Key Takeaways:
GXO Logistics, Inc. (NYSE: GXO) shares plunged over 17 percent on Monday despite the company reporting first-quarter revenue of $3.3 billion and raising its full-year profit forecast.
“2026 is off to a strong start. In the first quarter, we delivered strong revenue growth and profitability, underscoring the strength and predictability of our business model,” Patrick Kelleher, chief executive officer of GXO, said in a statement.
The world’s largest pure-play contract logistics provider reported revenue grew 10.8 percent from the prior year, with organic revenue up 4.1 percent. The company posted adjusted earnings of $0.50 per share, a significant increase from $0.29 in the same quarter last year. GXO also won $227 million in new business and noted a record sales pipeline of $2.7 billion.
The strong results were overshadowed by competitive fears that hit the entire logistics sector. GXO’s decline was part of a broader market reaction to Amazon’s launch of Amazon Supply Chain Services, which expands its freight and distribution solutions. The news sent shares of United Parcel Service (UPS) down 10 percent and FedEx (FDX) down over 9 percent, as investors weighed the impact of increased competition from the e-commerce giant.
Following the strong quarter, GXO raised its full-year 2026 guidance.
The company now expects full-year adjusted EBITDA between $935 million and $975 million, up from a previous range of $930 million to $970 million. It also lifted its adjusted diluted EPS forecast to a range of $2.90 to $3.20.
The selloff places GXO shares at their lowest level in over a month, pushing back against the company’s positive operational momentum. Investors will watch for further details on the company's long-term strategy at its Investor Day, scheduled to be held after its third-quarter earnings report later this year.
This article is for informational purposes only and does not constitute investment advice.
