QXO Inc. Faces Mixed Analyst Sentiment Amid Recent Earnings
QXO Inc. (NYSE:QXO), a provider of business application software and consulting services, reported earnings for the quarter ended February 25, 2026, that were largely in line with analyst expectations. The company posted non‑GAAP earnings per share (EPS) of $0.02 and revenue of $2.19 billion, matching the consensus estimate of $0.03 EPS and $2.19 billion in revenue.
Financial Highlights
- EPS: $0.02 (non‑GAAP) versus consensus $0.03
- Revenue: $2.19 billion, equal to consensus expectations
- Year‑over‑year revenue growth: 14,725 %
- Net margin: –4.08 %
- Return on equity: 3.59 %
- Current ratio: 3.06
- Quick ratio: 2.24
- Debt‑to‑equity ratio: 0.37
- Price‑to‑earnings ratio: –48.32 (negative earnings)
- PEG ratio: 3.23
- Beta: 2.55
The company’s market capitalization was reported as $16.10 billion at the time of the earnings release. Shares of QXO opened at $23.88 on Friday, February 24, 2026, with a 50‑day moving average of $23.61 and a 200‑day moving average of $20.94.
Analyst Ratings and Target Prices
Wall Street Zen downgraded QXO from a “hold” to a “sell” rating on February 28, 2026, citing concerns over the company’s valuation and earnings outlook. The downgrade followed a series of mixed recommendations from other analysts:
| Analyst | Rating | Target Price |
|---|---|---|
| Benchmark | Buy | — |
| Oppenheimer | Outperform | $30.00 |
| Weiss Ratings | Sell (d+) | — |
| William Blair | Outperform | — |
| Royal Bank of Canada | — | $30.00 |
According to MarketBeat.com, the consensus rating is a “Moderate Buy” with a consensus target price of $32.43. One analyst issued a “Strong Buy,” fourteen analysts issued a “Buy,” one a “Hold,” and one a “Sell.”
Institutional Activity
Institutional investors have been actively adjusting their positions in QXO:
- American Capital Advisory LLC increased holdings by 258 % in Q2, now owning 1,167 shares valued at $25,000.
- Allworth Financial LP raised its stake by 1,740.9 % in Q2, holding 1,215 shares worth $26,000.
- Bogart Wealth LLC and Arax Advisory Partners acquired new positions in Q3 and Q4 respectively, each valued around $25,000.
- Mitsubishi UFJ Asset Management Co. Ltd. added a new stake in Q2 worth approximately $28,000.
Overall, institutional investors and hedge funds own about 58.68 % of QXO’s shares.
Market Commentary
Financial commentator Jim Cramer commented on the stock in a March 1, 2026, interview, stating, “I don’t bet against Brad,” referencing the company’s founder. While Cramer’s remarks suggest a bullish stance, the broader analyst community remains divided, reflected in the recent downgrade by Wall Street Zen.
Outlook
Wall Street Zen projects QXO’s earnings for the current year at –$0.13 EPS. The company’s strong revenue growth contrasts with negative net margin and low earnings, leading analysts to question whether the valuation remains sustainable. Investors will likely monitor the company’s next earnings cycle and any strategic initiatives that could improve profitability.
