Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Expeditors delivered robust second-quarter results, with revenue growing sharply as AI-related demand from technology customers drove surging airfreight volumes and customs brokerage activity. Operating income rose significantly, aided by higher volumes and a $16 million property sale gain, though partially offset by $25 million in restructuring costs for its Global Technology group. Ocean freight showed early signs of recovery with rates improving late in the quarter, but geopolitical disruptions and tariff uncertainty cloud the outlook.
Revenue
$3.5B
+32.07% YoY
EPS (Diluted)
$2.03
+51.49% YoY
Operating Income
$349.62M
+41.13% YoY
Source: SEC XBRL
EXPD reported Q2 FY2026 revenue of $3.5B, up 32.1% year over year. Operating margin was 10.0%, up 0.7 points from 9.3% a year earlier. Operating cash flow was $178.64M, down 0.3% year over year. EXPD's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 2.03 | 1.72 | Beat +18.0% |
| Mar 2026 | 1.71 | 1.35 | Beat +26.2% |
| Dec 2025 | 1.49 | 1.49 | Miss -0.2% |
| Sep 2025 | 1.64 | 1.43 | Beat +15.1% |
Reported EPS of $2.03 versus the $1.72 analyst consensus — a +18.0% beat for Jun 2026.
Compiled by AI from 10-Q Item 2 of this filing
Airfreight services revenues jumped 57%, fueled by a 44% increase in average sell rates and a 14% rise in tonnage, as technology customers invested heavily in AI infrastructure, particularly on exports from North and South Asia.
Source: 10-Q Item 2 MD&A
Ocean freight consolidation revenues increased 3% in Q2 as average buy and sell rates rose 10% and 3%, respectively, with demand recovering in May. However, buy rate growth outpaced sell rates, compressing margins, and overall ocean revenues rose only 5%.
Source: 10-Q Item 2 MD&A
Customs brokerage and other services revenues grew 27%, driven by higher volumes and fees stemming from an increasingly complex tariff and trade environment. Road freight and warehousing also saw strong demand, up over 20% in some regions.
Source: 10-Q Item 2 MD&A
The Company recorded $25 million in expenses related to a restructuring of its Global Technology group, mostly recognized in the second quarter. This impacted salary and related costs, which rose 22% overall including higher incentive compensation from improved results.
Source: 10-Q Item 2 MD&A
The Iran conflict and closure of the Strait of Hormuz disrupted operations in several Middle Eastern countries starting in late February 2026, leading to air and ocean carrier surcharges and capacity constraints, though the financial impact on the region was not material.
Source: 10-Q Item 2 MD&A
Compiled by AI from 10-Q Item 2 of this filing · 2 high, 3 medium, 0 low
Broad U.S. tariffs imposed on multiple countries and sectors, along with retaliatory actions, could significantly impact global trade volumes and demand for logistics services. The dynamic trade environment creates operational complexity and may shift customer supply chains away from key routes.
Source: 10-Q Item 2 MD&A
The Iran conflict and closure of the Strait of Hormuz have disrupted air and ocean freight capacity, increased surcharges, and created security risks. Ongoing instability could further affect trade flows and operating costs in the region.
Source: 10-Q Item 2 MD&A
Carrier behavior, changes in fuel prices, and demand fluctuations can create rapid pricing swings. The company may not be able to pass through higher buy rates to customers quickly, compressing margins, especially in ocean freight.
Source: 10-Q Item 2 MD&A
The restructuring of the Global Technology group could cause operational disruptions or fail to achieve intended efficiencies, while increased technology spending is necessary to maintain competitive systems capabilities.
Source: 10-Q Item 2 MD&A
A significant portion of recent growth has been driven by technology customers' investment in AI infrastructure. A slowdown in such spending or a broader economic downturn could reduce airfreight volumes and customs brokerage demand, particularly in North Asia and South Asia.
Source: 10-Q Item 2 MD&A
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.50 $B | 2.65 $B | +32.07% |
Operating Income $M | 349.62 $M | 247.74 $M | +41.13% |
Net Income $M | 266.23 $M | 183.57 $M | +45.02% |
EPS (Basic) $ | 2.03 $ | 1.35 $ | +50.37% |
EPS (Diluted) $ | 2.03 $ | 1.34 $ | +51.49% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Expeditors International delivered a strong Q1 2026 with revenue up 4.4% YoY to $2.78B, net income surging 12.7% to $229.6M, and EPS jumping 16.2% to $1.72, while aggressively returning capital to shareholders via $287.6M in share buybacks.
Expeditors International (EXPD) delivered modest FY2025 growth with revenue up 4.4% to $11.07B and net income essentially flat at $810M, while operating cash flow surged 39.1% to $1.01B, reflecting strong cash generation despite slight margin compression.
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