10-QPeriod: Q2 FY2026

EXPEDITORS INTERNATIONAL OF WASHINGTON INC Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 5, 2026For Securities:EXPD

Summary

Expeditors International of Washington Inc. (EXPD) reported a strong second quarter for 2026, demonstrating significant revenue growth and improved profitability. Total revenues surged by 32% year-over-year, primarily driven by a substantial 57% increase in airfreight services and a healthy 27% rise in customs brokerage and other services. This robust performance was largely fueled by continued strong demand from technology sector clients, particularly those investing in AI infrastructure. Ocean freight services also saw a modest 5% revenue increase, indicating a recovery in that segment. The company also announced a restructuring of its Global Technology group, incurring $25 million in related expenses. Despite this, operating income grew by 41% and net earnings attributable to shareholders increased by an impressive 45%, leading to a 51% rise in diluted earnings per share to $2.03. Financially, the company maintained stable operating cash flow while returning significant capital to shareholders through $461 million in repurchases and dividends. The balance sheet shows total assets growing to $5.13 billion, with a healthy working capital position. Management reiterates its belief that current cash and operating flows are sufficient to meet liquidity and capital requirements. Despite ongoing global economic uncertainties, geopolitical tensions, and evolving trade policies, Expeditors appears well-positioned to navigate these challenges, benefiting from its diversified services and strong customer relationships, particularly within the technology sector.

Key Highlights

  • 1Total revenues increased by 32% to $3.50 billion in Q2 2026 compared to Q2 2025.
  • 2Airfreight services revenue saw a significant jump of 57% year-over-year, driven by increased demand and higher rates.
  • 3Net earnings attributable to shareholders grew by 45% to $266.2 million in Q2 2026.
  • 4Diluted earnings per share increased by 51% to $2.03 for the quarter.
  • 5The company returned $461 million to shareholders through common stock repurchases and dividends in the second quarter.
  • 6A restructuring of the Global Technology group was announced, resulting in $25 million in related expenses during the quarter.

Frequently Asked Questions

The substantial increase in airfreight services revenue was driven by a combination of factors including a 14% increase in tonnage, and significant rises in average sell and buy rates (44% and 45% respectively). This surge is attributed to strong market demand, particularly from the technology sector investing in AI infrastructure, and constrained capacity due to geopolitical events and jet fuel price increases.

Expeditors operates in a highly uncertain global economic and trade environment, including geopolitical tensions like the conflict in the Middle East. While these factors introduce risks, the company has mitigated some of the impact by adjusting shipment routings and notes that the financial impact on specific regions has not been material to date. Management believes current cash and operating flows are sufficient to meet future obligations.

Expeditors announced a restructuring of its Global Technology group aimed at modernization. This resulted in approximately $27 million in expected charges, with $25 million recognized in the second quarter of 2026 within salaries and related expenses. The remaining costs are expected to be recognized in the latter half of 2026.

Expeditors actively returns capital to shareholders through its share repurchase program and dividend payments. In the second quarter of 2026, the company spent $461 million on common stock repurchases and dividends. A new, significant share repurchase program of up to $3.0 billion was authorized and became effective on July 1, 2026.