Expeditors' Third-Quarter Profit Growth Reaccelerates

The Tip Desk · November 3, 2026 · 3 min read

Diluted earnings reached $2.65 a share as revenue rose 42% to $4.1 billion and operating income increased 55% to $445 million.

Expeditors International of Washington (EXPD) reported diluted earnings of $2.65 a share for the third quarter of 2026, a 62% increase from a year earlier, after a 51% rise to $2.03 in the second quarter and a 16% increase to $1.71 in the first.

The global logistics company said revenue increased 42% to $4.1 billion, accelerating from 32% growth in the second quarter and 4% in the first. Operating income rose 55% to $445 million, after a 41% increase in the second quarter and an 11% increase in the first. Net earnings attributable to shareholders were $345 million.

Chief Executive Officer Daniel R. Wall said the company continued to gain share, particularly in markets it has made a strategic focus, and that strength of demand for its products and services drove third-quarter performance. He said demand from certain customers, such as the hyperscalers, has been outpacing the market overall, while the company has been deliberate in expanding its customer base and diversifying revenues.

Airfreight tonnage increased 13% year-over-year, after a 14% increase in the second quarter and 5% in the first. The company said record global air tonnage was driven primarily by continued growth in South Asia, where export tonnage increased most notably. Hyperscaler demand, including shipments from Tier 1 and Tier 2 suppliers supporting AI infrastructure, was a significant driver of volume growth. Air capacity remained constrained by limited fleet expansion and ongoing new aircraft delivery delays, and was also affected by aircraft redeployments that hit Asia-Europe e-commerce after European Union rules meant to curb de minimis imports. China-U.S. e-commerce tonnage had nearly recovered to levels before the United States terminated de minimis shipments in May 2025. Airfreight rates remained elevated, the company said, with demand outpacing available capacity.

Airfreight services revenue was $1.54 billion, up from $1.02 billion a year earlier.

Ocean container volume increased 7% year-over-year after remaining flat in the second quarter and declining 4% in the first. The company said ocean volumes picked up after the flattening seen in the second quarter, with particularly strong comparative growth in September and across Asia export markets. Significant congestion at major Asian ports and transshipment hubs, including capacity idled and port operations halted by three back-to-back typhoons, affected the ocean markets. Ocean freight and ocean services revenue was $1.10 billion, up from $746 million a year earlier. Expeditors said it expects congestion and supply chain challenges to persist through the remainder of 2026.

Customs brokerage and other services revenue was $1.46 billion, up from $1.13 billion a year earlier. Customs, Transcon, Distribution, and Order Management each achieved double-digit revenue growth for a third consecutive quarter. The company said much of the strength in customs brokerage had come from tariff-related additional-line fees and post-entry activity that began in the third quarter of 2025, but that growth in the most recent quarter was driven by significant new business wins, higher declaration volumes, and broad-based customs services across all regions. Demand from AI hyperscalers and other high-value technology customers continued to drive growth, particularly in Transcon road freight and warehousing and distribution.

Senior Vice President and Chief Financial Officer David A. Hackett said revenue grew 42% while headcount increased only 1% from the prior year, demonstrating the scalability of the operating model and driving significant operating leverage. Operating efficiency increased to 36.7%, which the company said was well above its historical target of 30%. He said the 55% increase in operating income, combined with a lower tax rate and a lower share count, drove the 62% increase in diluted EPS. Full-time equivalents were 20,463 as of September 30, 2026, versus 20,170 a year earlier.

The company returned $197 million to shareholders through share repurchases in the third quarter and $946 million in dividends and share repurchases for the first nine months of 2026. Expeditors plans to hold an Investor Day on November 18, 2026, in New York City.