from the quarter, including double-digit adjusted EBITDA growth and a strong commercial pipeline valued at $2.3 billion. He noted new business wins rose 24% year over year and that the integration of Wincanton is moving quickly with synergy realization on track. GXO reaffirmed its full-year guidance as the company approaches year-end.

Primary drivers behind the results

Executives attributed the record revenue to new deals closed earlier in the year and to low customer churn through the end of Q3. Management also pointed to disciplined cost control, particularly around labor, as a contributor to margin expansion and overall performance.

Industry verticals and macroeconomic influences

GXO serves a mix of end markets, with management estimating roughly 70% of revenue as consumer-focused and about 30% as B2B. The company reported growing momentum in B2B pipelines such as aerospace and defense, industrial, and life sciences.

Management cited several macro trends supporting demand: tariffs and higher defense spending boosting aerospace and defense activity; reshoring of manufacturing and increased infrastructure work in the U.S., including data centers tied to AI development; and continued growth in life sciences driven by efforts to reduce healthcare costs.

Mergers and acquisitions strategy

Kelleher emphasized that organic growth is the top priority for GXO, while M&A remains a possible, but disciplined, complement. Any acquisition activity would focus on opportunities in North America and other global markets, and on the strategic verticals of aerospace and defense, industrial, and life sciences.

Foreign Trade Zones and Asia footprint

GXO continues to offer Foreign Trade Zone services and reported operating more than 70 FTZ or bonded warehouses worldwide. The company recently signed a lease connected to the Johor-Singapore Special Economic Development Zone in Malaysia, designed to support intra-Asia flows and improve efficiencies moving goods into and out of Singapore.

Peak season planning and workforce outlook

For the 2025 peak season, GXO said it positioned labor based on customer forecasts that anticipate low single-digit increases versus last year’s peak. Management will assess the season's outcome after Black Friday and the holiday period. The company increased hiring for peak season and found it easier to secure labor this year than in recent years.

Looking to 2026, GXO plans to add roles across warehouses and in functions that support robotics, automation, and AI implementation as organic growth remains a priority.

AI and technology initiatives

GXO pursues a two-track approach to AI. First, it is developing proprietary AI tools delivered through its GXO IQ platform to improve warehouse and supply chain operations. Those tools, which are linked to warehouse management systems across roughly 1,200 distribution centers, focus on functions such as slotting, picking optimization, replenishment optimization, and forecasting.

Second, GXO is adopting third-party AI solutions where appropriate to enhance business processes in areas like HR, IT, and finance rather than building every capability in-house.

Outlook and investor communications

Management said it will measure progress against goals to amplify growth in North America and within the three strategic verticals. A clearer strategic roadmap will be shared at GXO's 2026 investor day as the company aims to translate current momentum into sustained value for customers and shareholders.