Revenue growth decelerated to 4.3% in 2026Q2, with operating margin at 2.2% and net margin at 0.7%, reflecting persistent cost pressures and limited pricing power.
GXO Logistics, Inc. (GXO) annual income statement — 7-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 |
|---|
| Sales/Revenue | 13.64B | 13.18B | 11.71B | 9.78B | 8.99B | 7.94B | 6.2B | 6.09B |
| Revenue Growth % | 7.55% | 12.55% | 19.75% | 8.73% | 13.26% | 28.17% | 1.66% | - |
| Cost of Goods Sold | 11.79B | 11.65B | 10.27B | 8.4B | 7.77B | 6.97B | 5.49B | 5.41B |
| COGS % of Revenue | - | 88.38% | 87.69% | 85.87% | 86.42% | 87.81% | 88.65% | 88.84% |
| Gross Profit | 1.85B | 1.53B | 1.44B | 1.38B | 1.22B | 968M | 703M | 680M |
| Gross Margin % | 13.53% | 11.62% | 12.31% | 14.13% | 13.58% | 12.19% | 11.35% | 11.16% |
| Gross Profit Growth % | - | 6.25% | 4.27% | 13.19% | 26.14% | 37.7% | 3.38% | - |
| Operating Expenses | 1.44B | 1.11B | 1.22B | 1.06B | 979M | 817M | 687M | 530M |
| OpEx % of Revenue | - | 8.39% | 10.45% | 10.88% | 10.89% | 10.29% | 11.09% | 8.7% |
| Selling, General & Admin | 580.58M | 1.11M | 1.06B | 998M | 886M | 714M | 611M | 514M |
| SG&A % of Revenue | - | 0.01% | 9.06% | 10.21% | 9.85% | 8.99% | 9.86% | 8.43% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 1.1B | 162M | 66M | 93M | 103M | 76M | 16M |
| Operating Income | 411M | 425M | 218M | 318M | 242M | 151M | 16M | 150M |
| Operating Margin % | 3.01% | 3.23% | 1.86% | 3.25% | 2.69% | 1.9% | 0.26% | 2.46% |
| Operating Income Growth % | - | 94.95% | -31.45% | 31.41% | 60.26% | 843.75% | -89.33% | - |
| EBITDA | 881M | 882M | 633M | 679M | 571M | 486M | 339M | 452M |
| EBITDA Margin % | 6.46% | 6.69% | 5.41% | 6.94% | 6.35% | 6.12% | 5.47% | 7.42% |
| EBITDA Growth % | 33.89% | 39.34% | -6.77% | 18.91% | 17.49% | 43.36% | -25% | - |
| D&A (Non-Cash Add-back) | 470M | 457M | 415M | 361M | 329M | 335M | 323M | 302M |
| EBIT | 306.97M | 237M | 249M | 319M | 293M | 174M | 18M | 151M |
| Net Interest Income | -99.97M | -133M | -103M | -53M | -29M | -21M | -24M | -33M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 99.97M | 133M | 103M | 53M | 29M | 21M | 24M | 33M |
| Other Income/Expense | -192M | -321M | -72M | -52M | 22M | 2M | -22M | -32M |
| Pretax Income | 219M | 104M | 146M | 266M | 264M | 153M | -6M | 118M |
| Pretax Margin % | 1.61% | 0.79% | 1.25% | 2.72% | 2.94% | 1.93% | -0.1% | 1.94% |
| Income Tax | 84M | 68M | 8M | 33M | 64M | -8M | 16M | 37M |
| Effective Tax Rate % | 38.36% | 65.38% | 5.48% | 12.41% | 24.24% | -5.23% | -266.67% | 31.36% |
| Net Income | 131M | 32M | 134M | 229M | 197M | 153M | -31M | 60M |
| Net Margin % | 0.96% | 0.24% | 1.14% | 2.34% | 2.19% | 1.93% | -0.5% | 0.98% |
| Net Income Growth % | 107.94% | -76.12% | -41.48% | 16.24% | 28.76% | 593.55% | -151.67% | - |
| Net Income (Continuing) | 135M | 36M | 138M | 233M | 200M | 161M | -22M | 81M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 35M | 32M | 32M | 34M | 33M | 39M | 125M | 130M |
| EPS (Diluted) | 1.13 | 0.28 | 1.12 | 1.92 | 1.67 | 1.32 | -0.27 | 0.52 |
| EPS Growth % | 114.06% | -75% | -41.67% | 14.97% | 26.52% | 588.89% | -151.92% | - |
| EPS (Basic) | - | 0.28 | 1.12 | 1.93 | 1.68 | 1.33 | -0.27 | 0.52 |
| Diluted Shares Outstanding | 115.72M | 116.3M | 119.8M | 119.49M | 117.62M | 115.6M | 114.6M | 114.6M |
| Basic Shares Outstanding | 115.01M | 115.68M | 119.41M | 118.91M | 117.05M | 114.63M | 114.6M | 114.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying GXO stock.
For fiscal year 2025, GXO Logistics, Inc. (GXO) reported total revenue of $13.18B. This represents a 116.2% increase compared to $6.09B in 2019.
GXO Logistics, Inc. (GXO) is profitable, generating $32.0M in net income for the fiscal year ending 2025 with a net profit margin of 0.2%.
GXO Logistics, Inc. (GXO) reported an operating income of $425.0M, resulting in an operating profit margin of 3.2%. This margin reflects the operational efficiency of the business before interest and taxes.
GXO Logistics, Inc. (GXO) generated $1.53B in gross profit for the year, representing a gross profit margin of 11.6%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Labor inflation and integration risks
Metrics are mathematically derived from official filings.
Growth Deceleration Amidst Expansion
Revenue growth slowed to 4.3% in 2026Q2 from 15.9% a year earlier, according to recent financial statements, suggesting a maturing pipeline and potential market saturation in core verticals.
The deceleration from double-digit growth in 2025 to mid-single digits in 2026 indicates that the aggressive acquisition strategy may be yielding diminishing returns. While the Wincanton acquisition adds scale, organic growth appears to be cooling, possibly due to macroeconomic headwinds in e-commerce. Investors should monitor whether new contract wins can reaccelerate growth or if the company is entering a period of consolidation.
Thin Margins Reflect Cost Pressures
Gross margin fluctuated between 10.4% and 15.8% over the past ten quarters, with operating margin averaging around 2.5%, as reported in SEC filings, indicating limited pricing power.
The low gross margin is typical of pass-through logistics, but the volatility suggests sensitivity to labor costs and contract mix. Operating margin compression in 2025Q1 (negative) and 2026Q2 (2.2%) highlights the impact of start-up costs and wage inflation. The company's ability to expand margins hinges on scaling automation and closed-book contracts, which may take time to materialize.
Operating Leverage Elusive
Operating income growth has been inconsistent, with 2026Q2 operating income of $77M on $3.4B revenue, versus $137M in 2025Q4, based on reported data, suggesting limited operating leverage.
Despite revenue growth, operating income has not scaled proportionally, indicating that SG&A and implementation costs are rising with expansion. The negative operating income in 2025Q1 and 2026Q1 (near zero) underscores the difficulty in converting revenue growth to profit. This suggests that the business model requires significant fixed investment, and margin expansion may be gradual.
Earnings Volatility and SBC Impact
Net income swung from -$96M in 2025Q1 to $59M in 2025Q3, with stock-based compensation averaging $11M per quarter, as per financial statements, indicating earnings quality concerns.
The wide swings in net income, including a loss in 2025Q1, suggest that one-time items and integration costs are distorting underlying profitability. SBC of $10-13M per quarter is modest relative to net income but adds to dilution. The undisclosed EPS in the latest quarter, despite an estimate of $0.37, raises questions about transparency and may indicate hidden charges.
Labor and Integration Costs Dominate
COGS consistently consumes over 85% of revenue, with SG&A around $250-300M per quarter, as reported in financial statements, highlighting a high variable cost structure.
The cost structure is heavily weighted toward labor and facility leases, leaving little room for margin expansion without automation. SG&A has grown from $249M in 2024Q1 to $295M in 2026Q2, reflecting increased overhead from acquisitions. Management's focus on automation is a strategic response, but the near-term cost pressures remain significant.
2025Q1 Loss Marks Turning Point
The -$96M net loss in 2025Q1, with a -1.9% operating margin, as per income statement data, represents a critical inflection point driven by integration and market challenges.
This quarter likely reflects the costs of integrating acquisitions and possibly a demand trough. The subsequent recovery to positive margins in 2025Q2 and Q3 suggests that the company absorbed the shock, but the volatility indicates fragility. The lasting impact is a more cautious approach to M&A and a renewed focus on cost discipline, though the path to consistent profitability remains uncertain.
Margin Compression Risks Persist
Despite revenue growth, operating margin has remained below 4% for most quarters, and net margin is often below 1%, based on reported figures, suggesting structural profitability challenges.
Short-sellers might argue that GXO's model is inherently low-margin and that automation investments may not yield the expected returns due to high capital costs and labor inflation. The thin net margin of 0.24% in 2026Q2 and the negative EPS growth in several quarters indicate that the company is not generating sufficient returns for shareholders. If wage pressures persist and integration synergies fail to materialize, margins could remain compressed, justifying a lower valuation.