Expeditors posts 42% revenue jump on ocean and air strength

Expeditors International grew third-quarter revenue 42% year on year to US$4.1 billion, with operating income up 55% to US$445 million and net earnings attributable to shareholders climbing 55% to US$345 million.

Diluted EPS reached US$2.65, a 62% increase over the third quarter of 2025. The Seattle-based forwarder returned US$197 million to shareholders via buybacks in the quarter, bringing dividends and repurchases to US$946 million for the first nine months of 2026.

The numbers landed despite a rough operating backdrop. Three consecutive typhoons disrupted Asian port operations, idled capacity and knocked vessel schedules off course across major Asian ports and transshipment hubs.

How did Expeditors move the volume?

Ocean container volumes rose 7% year on year, with September and Asian export markets the standout performers. Expeditors said container demand stayed healthy even as congestion bit, and that it leaned on carrier relationships to secure capacity and keep services running through the storms.

Airfreight tonnage grew 13% to a quarterly record. South Asian exports led the charge, alongside demand from hyperscalers and suppliers building out artificial intelligence infrastructure.

Capacity tells the other half of the story. Air cargo capacity stayed constrained by limited fleet growth and delays in new aircraft deliveries. Expeditors said demand continued to outpace available capacity, keeping freight rates elevated — a reality shippers should budget for through year-end.

The company expects port congestion and wider supply chain challenges to persist through the remainder of 2026.

What's driving the services side?

Customs brokerage, Transcon road freight, distribution and order management each posted double-digit revenue growth for a third consecutive quarter. Expeditors credited new customer wins, higher customs declaration volumes and demand from technology companies.

"We continue to gain share, particularly in markets that we have made a strategic focus," said Daniel Wall, President and Chief Executive Officer. Wall added that expanding the customer base and diversifying revenue was supporting more durable performance across different operating conditions.

Where's the efficiency coming from?

Chief Financial Officer David Hackett said revenue grew 42% while headcount increased by only 1%. Operating efficiency hit 36.7%, comfortably above the company's historical 30% target.

That margin gap matters. For forwarders and their customers, it signals Expeditors absorbed volume growth without proportional cost inflation — leverage that funds continued investment in temperature-controlled facilities, critical logistics services, artificial intelligence and other technology solutions.

For carriers, the quarter reinforces that demand from AI infrastructure buildouts and Asian exports is holding air cargo rates up despite macro noise. For shippers, the message is blunter: elevated air rates and Asian port congestion look set to run into 2027 planning cycles.

Expeditors will lay out its strategy in more detail at an Investor Day for shareholders and analysts in New York on 18 November 2026.