Expeditors (EXPD) Q2 2026 earnings summary

Executive summary

• Revenues rose 32% year-over-year to $3.5 billion, driven by strong demand in airfreight and customs brokerage, especially from technology sector clients investing in AI infrastructure and double-digit growth in transcon, distribution, and order management.

• Airfreight services revenue increased 57%, with tonnage up 14% year-over-year and 16% sequentially, while customs brokerage and other services rose 27%.

• Operating income increased 41% to $350 million and net earnings attributable to shareholders rose 45% to $266 million compared to Q2 2025.

• A $25 million restructuring charge was recognized for a Global Technology group workforce reduction, expected to yield $50 million in annual cost savings.

• $461 million was returned to shareholders via stock repurchases and dividends in Q2 2026.

Financial highlights

• Q2 2026 revenues: $3.50 billion, up from $2.65 billion in Q2 2025.

• Net earnings attributable to shareholders: $266 million, up from $184 million year-over-year.

• Diluted EPS: $2.03, up 51% from $1.34 in Q2 2025.

• Cash from operating activities: $179 million for Q2 2026, unchanged from Q2 2025.

• Share repurchases: 2.3 million shares at an average price of $151.50 per share in Q2 2026.

Outlook and guidance

• Management expects continued volatility in global trade due to tariffs, geopolitical tensions, and capacity shifts, but also strong demand in airfreight, especially from AI hyperscalers and high-value tech customers.

• Anticipated capital expenditures for 2026 are approximately $60 million, focused on technology and facility improvements.

• Restructuring of the Global Technology team is expected to reduce annual costs by $50 million, about 10% of corporate overhead.

• Ongoing investments in AI and technology talent aim to further increase operating margins.

• Current cash position and operating cash flows are expected to meet liquidity needs for at least the next 12 months.