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It has been about a month since the last earnings report for Expeditors International (EXPD - Free Report) . Shares have added about 2.6% in that time frame, outperforming the S&P 500.But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Expeditors International due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important catalysts.
EXPD Tops Q2 Earnings & Revenue EstimatesExpeditors International of Washington reported second-quarter 2026 earnings of $2.03 per share, up 51.5% year over year and 20.8% above the Zacks Consensus Estimate of $1.68. Revenues increased 32.1% to $3.50 billion, surpassing the consensus mark of $2.90 billion by 20.7%.
Results benefited from broad-based growth across most products, led by airfreight and customs-related services. Airfreight tonnage advanced 14% year over year, while ocean container volume was flat.
EXPD Gains From Strong Airfreight DemandAirfreight services revenues surged 57.1% year over year to $1.49 billion. The increase reflected higher volumes and elevated buy and sell rates as demand for air capacity exceeded available space, particularly late in the quarter.
Tonnage increased 16% sequentially, supported by Asia-U.S. and Asia-Europe trade lanes. Management also cited sustained demand from artificial intelligence hyperscalers, including customers requiring upper-deck freighter capacity for servers.
Expeditors Sees Better Ocean Freight TrendsOcean freight and ocean services revenues rose 5.2% to $710.9 million. Although quarterly container volume was unchanged from the prior-year period, volumes improved 7% from the first quarter of 2026.
Management noted that carriers carefully managed capacity amid market disruptions, supporting higher rates late in the quarter. Stronger demand and improved pricing also increased profitability per container, signaling some stabilization after an extended ocean-market downturn.
EXPD Benefits From Customs ComplexityCustoms brokerage and other services revenues climbed 26.6% to $1.30 billion. Customs, Transcon, Distribution and Order Management each delivered double-digit revenue growth for the second consecutive quarter.
Demand from AI hyperscalers and other high-value technology customers supported the increase. Tariff-related complexity, new customer wins and higher declarations from existing customers also lifted customs activity. A temporary surge in filings tied to the International Emergency Economic Powers Act contributed to higher pricing.
Expeditors Expands Profitability Despite CostsOperating income increased 41.1% year over year to $349.6 million. The operating margin improved to approximately 10% from 9.3% in the year-ago quarter, reflecting strong revenue growth and productivity gains.
Salaries and other operating expenses increased 13.1% to $735.9 million. The quarter included a $25 million pretax restructuring charge related to the Global Technology team, partly offset by a $16 million gain from the sale of an underutilized property.
EXPD Targets Lower Technology OverheadThe Global Technology restructuring is expected to reduce the company’s annual cost structure by approximately $50 million. Management said the savings equal nearly 10% of total corporate overhead expenses and should begin to benefit results after the restructuring actions are completed.
Expeditors plans to continue investing in artificial intelligence, technology talent and modernization initiatives. Operating efficiency reached 32.2% during the quarter despite the restructuring charge, while headcount remained essentially flat sequentially before the planned workforce reductions.
Expeditors Posts Broad Regional GrowthOperating income increased across most geographic regions. U.S. operating income rose 35.5% to $169.5 million, while South Asia operating income nearly doubled to $49.3 million.
Europe operating income climbed 34.9% to $33.8 million. The Middle East, Africa and India region generated operating income of $20.6 million, up sharply from $7.3 million a year earlier, despite geopolitical disruptions affecting freight capacity and routing.
EXPD Maintains Strong Shareholder ReturnsNet cash from operating activities totaled $178.6 million, nearly matching the $179.2 million generated in the prior-year quarter. Accounts receivable increased significantly as business activity and revenues expanded.
The company repurchased 2.3 million shares during the quarter at an average price of $151.50, spending $354.9 million. Including dividends, Expeditors returned $461 million to its shareholders in the quarter and $748 million during the first half of 2026.
How Have Estimates Been Moving Since Then?It turns out, estimates review have trended upward during the past month.
The consensus estimate has shifted 18.88% due to these changes.
VGM ScoresAt this time, Expeditors International has a average Growth Score of C, a grade with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of D on the value side, putting it in the bottom 40% for this investment strategy.
Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.
OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise Expeditors International has a Zacks Rank #1 (Strong Buy). We expect an above average return from the stock in the next few months.