Expeditors tops Q3 profit estimates and beats on revenue

Expeditors International of Washington (EXPD) said on Nov. 3 that third-quarter diluted earnings rose to $2.65 per share, from $1.64 a year earlier, topping the $2.27 consensus estimate. Revenue of $4.11 billion beat the $3.64 billion estimate, according to the company's press release.

Shares were little changed in regular trading as of 2:10 p.m. ET.

Here's how the company did:

• Diluted EPS: $2.65 vs. $1.64 a year earlier, against a $2.27 consensus estimate
• Revenue: $4.11 billion vs. $2.89 billion a year earlier, against a $3.64 billion estimate
• Net earnings attributable to shareholders: $345 million vs. $222 million a year earlier
• Operating income: $445 million vs. $288 million a year earlier

Revenue increased 42% from a year earlier, the company said.

President and Chief Executive Officer Daniel R. Wall said: “We continue to gain share, particularly in markets that we have made a strategic focus.”

Airfreight tonnage increased 13% and ocean container volume increased 7%, the release said. Customs, Transcon, Distribution and Order Management each achieved double-digit revenue growth for a third consecutive quarter.

Cash returned to shareholders through share repurchases and dividends was $197 million in the third quarter and $946 million for the first nine months of 2026.

Costs and efficiency

Senior Vice President and Chief Financial Officer David A. Hackett said: “Our operating efficiency increased to 36.7%, well above our historical target of 30%.”

Headcount rose 1% from a year earlier, the company said. The company said the 55% growth in operating income, along with a lower tax rate and a lower share count, drove the 62% increase in diluted EPS.

The company said it will keep investing in temperature-controlled facilities, logistics services and technology, including artificial intelligence.

Outlook and Investor Day

The company said it expects congestion and supply chain challenges to persist through the remainder of 2026. Three back-to-back typhoons idled capacity and halted port operations at major Asian ports and transshipment hubs during the quarter, it said.

Expeditors plans to hold an Investor Day for shareholders and analysts on the morning of Nov. 18 in New York City.