| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 64 | 41.3x | 17.8x | Around median | |
Growth | 74 | 7.6% | 7.1% | Top tier | |
Quality | 38 | 2.8% | 4.5% | Bottom tier | |
Safety | 35 | 6.8x | 2.6x | Bottom tier | |
Capital Return | 16 | — | 2.12% | Bottom tier | |
Momentum | 23 | -9.4% | 2.9% | Bottom tier | |
Sentiment | 82 | 11 | 3 | Top tier |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
GXO Logistics operates in contract logistics, managing warehousing, fulfillment, e-commerce, and complex supply chains for global brands. About 70% of its business comes from retail, e-commerce, omnichannel, and consumer packaged goods, while it is expanding its presence in four strategic growth sectors: aerospace and defense, technology and data centers, industrials, and life sciences. Management describes these businesses as more complex, more regulated, and longer-duration, supporting better economics than traditional warehousing.
In Q2 FY2026, revenue reached $3.4 billion, up 4% year over year, with organic growth of 3.4%. The company reported adjusted EBITDA of $219 million and an adjusted EBITDA margin of 6.4%, unchanged from the comparable period, and adjusted earnings per share of $0.59 versus expectations of $0.58. The provided data did not include a gross profit or net income figure for the quarter.
The growth mix reflects expansion beyond the core consumer business: strategic growth sectors accounted for about 40% of new business wins since the start of FY2026, while the remaining 60% came from core sectors. New contract wins totaled $410 million in the quarter and $638 million in the first half, while secured incremental revenue for FY2026 exceeded $1 billion and secured revenue for FY2027 reached about $353 million.
Automated analysis for informational purposes only — not investment advice.
The average analyst price target is $68, within a range of $61 to $78, with a consensus “Buy” rating. The average is slightly above the 52-week range high of $66.85, while the highest target exceeds that high by about 17%. No usable price-to-earnings ratio is available in the provided data, and analyst targets should be weighed against the decline in FY2025 net income to $32 million, the unchanged adjusted EBITDA margin of 6.4% in Q2 FY2026, and the dependence of any re-rating on the realization of the promised margin expansion.
Figures in the text are as of 2026-08-30; the live price is shown at the top of the page.
Revenue reached $3.4 billion, up 4% year over year, while organic growth was 3.4%. The company generated adjusted EBITDA of $219 million and an adjusted margin of 6.4%, and reported adjusted earnings per share of $0.59 versus expectations of $0.58. The most notable driver was $410 million of new business signings, up more than 30%, with contributions from all regions and contracts in data centers, aerospace and defense, and e-commerce.
As of August 5, 2026, GXO had secured more than $1 billion of incremental revenue for FY2026 and about $353 million for FY2027. The sales pipeline reached $2.7 billion at the end of July 2026 and returned to a record level after strong closings during the quarter. Management maintained its FY2026 organic growth outlook of 4% to 5% and linked its expectation of faster growth in FY2027 to converting contracts signed in the second half of FY2026 into revenue.
The GXO IQ platform uses proprietary applications for forecasting, inventory replenishment, picking optimization, and labor planning, with a target of deploying it at about 50 sites during FY2026. The company also plans to deploy 20,000 robots across its network during the same year. Humanoid robots had undergone 45 trials as of the August 5, 2026 call, but management said the number in production during FY2026 would be zero because a return on investment had not yet been achieved.
The adjusted EBITDA margin was 6.4% in Q2 FY2026, unchanged year over year, while the EBIT margin cited by management ranged between 3.5% and 4%. Management believes the business deserves an EBIT margin above 6%, but it did not provide a numerical timeline for achieving that goal during the August 5, 2026 call. The improvement plan is based on standardizing procurement, labor management, and operating dashboards through GXO Way, $60 million of Wincanton savings, and a greater mix of aerospace and defense, technology, and data center contracts.
Approximately 90% of the planned integration actions had been completed as of August 5, 2026, and GXO remained on track to achieve annualized run-rate cost savings of $60 million by the end of FY2026. Management said the two companies’ teams were operating as one unit and that Wincanton’s defense capabilities helped improve the sales pipeline and win new business in aerospace and defense. The integration’s success is important because it combines cost savings with revenue opportunities, but it remains part of a broader margin plan that includes GXO Way, technology, and global procurement.
GXO ended Q2 FY2026 with $769 million in cash, while net leverage declined to 2.6 times from 3 times a year earlier, and it subsequently repaid $400 million of notes that matured in July 2026 using available cash. The quarter generated operating cash flow of $76 million and free cash flow of $12 million, with a target for annual free cash flow conversion of 30% to 40%. Conversely, the current ratio was 0.79 according to an August 5, 2026 report, while Q1 FY2026 net income was only $4 million, so short-term liquidity and GAAP profitability remain two areas worth monitoring.
