01—Abstract
Summary
Summary of the 10-Q filed May 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Expeditors International of Washington Inc. (EXPD) reported a 4% increase in total revenues for the first quarter of 2026, reaching $2.78 billiona.
This growth was driven by a 17% surge in customs brokerage and other services and a 14% rise in airfreight services, signaling strong demand from technology clients. However, ocean freight and ocean services experienced a significant 23% decline, attributed to reduced average rates and lower shipment volumes following a pre-tariff surge in early 2025. Net earnings attributable to shareholders increased by 13% to $229.6 millionb, with diluted earnings per share (EPS) rising 16% to $1.71.
The company continued its strong commitment to shareholder returns, repurchasing $288 millionc of its common stock during the quarter. Despite a slight decrease in operating cash flow, the company maintains a healthy liquidity position and anticipates sufficient resources to meet its capital and liquidity needs.
02—Key points
Key Highlights
- Total revenues increased by 4% to $2.78 billion in Q1 2026.
- Customs brokerage and other services revenue grew by 17%, while airfreight services revenue increased by 14%.
- Ocean freight and ocean services revenue declined by 23% due to lower rates and volumes.
- Net earnings attributable to shareholders rose 13% to $229.6 million.
- Diluted earnings per share (EPS) increased by 16% to $1.71.
- The company repurchased $288 million of its common stock during the quarter.
- Operating cash flow decreased to $309 million from $343 million in the prior year quarter.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ1 FY2026filed May 6, 2026Financial Statements
Q1 FY2026 against Q1 FY2025
| Line item | Q1 FY2026Q1 FY2025 | Change |
|---|---|---|
| Revenue | $2.78B$2.67B | +4.4% |
| Operating Expenses | $2.49B$2.40B | +3.6% |
| Operating Income | $294.83M$265.86M | +10.9% |
| Net Income | $229.61M$203.79M | +12.7% |
| EPS (Basic) | $1.72$1.48 | +16.2% |
| EPS (Diluted) | $1.71$1.47 | +16.3% |
| Shares Outstanding (Basic) | 133.54M137.83M | −3.1% |
| Shares Outstanding (Diluted) | 134.08M138.44M | −3.1% |
05—Questions
Frequently Asked Questions
What is driving the growth in Expeditors' revenue?
Expeditors' revenue growth in the first quarter of 2026 is primarily driven by its customs brokerage and other services, which saw a 17% increase, and airfreight services, up 14%. This is attributed to strong demand from technology customers, particularly for AI infrastructure, and increased complexity in customs declarations due to a dynamic trade environment.
Why has ocean freight and ocean services revenue declined significantly?
The substantial 23% decrease in ocean freight and ocean services revenue is mainly due to a significant drop in average ocean sell and buy rates, coupled with a 4% decline in ocean containers shipped. This follows an acceleration of shipments by U.S. importers in anticipation of trade tariff changes in early 2025, leading to excess capacity and reduced rates in the current period.
How is the company returning value to shareholders?
Expeditors demonstrated a strong commitment to shareholder returns by repurchasing $288 million of its common stock during the first quarter of 2026. Additionally, the Board of Directors declared a semi-annual dividend of $0.81 per share, payable in June 2026, indicating continued focus on shareholder distributions.
What is the outlook for ocean freight given the current market conditions?
The outlook for ocean freight remains challenging due to continued excess capacity, which is pressuring sell and buy rates. Geopolitical tensions and potential new vessel additions are expected to maintain this pressure. While some volumes may shift and customers seek to mitigate tariff exposures, the overall impact on volumes is uncertain, and further rate decreases are possible.
06—Continue