Revenue growth has moderated significantly from 27.8% in 2024Q3 to 10.8% in 2026Q1, while gross margins remain volatile, contracting to 11.4% in the most recent quarter.
| Sales/Revenue | 13.5B | 13.18B | 11.71B | 9.78B | 8.99B | 7.94B | 6.2B | 6.09B |
| Revenue Growth % | 10.38% | 12.55% | 19.75% | 8.73% | 13.26% | 28.17% | 1.66% | - |
| Cost of Goods Sold | 8.86B | 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 | 1.71B | 1.53B | 1.44B | 1.38B | 1.22B | 968M | 703M | 680M |
| Gross Margin % | 12.7% | 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 | 3.8B | 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 | 557.58M | 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 | 423M | 425M | 218M | 318M | 242M | 151M | 16M | 150M |
| Operating Margin % | 3.13% | 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 | 886M | 882M | 633M | 679M | 571M | 486M | 339M | 452M |
| EBITDA Margin % | 6.56% | 6.69% | 5.41% | 6.94% | 6.35% | 6.12% | 5.47% | 7.42% |
| EBITDA Growth % | 39.97% | 39.34% | -6.77% | 18.91% | 17.49% | 43.36% | -25% | - |
| D&A (Non-Cash Add-back) | 463M | 457M | 415M | 361M | 329M | 335M | 323M | 302M |
| EBIT | 386M | 237M | 249M | 319M | 293M | 174M | 18M | 151M |
| Net Interest Income | -101M | -133M | -103M | -53M | -29M | -21M | -24M | -33M |
| Interest Income | 9M | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 109.97M | 133M | 103M | 53M | 29M | 21M | 24M | 33M |
| Other Income/Expense | -209M | -321M | -72M | -52M | 22M | 2M | -22M | -32M |
| Pretax Income | 214M | 104M | 146M | 266M | 264M | 153M | -6M | 118M |
| Pretax Margin % | 1.59% | 0.79% | 1.25% | 2.72% | 2.94% | 1.93% | -0.1% | 1.94% |
| Income Tax | 78M | 68M | 8M | 33M | 64M | -8M | 16M | 37M |
| Effective Tax Rate % | 36.45% | 65.38% | 5.48% | 12.41% | 24.24% | -5.23% | -266.67% | 31.36% |
| Net Income | 128.03M | 32M | 134M | 229M | 197M | 153M | -31M | 60M |
| Net Margin % | 0.95% | 0.24% | 1.14% | 2.34% | 2.19% | 1.93% | -0.5% | 0.98% |
| Net Income Growth % | 70.71% | -76.12% | -41.48% | 16.24% | 28.76% | 593.55% | -151.67% | - |
| Net Income (Continuing) | 136M | 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) | 1.11 | 0.28 | 1.12 | 1.92 | 1.67 | 1.32 | -0.27 | 0.52 |
| EPS Growth % | 84.6% | -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 | 115.84M | 116.3M | 119.8M | 119.49M | 117.62M | 115.6M | 114.6M | 114.6M |
| Basic Shares Outstanding | 114.71M | 115.68M | 119.41M | 118.91M | 117.05M | 114.63M | 114.6M | 114.6M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - |
Margin compression from labor
According to the provided quarterly income statements, GXO's year-over-year revenue growth has decelerated from a peak of 27.8% in 2024Q3 to 10.8% by 2026Q1, suggesting that the initial post-spin-off expansion phase is moderating as the company faces a more challenging macroeconomic environment for logistics services.
The transition from double-digit growth to lower levels indicates that the company's reliance on new contract wins may be facing headwinds from longer sales cycles. Investors should monitor whether this deceleration reflects a saturation in e-commerce demand or if the company is intentionally prioritizing contract quality over top-line volume.
As reported in financial statements, GXO's gross margin has fluctuated significantly, reaching a high of 15.8% in 2025Q3 before contracting to 11.4% in 2026Q1, which highlights the difficulty in maintaining pricing power within a labor-intensive, contract-based logistics model that is highly sensitive to operational costs.
The inability to sustain higher gross margins suggests that the company may be struggling to pass through inflationary labor and facility costs to its clients. This volatility warrants further investigation into the mix of open-book versus closed-book contracts, as the latter should theoretically provide better protection against cost spikes.
Based on GXO's reported figures, operating margins have remained thin, oscillating between -1.9% and 3.9% over the last ten quarters, which implies that the company has yet to achieve the necessary scale to decouple its overhead expenses from its gross profit generation in a meaningful way.
The persistent drag from SG&A expenses suggests that the company's aggressive M&A strategy and facility integration costs are consuming the majority of its operating gains. Without a clear path to scaling operating income faster than revenue, the current cost structure may continue to limit bottom-line profitability.
Data from recent income statements reveals that GXO's net income has been highly inconsistent, swinging from a $96 million loss in 2025Q1 to a $100 million profit in 2024Q4, indicating that non-operating items and integration-related charges are significantly distorting the underlying earnings power of the core business.
The wide variance in quarterly EPS suggests that investors should look past headline net income to understand the recurring cash-generating capabilities of the firm. The impact of stock-based compensation and acquisition-related expenses appears to be a recurring theme that complicates the assessment of true operational performance.
Analysis of the income statement suggests that GXO's heavy reliance on physical infrastructure and automation may be mispriced by the market, as the company's thin net margin of 0.24% in 2026Q1 highlights the significant capital intensity required to maintain its competitive position in the logistics sector.
Short-sellers might focus on the potential for margin compression if the company's automation investments fail to yield the expected efficiency gains. The risk remains that GXO is being valued as a high-margin technology partner while its financial reality remains tethered to the lower-margin, asset-heavy logistics industry.
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.