Expeditors International reported a sharp increase in third-quarter 2026 earnings, with revenue, operating income and shipment volumes all rising from a year earlier. The logistics company attributed the results to strong customer demand, including from companies building AI infrastructure, and growth across several service lines.
The quarter also showed substantial operating leverage: revenue rose 42% while headcount increased just 1%. Expeditors said it is continuing to invest in specialized logistics facilities, productivity and technology.
Key details
- Earnings and revenue: Diluted earnings per share increased 62% to $2.65. Net earnings attributable to shareholders rose 55% to $345 million, operating income increased 55% to $445 million, and revenue climbed 42% to $4.1 billion.
- Higher shipment volumes: Airfreight tonnage grew 13% year over year, reaching a quarterly record, while ocean container volume increased 7%.
- Growth across services: Customs brokerage, Transcon road freight, distribution and order management each posted double-digit revenue growth for a third consecutive quarter. The company cited new business wins, higher customs declaration volumes and demand across regions from both new and existing customers.
- AI-related demand: Shipments for hyperscalers and their suppliers supporting AI infrastructure were a significant source of airfreight growth and also contributed to demand in other services. Expeditors said it is working to broaden its customer base and diversify revenue.
- Operating leverage: Headcount was up 1% from a year earlier. The company said operating efficiency reached 36.7%, above its historical target of 30%. It attributed the 62% EPS increase to higher operating income, a lower tax rate and a lower share count.
- Airfreight conditions: Demand outpaced available capacity, which the company said remained constrained by limited fleet expansion and aircraft delivery delays. Capacity was also affected by aircraft redeployments linked to changes in European rules for low-value e-commerce imports. Airfreight rates remained elevated.
- Ocean freight conditions: Volumes strengthened after flattening in the second quarter, particularly in September and across Asia export markets. Congestion at Asian ports and transshipment hubs, worsened by three consecutive typhoons, disrupted service. Expeditors said carrier relationships helped it secure capacity and maintain service, and it expects congestion and supply-chain challenges to continue through the rest of 2026.
- Other services and customs: Customs brokerage and related services benefited from tariff-related fees and post-entry work that began in the third quarter of 2025. Expeditors said the latest quarter’s growth was also driven by new business, increased declaration volumes and broader customs activity. Transcon freight and warehousing and distribution were particularly strong.
- Shareholder returns: The company returned $197 million to shareholders through repurchases and dividends during the quarter, bringing the year-to-date total to $946 million.
- Investments: Expeditors said it is investing in temperature-controlled facilities, critical logistics services, productivity initiatives, artificial intelligence and other technology solutions.
The results point to broad-based growth alongside particularly strong demand from high-value technology customers. Expeditors also emphasized that it is expanding its customer base and investing in operations while returning capital to shareholders.