GXO Logistics Inc. (GXO) just reported another standout quarter, hitting its stride in the early innings of the logistics upcycle. The mega-trends across its verticals, combined with the added complexity of tariffs and reshoring, put GXO at the center of a massive, needle-moving opportunity, notes Thomas Hayes, editor of HedgeFundTips.
Revenues of $3.4 billion jumped 8% year-over-year, marking an all-time record for Q3. Organic growth of 4% marks the continued recovery from the destock trough reached in Q4 2023 and has remained in a clear uptrend ever since. New business wins of $280 million (+24% YOY) brought year-to-date wins above $800 million, putting GXO on pace for its third straight year topping $1 billion in new contracts.
Even more encouraging, the top-line recovery still looks to be in the early innings. The year 2026 is already shaping up as another strong one, with $690 million of incremental revenue booked through Q3 (up nearly 50% from the same point last year). That effectively locks in 5%-plus gross organic growth before factoring in any additional wins, renewals, or volume acceleration.
With the US accounting for just $3.1 billion (about 26%) of revenues in 2024 and a total addressable market north of $250 billion, the runway for expansion is wide open, especially in higher-margin verticals like industrial, life sciences, aerospace and defense, and technology. In fact, the sales pipeline in those segments climbed 30% sequentially, with technology tripling.
Recommended Action: Buy GXO.
