The AI Overhaul Inside GXO’s Warehouses
After record revenue in 2025, the company is pushing AI deeper into daily warehouse operations
GXO Logistics closed 2025 with record quarterly and annual revenue and all-time high adjusted EBITDA, according to its full-year earnings release. The company booked more than $1 billion in new business wins for a third straight year and reported 3.9% organic revenue growth for 2025. It guided 4-5% organic growth for 2026.
Chief executive Patrick Kelleher set a higher target. “Return to mid-teens,” he said in an interview with Investing.com. GXO has already secured $774 million in incremental new business revenue for 2026, up 20% from the same point last year, according to that interview.
North America is central to that plan. “The U.S. is our largest and most immediate growth lever,” Kelleher said on the company’s earnings call, as reported by Investing.com. He acknowledged that the company has underperformed in the region in recent years.
Artificial intelligence is a key part of the reset. GXO is building what it describes as an AI-powered warehouse operating system and increasing investment in robotics. The company is tying its growth plan to whether those systems can lift productivity in its largest market.
AI on the Warehouse Floor
GXO’s internal platform, GXO IQ, is described as an AI-powered warehouse operating system designed to improve labor planning, manage workflows, and position inventory more efficiently. The system has been deployed at several large sites and is being expanded across the network.
Kelleher said AI is “front and center” to the company’s operations. GXO is building its own AI team while also integrating third-party robotics and software providers.
In 2026, GXO plans to increase investment in what Kelleher called “Physical AI,” including humanoids and robotics. He described it as “a game changer for our industry” in the same interview.
Other large logistics providers are also investing in artificial intelligence. DHL Group has outlined AI-enabled robotics, advanced analytics, and automation in its corporate materials and Logistics Trend Radar. XPO, Inc. has detailed machine learning and digital freight optimization tools in company disclosures. CEVA Logistics has announced AI-based dispatching and optimization systems, including finished vehicle logistics planning tools. Ryder System has described predictive analytics and AI applications in forecasting and fulfillment efficiency.
Robotics, routing tools, and forecasting software are now common across major logistics companies. GXO’s GXO IQ sits within that broader shift toward software-driven warehouse management. The question is whether GXO’s systems raise output per worker and reduce operating costs in a way that shows up in financial results.
GXO says AI is intended to improve labor use and workflow speed. North America is the company’s largest market and a stated focus for performance improvement.
The Outsourcing Question
Kelleher tied artificial intelligence to market structure. “Only about 30%” of contract logistics is outsourced, he told Investing.com.
If warehouse systems become cheaper and more reliable with AI, outsourcing may become more attractive to manufacturers and retailers that currently manage logistics internally. Lower operating costs and more predictable performance can shift that decision.
GXO is also expanding into aerospace and defense. On February 9, 2026, the company announced the formation of a Defense Advisory Board. It has recently secured aerospace and defense contracts with Boeing and BAE Systems, according to company disclosures.
The company is pairing its technology investment with acquisitions. GXO completed its £762 million acquisition of Wincanton in March 2024. Further acquisitions are planned. “We will do M&A,” Kelleher said in the February 11 Investing.com interview. He said the company intends to focus on North America in 2026.