Expeditors Posts $2.65 Per Share as Third-Quarter Revenue Rises 42%
Key Facts
Expeditors reported on November 3 that third-quarter 2026 revenue rose 42% to $4,107.649 million, while net earnings attributable to shareholders and operating income each increased 55%. Net earnings were $344.512 million, compared with $222.256 million in the same quarter of 2025, and operating income rose to $445.414 million from $288.042 million. Chief Executive Daniel W. Wall said, "The strength in demand for our products and services is really what drove our third-quarter performance." Diluted earnings per share were $2.65, above analysts’ estimate of $2.20, according to Investing.com. Revenue also exceeded the consensus estimate of $3.58 billion, the site said.
The company attributed some of its activity to demand from hyperscalers, saying demand from some of those companies "exceeds the market overall." It added that high-value technology customers and artificial intelligence companies supported growth across multiple geographies and business segments. Performance extended to air and ocean freight services, with air freight revenue of $1,544.691 million, compared with $1,020.258 million in the third quarter of 2025. Ocean freight and ocean services revenue also rose to $1,102.833 million from $746.120 million. The company said ground transportation, warehousing and distribution also contributed to strong performance.
Global air freight tonnage reached a record level in the third quarter, rising about 13% year over year, the company said. Expeditors attributed some of the volume growth to demand from hyperscalers and their suppliers supporting AI infrastructure. It noted that continued growth in South Asia, particularly the region’s exports, supported global activity. Capacity, however, remained constrained by the slow expansion of fleets and delays in new aircraft deliveries. The company said strong demand from this customer group exceeded the market overall. The figures show activity expanding as capacity constraints limit the air freight sector’s ability to meet demand.
In ocean freight, volumes rose 7% year over year in the third quarter, against a strong September comparison and amid growth in Asian export markets. Expeditors said significant congestion at major Asian ports and transshipment hubs affected the market. It added that port operations were halted by three consecutive tropical cyclones. The company expected congestion and supply chain challenges to continue through the end of 2026. These disruptions coincided with higher ocean freight and ocean services revenue compared with the same period a year earlier. This puts activity growth up against operational bottlenecks that the company expects to persist through the rest of the year.
For the nine months ended September 30, the company reported revenue of $10,392.946 million, up 27% year over year. Diluted earnings per share for the period were $6.38, compared with $4.46, a 43% increase. In the third quarter alone, the company returned $197 million to shareholders through share repurchases. Cash dividends and share repurchases totaled $946 million in the first nine months of 2026. These figures highlight performance since the start of the year alongside the company’s third-quarter results.
The company said a significant portion of the strength in its customs brokerage activity was tied to additional tariff-related fees and post-entry activity that began in the third quarter of 2025. It attributed the latest quarter’s growth, however, to new business, more entries and expanded services across regions. In its statement, it warned that supply chain congestion, geopolitical tensions, changing trade policies, new capacity and price volatility could affect future financial performance. Investors may submit questions through the end of the business day on November 6, and the company will consider selected questions in an 8-K filing. It also plans to hold an investor and analyst day in New York on the morning of November 18, 2026.