Expeditors Q3 EPS Jumps 61.6% to $2.65 as Revenue Climbs 41.9% to $4.11 Billion
Expeditors International of Washington said third-quarter earnings per share jumped 61.6% to $2.65 as revenue climbed 41.9% to $4.11 billion, powered by record airfreight tonnage and strong demand from AI hyperscaler customers.
Net earnings attributable to shareholders rose 55.0% to $344.5 million from $222.3 million a year earlier, and operating income increased 54.6% to $445.4 million, according to the logistics company's earnings release filed with an 8-K on Tuesday. Diluted EPS compares with $1.64 in the third quarter of 2025.
"The strength of demand for our products and services is what really drove Q3 performance," President and CEO Daniel R. Wall said in the release, adding that demand from customers such as the hyperscalers "has been outpacing the market overall."
Air and ocean volumes surge
Airfreight tonnage rose 13% from a year earlier and ocean container volume increased 7%, the company said. Growth accelerated through the quarter: September airfreight kilos were up 19% and ocean volume was up 12%.
Revenue from airfreight services rose 51.4% to $1.54 billion. Ocean freight and ocean services revenue grew 47.8% to $1.10 billion, and customs brokerage and other services revenue increased 29.4% to $1.46 billion.
Expeditors said hyperscaler demand, including shipments from suppliers supporting AI infrastructure, was a significant driver of air volume growth, while air capacity stayed constrained. On the ocean side, the company said three back-to-back typhoons caused significant congestion at major Asian ports and transshipment hubs, and it expects congestion and supply chain challenges to persist through the rest of 2026.
Among regions, South Asia revenue rose 70.4% to $691.8 million, and U.S. revenue grew 44.2% to $1.34 billion.
Operating leverage
Chief Financial Officer David A. Hackett said operating efficiency improved to 36.7%, "well above our historical target of 30%." Full-time equivalent employees totaled 20,463 at Sept. 30, up 1.5% from 20,170 a year earlier.
The effective tax rate fell to 23.1% from 25.2%, and diluted weighted average shares declined 3.8% to 130.1 million, which also helped EPS outpace profit growth.
"We had another exceptional quarter and our pipeline of new business remains strong," Hackett said.
Buybacks continue
Expeditors repurchased 1.1 million shares in the quarter at an average price of $178.36, returning $197 million to shareholders. Through the first nine months of 2026, it bought back 5.4 million shares at an average of $154.87 and returned $946 million through dividends and repurchases.
For the nine months, revenue rose 26.5% to $10.39 billion and diluted EPS increased 43.0% to $6.38. The release did not include a financial outlook. The company plans to hold an Investor Day in New York City on Nov. 18.
By the numbers
- Diluted EPS: $2.65, up 61.6%
- Revenue: $4.11 billion, up 41.9%
- Net earnings: $344.5 million, up 55.0%
- Operating income: $445.4 million, up 54.6%
- Airfreight tonnage: up 13%; ocean container volume: up 7%
- Q3 buybacks: 1.1 million shares, $197 million
Sources
- Expeditors International of Washington Form 8-K with third-quarter 2026 earnings release, filed Nov. 3, 2026 (accession 0001193125-26-444872)
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