second quarter 2026
Filed Aug 4, 2026EXPEDITORS REPORTS SECOND QUARTER 2026 EPS OF $2.03
Second-quarter revenues increased 32%, operating income increased 41%, net earnings attributable to shareholders increased 45%, and diluted EPS increased 51%. Airfreight tonnage increased 14%, while customs and other products delivered double-digit growth for a second consecutive quarter.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenuesGAAP | $ 3,502,335 (in 000's of US dollars) | – | 32% |
| Directly related cost of transportation and other expensesGAAP | $ 2,416,840 (in 000's of US dollars) | – | 38% |
| Salaries and other operating expensesGAAP | $ 735,877 (in 000's of US dollars) | – | 13% |
| Operating incomeGAAP | $ 349,618 (in 000's of US dollars) | – | 41% |
| Net earnings attributable to shareholdersGAAP | $ 266,226 (in 000's of US dollars) | – | 45% |
| Basic earnings attributable to shareholders per shareGAAP | $ 2.03 | – | 50% |
| Diluted earnings attributable to shareholders per shareGAAP | $ 2.03 | – | 51% |
| Basic weighted average shares outstandingGAAP | 130,953 | – | – |
| Diluted weighted average shares outstandingGAAP | 131,372 | – | – |
| Six months ended June 30 RevenuesGAAP | $ 6,285,297 (in 000's of US dollars) | – | 18% |
| Six months ended June 30 Directly related cost of transportation and other expensesGAAP | $ 4,227,991 (in 000's of US dollars) | – | 20% |
| Six months ended June 30 Salaries and other operating expensesGAAP | $ 1,412,860 (in 000's of US dollars) | – | 11% |
| Six months ended June 30 Operating incomeGAAP | $ 644,446 (in 000's of US dollars) | – | 25% |
| Six months ended June 30 Net earnings attributable to shareholdersGAAP | $ 495,836 (in 000's of US dollars) | – | 28% |
| Six months ended June 30 Basic earnings attributable to shareholders per shareGAAP | $ 3.75 | – | 33% |
| Six months ended June 30 Diluted earnings attributable to shareholders per shareGAAP | $ 3.74 | – | 33% |
| Six months ended June 30 Basic weighted average shares outstandingGAAP | 132,241 | – | – |
| Six months ended June 30 Diluted weighted average shares outstandingGAAP | 132,724 | – | – |
| Operating efficiencyother | 32.2% | – | – |
| Airfreight tonnageother | increased 14% | 16% | 14% |
| Ocean container volumeother | remained flat | increased 7% | remained flat |
Capital returns
- Cash returned to shareholders in the form of share repurchases and dividends was $461 million for the second quarter of 2026.
- Cash returned to shareholders in the form of share repurchases and dividends was $748 million for the year-to-date period of 2026.
What drove it
- Air buy and sell rates were highly elevated as demand for air capacity outweighed available space, particularly late in the quarter.
- Airfreight tonnage increased 14% compared to a year ago and was up 16% compared to Q1 2026, primarily from Asia-U.S. and Asia-Europe trade lanes.
- Demand from AI hyperscalers increased demand for freighter space, and e-commerce out of North Asia climbed closer to its level before U.S. restrictions on de minimis entries in Q2 2025.
- Ocean demand and pricing increased late in the quarter, and profitability per-container increased in Q2 2026.
- Customs brokerage and other services generated double-digit growth for a second consecutive quarter, led by AI hyperscalers, high-value technology customers, tariff-related complexity, new customers, and increased declarations from existing customers.
- A temporary surge in IEEPA-related filings drove higher customs pricing, while cost discipline and productivity investments improved results.
Concerns
- Demand for air capacity continued to outweigh available space amid reduced passenger flights and constrained belly capacity related to the conflict in the Middle East.
- Rising fuel costs, tight capacity, and routing challenges placed air carriers under enormous strain.
- The quarter included a $25 million pretax restructuring charge related to the Global Technology team, partially offset by a $16 million gain on the sale of an underutilized property.
- The filing identifies geopolitical uncertainty, tariff policy changes, new capacity, volatile rates, fuel prices or shortages, labor disruptions, and global economic uncertainty as risks.
What to watch
- Whether air capacity constraints, elevated air buy and sell rates, and demand from AI hyperscalers continue.
- Whether the sequential improvement in ocean volumes and profitability per-container develops into a sustained recovery.
- Execution of the Global Technology restructuring, with headcount reductions primarily expected to be realized in the third quarter.
- The expected approximately $50 million annual reduction in cost structure from the restructuring.
- Expansion of Critical Logistics Services Aircraft on Ground capabilities and investments in temperature-controlled capacity.
- Expeditors plans to hold an Investor Day on Wednesday, November 18, 2026, in New York City.
Analysis
Expeditors reported a strong second quarter. Revenues increased 32% to $ 3,502,335 (in 000's of US dollars), operating income increased 41% to $ 349,618 (in 000's of US dollars), and net earnings attributable to shareholders increased 45% to $ 266,226 (in 000's of US dollars). Diluted earnings attributable to shareholders per share increased 51% to $ 2.03. For the first six months, revenues increased 18%, operating income increased 25%, and diluted EPS increased 33%.
The operating backdrop was led by airfreight and customs-related demand. Airfreight tonnage increased 14% year over year and 16% compared with Q1 2026, with tight capacity, constrained belly space, elevated rates, AI hyperscaler demand, and improving North Asia e-commerce activity supporting the market. Ocean container volume remained flat year over year but increased 7% compared with Q1 2026, marking the first sequential increase since the third quarter of 2025. Management said late-quarter demand and pricing lifted profitability per-container.
Cost performance supported the earnings growth. Directly related transportation and other expenses increased 38%, while salaries and other operating expenses increased 13%. Management reported operating efficiency of 32.2%, inclusive of the restructuring charge. The quarter included a $25 million pretax Global Technology restructuring charge, partially offset by a $16 million gain on the sale of an underutilized property. Management expects the restructuring to lower the cost structure by approximately $50 million annually, while continuing technology and artificial intelligence investments.
Capital allocation remained substantial, with $461 million returned to shareholders through dividends and share repurchases during the quarter and $748 million returned during the first half of 2026. Second-quarter headcount remained essentially flat versus Q1 2026, and management said most headcount reductions associated with restructuring activities will be realized in the third quarter.
The filing did not provide formal financial guidance. The central operating issues for subsequent periods are the durability of airfreight capacity constraints and hyperscaler demand, the continuation of the ocean-market improvement, the benefit from customs complexity and higher filing volumes, and realization of the expected restructuring savings amid continued geopolitical, tariff, fuel, capacity, and routing risks.
Management, verbatim
Our excellent performance this quarter, with double-digit growth across most of our products, is demonstrating that our strategy around operational excellence is working and allowing us to take market share.
Daniel R. Wall, President and Chief Executive Officer
Our business performed exceptionally this quarter, and our pipeline of new business is very strong.
David A. Hackett, Senior Vice President and Chief Financial Officer
While this was a strategic restructuring not driven by cost reduction, we expect it will lower our cost structure going forward by approximately $50 million annually, which equates to nearly 10% of our total corporate overhead expenses.
David A. Hackett, Senior Vice President and Chief Financial Officer
Not in the filing
stated, not guessed- Formal forward guidance for revenue, gross margin, operating expenses, tax rate, EPS, cash flow, or capital returns was not provided.
- Previous-period outlook was not provided.
- Product or segment revenue figures for Airfreight services, Ocean freight and ocean services, and Customs brokerage and other services were not provided in the supplied filing text.
- Gross profit and gross margin were not provided.
- Non-GAAP earnings, non-GAAP EPS, and non-GAAP operating income were not provided.
- Cash balance, debt balance, operating cash flow, free cash flow, dividend amount, and share repurchase amount were not provided separately.
- Prior-quarter revenue, operating income, net earnings, EPS, directly related cost of transportation and other expenses, and salaries and other operating expenses were not provided.
- Year-over-year change for operating efficiency was not provided.
- Quarterly revenue figures for Customs, Transcon, Distribution, and Order Management were not provided.
- A precise airfreight tonnage amount and ocean container volume amount were not provided.
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.