Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported August 4, 2026 · Beat 7 of last 7 quarters
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GXO's strong commercial momentum in data center and aerospace/defense verticals directly supports the AI infrastructure buildout thesis, as the company is winning contracts to support hyperscale data centers and complex supply chains. The expansion into new geographies like Malaysia and the scaling of GXO IQ and automation indicate growing demand for logistics services tied to AI infrastructure. Management's confidence in accelerating growth into 2027 suggests sustained investment in AI-related logistics capacity.
GXO delivered Q2 revenue of $3.4B, up 4% YoY with organic growth of 3.4%, and adjusted EBITDA of $219M (6.4% margin). New business wins totaled $410M, up over 30% YoY, with 40% from strategic growth verticals; first-half wins reached $638M, up ~20% YoY. The company generated $76M operating cash flow and $12M positive free cash flow, and repaid $400M of bonds post-quarter. Wincanton integration is ~90% complete with $60M run-rate synergies on track. Management tightened full-year guidance with midpoints unchanged.
Management tightened 2026 guidance with midpoints unchanged: organic revenue growth of 4% to 5%, adjusted EBITDA of $945M to $965M, adjusted EPS of $2.95 to $3.15, and free cash flow conversion of 30% to 40%. They expect margin improvement in the back half of 2026, with 'green shoots' in Q4 and acceleration into 2027, driven by new business ramp, the GXO Way operational standardization, procurement scale, and AI/automation. Commercial momentum is expected to continue into Q3 with wins up significantly YoY, particularly in data centers and aerospace/defense. They have over $1B of incremental revenue secured for 2026 and ~$353M already secured for 2027. Management reiterated a long-term margin target of above 6% EBIT margin and plans to share more details at Investor Day on November 16.
“We are winning more and we're winning better.”
on Commercial momentum
“In production, 0 will be humanoids this year. We have a number of humanoids deployed in pilot. We've done 45 pilots on humanoids so far. We have not achieved ROI on humanoids yet. I think we are a couple of years away from that.”
on Humanoid robots
“We really deserve to be above 6%, and we'll share more details on November 16 at the Investor Day in terms of our path to achieve that.”
on Margin expansion
What has changed in the go-to-market strategy that has enabled the commercial momentum?
Patrick highlighted focus on B2B verticals (data centers, aerospace/defense, industrial) and a customer success model with global account management, growing with existing customers and winning share from competitors.
Can you outline the key drivers of margin improvement in the back half and into 2027?
Mark cited Wincanton synergies, seasonality, technology investments, the GXO Way, procurement scale, and labor management tools. He expects margin expansion to start in Q4 and accelerate into 2027.
How many of the 20,000 robots will be humanoids, and what will that count look like by 2030?
Patrick said zero humanoids in production this year, with 45 pilots completed and more launching. He expects ROI on humanoids in about 2 years, after which they will feature in solutions.