Expeditors (EXPD) Q1 2026 earnings summary

Executive summary

• Revenues rose 4% year-over-year to $2.78 billion, driven by strong airfreight and customs brokerage, offset by a 23% decline in ocean freight revenue due to lower rates and volumes following tariff-driven shipment acceleration in 2025.

• Operating income increased 11% to $294.8 million and net earnings attributable to shareholders grew 13% to $229.6 million compared to Q1 2025.

• Earnings per share rose 16% to $1.71.

• $288 million was returned to shareholders via stock repurchases in Q1 2026.

• Airfreight tonnage grew 5% while ocean container volume declined 4%; airfreight margins improved sequentially.

Financial highlights

• Q1 2026 revenues: $2,782.96 million, up from $2.67 billion in Q1 2025.

• Net earnings attributable to shareholders: $229.61 million, up from $203.8 million year-over-year.

• Operating income: $294.83 million, up from $265.9 million year-over-year.

• Cash from operating activities: $309 million, down from $343 million in Q1 2025.

• Cash and cash equivalents at quarter end: $1.32 billion.

Outlook and guidance

• Management expects continued pricing volatility due to excess capacity in ocean freight, ongoing geopolitical tensions, and evolving trade regulations.

• Freight environment expected to remain unpredictable due to global events and macroeconomic concerns.

• Uncertainty remains regarding the impact of recent U.S. Supreme Court tariff rulings and potential sectoral tariffs.

• Management believes current cash and liquidity are sufficient for at least the next 12 months.

• Strong pipeline of new business and robust demand for customs brokerage services anticipated.