Title

Earning Preview: QXO Inc this quarter’s revenue is expected to increase by 156.47%, and institutional views are broadly bullish

Abstract

QXO Inc will report quarterly results on February 26, 2026, Post Market, with consensus pointing to revenue of $2.20 billion (+156.47% year over year), EPS of $0.03 (+230.90% year over year), and EBIT of $57.47 million (+202.62% year over year), alongside updates on financing and the pending Kodiak Building Partners acquisition.

Market Forecast

Based on the latest projections, the market expects QXO Inc to deliver revenue of $2.20 billion this quarter, implying 156.47% year-over-year growth, with EPS estimated at $0.03, up 230.90% year over year, and EBIT forecast at $57.47 million, rising 202.62% year over year. Forecasts did not specify gross profit margin or net profit margin, so investor focus will likely center on whether profitability metrics trend above or below the company’s recent baseline. Within QXO Inc’s commercial mix, roofing product lines remain the core revenue engine and execution focal point, with last quarter’s contributions led by residential roofing products and supported by non-residential roofing products. The most promising area for incremental expansion is complementary building products, which generated $628.50 million last quarter; while segment-level year-over-year growth was not disclosed, the pipeline of initiatives and pending integration opportunities offers scope for acceleration once new platforms are consolidated.

Last Quarter Review

QXO Inc reported revenue of $2.73 billion last quarter (up 206.40% year over year), a gross profit margin of 25.19%, a GAAP net loss attributable to shareholders of $139.00 million with a net profit margin of -5.11%, and adjusted EPS of $0.14, up 180.00% year over year. A key highlight was the sharp revenue expansion combined with improved adjusted EPS year over year, while net income decreased sequentially as the quarter-on-quarter change in net profit was -138.29%. In terms of business mix, residential roofing products contributed $1.35 billion (49.54% of revenue), non-residential roofing products contributed $734.00 million (26.90%), complementary building products contributed $628.50 million (23.04%), and software products and services contributed $14.10 million (0.52%), underpinning a diversified revenue base with roofing-centric scale.

Current Quarter Outlook

Core Roofing Products

Roofing-driven categories continue to define QXO Inc’s top line this quarter, setting expectations around operational execution and pricing discipline. The consensus revenue estimate of $2.20 billion implies a sequential step-down from last quarter’s $2.73 billion, which places a premium on maintaining a healthy gross-profit baseline relative to 25.19% in the prior quarter. Pricing, product mix, and procurement efficiency will likely determine the extent to which gross margin remains resilient against volume normalization in early 2026. Management’s ability to manage selling, general, and administrative costs will be crucial for operating leverage and to narrow the gap between gross margin and net margin following a -5.11% net margin last quarter. Investors will look for signals that operating expense growth is aligning to the current revenue cadence so that incremental profitability improves even if volumes moderate relative to the peak exit rate of last quarter.

The mix between residential and non-residential roofing products matters for quarterly profitability given their distinct product profiles and customer dynamics. Last quarter, residential roofing products contributed $1.35 billion and non-residential roofing products contributed $734.00 million, together accounting for 76.44% of revenue. If the company sustains a balanced mix and steady procurement benefits, the reported gross margin could track near the recent 25.19% benchmark even as overall revenue normalizes quarter over quarter. The degree of pricing discipline and the normalization of freight and logistics costs will be key to whether adjusted EPS tracks ahead of or below the $0.03 estimate despite the headline year-over-year growth implied by consensus.

Complementary Building Products and Software

Complementary building products, which contributed $628.50 million last quarter, represent a scalable adjacency within QXO Inc’s portfolio, and they are positioned to benefit from cross-selling and product line breadth. While segment-level year-over-year growth was not specified, the category’s breadth provides opportunities to benefit from network effects across branches and customer accounts, especially if execution around assortment depth and availability remains tight. In parallel, software products and services contributed $14.10 million last quarter and serve as a foundation for incremental value capture via digitization, workflow simplification, and customer stickiness over time. Although small in absolute revenue terms, software may enable improved attachment rates, higher average order values, and lower servicing costs across the company’s broader customer base.

Two recently disclosed developments support the growth runway for these businesses. On January 6, 2026, QXO Inc announced a $1.20 billion investment commitment via a new series of convertible perpetual preferred stock, and on January 16, 2026, the company announced plans for a $750.00 million stock offering alongside an overallotment option. Together, these actions strengthen the balance sheet and liquidity to pursue scale initiatives and integration. On February 11, 2026, QXO Inc announced a definitive agreement to acquire Kodiak Building Partners for $2.25 billion, an addition that, upon closing, would expand the company’s branch footprint and category depth, particularly in complementary lines. Investors will be attentive to management’s timeline and early integration framework for Kodiak as leading indicators for synergy capture and revenue retention once the transaction closes.

Key Stock Drivers This Quarter

Three elements are likely to drive the stock around the print and near-term updates: revenue and EPS delivery versus consensus, margin trajectory versus the prior quarter’s baselines, and clarity around capital deployment. First, versus the consensus revenue of $2.20 billion and EPS of $0.03, even modest deviations can translate into outsized share-price sensitivity, given that the company’s prior quarter showed a negative net margin yet strong year-over-year growth. The EBIT estimate of $57.47 million also provides an important midline profitability marker; early evidence of operating leverage would carry weight if gross margin is stable relative to 25.19% and if fixed cost absorption improves.

Second, investors will scrutinize progress on net margin repair relative to last quarter’s -5.11%. In practice, that means evaluating the shape of the income statement below gross profit: logistics, selling costs, corporate overhead, and integration-related expenses. A narrower gap between gross margin and net margin would signal that the company is managing costs within the current revenue environment and positioning for a more favorable earnings algorithm later in the year.

Third, capital structure and deployment will be front and center. The $1.20 billion preferred financing commitment announced on January 6, 2026, and the proposed $750.00 million equity offering announced on January 16, 2026, enable QXO Inc to finance growth while maintaining strategic flexibility. The pending $2.25 billion acquisition of Kodiak Building Partners, announced on February 11, 2026, introduces a visible roadmap for footprint expansion and expanded category participation once closed, and the cadence of integration updates may serve as a key investor anchor. The sequencing between financing, closing milestones, and the phase-in of any early synergy capture could influence revisions to forward consensus for revenue and EPS, particularly for the second half of the fiscal year. Against this backdrop, investors may also look for any qualitative commentary on inventory positioning and order trends that could color the near-term revenue trajectory following last quarter’s $2.73 billion result.

Analyst Opinions

The preponderance of views we collected between January 1, 2026, and February 19, 2026, are bullish. In our sample, bullish opinions represent 100% of explicit analyst calls versus 0% bearish during the period, led by an Outperform stance and price target support from a major sell-side institution. On January 9, 2026, RBC maintained an Outperform rating and set a price target of $30, and the stock carried an average Buy rating with a mean price target of $32 from a collection of covering analysts during the period. This alignment indicates that the majority view anticipates continued execution on revenue scaling, with improving profitability as integration progresses and cost control gains traction.

The bullish argument centers on three pillars. First, the near-term consensus implies substantial year-over-year growth, with revenue estimated at $2.20 billion (+156.47% YoY), EPS at $0.03 (+230.90% YoY), and EBIT at $57.47 million (+202.62% YoY). Even though sequential revenue is expected to normalize from the prior quarter’s $2.73 billion, the YoY growth rates reflect a scaling platform with significant operating potential as cost lines are managed to the revenue base. Second, investors and analysts expect that the company’s capital actions and M&A pipeline can support structural growth. The $1.20 billion preferred commitment disclosed on January 6, 2026, and the $750.00 million planned equity raise announced on January 16, 2026, reinforce balance sheet capacity to execute on growth initiatives. The pending $2.25 billion acquisition of Kodiak Building Partners, announced on February 11, 2026, underscores a strategy of expanding footprint and category breadth; while the deal has yet to close, it provides a tangible path to greater scale once integrated. Third, consensus expects that as the company consolidates platforms and leverages procurement, logistics, and shared services, gross margin could be sustained near the recent baseline while operating expenses are aligned to the revenue run-rate, allowing for incremental operating leverage.

RBC’s maintained Outperform rating and refreshed $30 target provide a clear example of the majority stance, with the firm signaling confidence in continued execution despite the transition costs associated with scaling. While RBC’s target sits below the $32 mean price target reported by aggregated analyst data in early January, the consistency of Buy and Outperform labels suggests an expectation for earnings expansion as revenue compounds and as the cost structure is right-sized. Taken together, the majority analyst view frames the upcoming report as a checkpoint on three metrics: revenue delivery versus the $2.20 billion estimate, EPS versus the $0.03 estimate, and clarity on the timeline and integration framework around the Kodiak transaction.

Market participants will also monitor institutional participation as a secondary signal of confidence during this period of scaling. On February 12, 2026, a large institutional holder disclosed an ownership stake in QXO Inc through a regulatory filing, indicating continued engagement from prominent asset managers. While not a rating, such positioning can reinforce the notion that the company’s growth and financing roadmap is attracting attention from sophisticated investors, complementing the majority sell-side narrative.

In summary, the dominant analyst stance is bullish, anchored by robust year-over-year growth expectations, balance sheet capacity to fund strategic initiatives, and a visible M&A path in 2026. The upcoming release on February 26, 2026, Post Market, will likely be judged on revenue and EPS delivery relative to consensus, the trajectory of margins against last quarter’s 25.19% gross margin and -5.11% net margin baselines, and the specificity of management’s commentary on financing execution and the Kodiak integration roadmap.