We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
EXPD Q1 Earnings & Revenues Top Estimates on Airfreight Strength
Read MoreHide Full Article
Key Takeaways
EXPD posted Q1 EPS $1.71 and revenues of $2.78B, topping consensus estimates.
Airfreight tonnage rose 5% y/y; tech-customer strength and early-quarter yield lifted results.
EXPD generated $309.2M operating cash and repurchased $287.6M stock, 2.0M shares at $145.90.
Expeditors International of Washington (EXPD - Free Report) posted first-quarter 2026 earnings of $1.71 per share, up 16.3% year over year and above the Zacks Consensus Estimate of $1.33. Total revenues came in at $2.78 billion, up 4.4% from the year-ago quarter and ahead of the consensus mark of $2.58 billion.
Results reflected resilient demand in select end markets and solid execution amid disruption late in the quarter. Airfreight tonnage increased 5% year over year, supported by strength from technology customers and improved per-kilo profitability in the early part of the quarter.
Expeditors International of Washington Price, Consensus and EPS Surprise
EXPD Navigates Disruption With Its Non-Asset Model
Management pointed to significant disruption in the final month of the quarter, emphasizing the company’s ability to develop routing strategies and customer solutions as conditions shifted. EXPD leaned on its non-asset-based model to stay flexible, keep freight moving and protect profitability across products and geographies.
The company also highlighted a more stable balance between sell and buy pricing early in the quarter in airfreight, which supported gross margin improvement sequentially. As conditions became more dynamic, EXPD stressed risk management and rapid adjustments to rates and capacity availability.
Expeditors Sees Mix Shift Across Freight Lines
Performance varied sharply by product line, underscoring the importance of diversification within the portfolio. Airfreight services revenues rose to $1.03 billion, reflecting higher volumes and firmer yield dynamics earlier in the quarter. Customs brokerage and other services revenues increased to $1.15 billion, benefiting from higher entry volumes, tariff-driven complexity and pricing initiatives.
By contrast, ocean freight and ocean services revenues declined to $598.9 million as industry conditions remained pressured. Ocean container volume decreased 4% year over year, and management cited lower pricing and softer volumes, particularly on exports from Asia, as profitability per container came under pressure despite favorable buy rates and cost control.
EXPD Keeps Costs Disciplined as Profitability Rises
EXPD’s operating income improved to $294.8 million, up 11% year over year, as revenue growth and product mix helped lift profitability. Operating margin expanded to about 10.6% compared with roughly 10% in the year-ago quarter, reflecting better operating leverage despite an uneven freight environment.
On the cost side, directly related transportation and other expenses increased to $1.81 billion, while salaries and other operating expenses rose to $677 million. Management noted that headcount was sequentially flat compared with the prior quarter, and that operating efficiency returned to the company’s 30% historical target as productivity improved with recent investments in higher-growth opportunities and technology.
Expeditors Generates Solid Cash, Steps Up Buybacks
Cash generation remained healthy in the quarter. EXPD produced $309.2 million of net cash from operating activities and continued to prioritize share repurchases as its primary form of returning capital. The company repurchased $287.6 million of common stock during the period.
Repurchase activity also increased on a unit basis. EXPD bought back 2 million shares at an average price of $145.90 in the quarter, compared with 1.5 million shares at an average price of $117.29 in the year-ago period. Management framed the pace of buybacks as consistent with its disciplined capital allocation approach.
EXPD Balance Sheet Stays Liquid Amid Uncertainty
EXPD, currently carrying a Zacks Rank #3 (Hold), ended the quarter with cash and cash equivalents of $1.32 billion, essentially flat with year-end 2025 levels. Total assets were $4.78 billion at March 31, 2026, with accounts receivable of $2.06 billion, reflecting the scale of global forwarding and brokerage activity during the period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The operating footprint also continued to expand. Employee full-time equivalents totaled 20,361 at the end of the quarter compared with 19,203 a year earlier, with growth across multiple regions. With management describing the freight environment as highly unpredictable, EXPD reiterated its focus on aligning resources to maximize profitability while supporting customer needs in a rapidly shifting global trade backdrop.
Q1 Performances of Some Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents.
Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by 4 cents, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.
Zacks' 7 Best Strong Buy Stocks (New Research Report)
Valued at $99, click below to receive our just-released report
predicting the 7 stocks that will soar highest in the coming month.
View the Zacks #1 Rank List
Image: Shutterstock
EXPD Q1 Earnings & Revenues Top Estimates on Airfreight Strength
Key Takeaways
Expeditors International of Washington (EXPD - Free Report) posted first-quarter 2026 earnings of $1.71 per share, up 16.3% year over year and above the Zacks Consensus Estimate of $1.33. Total revenues came in at $2.78 billion, up 4.4% from the year-ago quarter and ahead of the consensus mark of $2.58 billion.
Results reflected resilient demand in select end markets and solid execution amid disruption late in the quarter. Airfreight tonnage increased 5% year over year, supported by strength from technology customers and improved per-kilo profitability in the early part of the quarter.
Expeditors International of Washington Price, Consensus and EPS Surprise
Expeditors International of Washington price-consensus-eps-surprise-chart | Expeditors International of Washington Quote
EXPD Navigates Disruption With Its Non-Asset Model
Management pointed to significant disruption in the final month of the quarter, emphasizing the company’s ability to develop routing strategies and customer solutions as conditions shifted. EXPD leaned on its non-asset-based model to stay flexible, keep freight moving and protect profitability across products and geographies.
The company also highlighted a more stable balance between sell and buy pricing early in the quarter in airfreight, which supported gross margin improvement sequentially. As conditions became more dynamic, EXPD stressed risk management and rapid adjustments to rates and capacity availability.
Expeditors Sees Mix Shift Across Freight Lines
Performance varied sharply by product line, underscoring the importance of diversification within the portfolio. Airfreight services revenues rose to $1.03 billion, reflecting higher volumes and firmer yield dynamics earlier in the quarter. Customs brokerage and other services revenues increased to $1.15 billion, benefiting from higher entry volumes, tariff-driven complexity and pricing initiatives.
By contrast, ocean freight and ocean services revenues declined to $598.9 million as industry conditions remained pressured. Ocean container volume decreased 4% year over year, and management cited lower pricing and softer volumes, particularly on exports from Asia, as profitability per container came under pressure despite favorable buy rates and cost control.
EXPD Keeps Costs Disciplined as Profitability Rises
EXPD’s operating income improved to $294.8 million, up 11% year over year, as revenue growth and product mix helped lift profitability. Operating margin expanded to about 10.6% compared with roughly 10% in the year-ago quarter, reflecting better operating leverage despite an uneven freight environment.
On the cost side, directly related transportation and other expenses increased to $1.81 billion, while salaries and other operating expenses rose to $677 million. Management noted that headcount was sequentially flat compared with the prior quarter, and that operating efficiency returned to the company’s 30% historical target as productivity improved with recent investments in higher-growth opportunities and technology.
Expeditors Generates Solid Cash, Steps Up Buybacks
Cash generation remained healthy in the quarter. EXPD produced $309.2 million of net cash from operating activities and continued to prioritize share repurchases as its primary form of returning capital. The company repurchased $287.6 million of common stock during the period.
Repurchase activity also increased on a unit basis. EXPD bought back 2 million shares at an average price of $145.90 in the quarter, compared with 1.5 million shares at an average price of $117.29 in the year-ago period. Management framed the pace of buybacks as consistent with its disciplined capital allocation approach.
EXPD Balance Sheet Stays Liquid Amid Uncertainty
EXPD, currently carrying a Zacks Rank #3 (Hold), ended the quarter with cash and cash equivalents of $1.32 billion, essentially flat with year-end 2025 levels. Total assets were $4.78 billion at March 31, 2026, with accounts receivable of $2.06 billion, reflecting the scale of global forwarding and brokerage activity during the period. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The operating footprint also continued to expand. Employee full-time equivalents totaled 20,361 at the end of the quarter compared with 19,203 a year earlier, with growth across multiple regions. With management describing the freight environment as highly unpredictable, EXPD reiterated its focus on aligning resources to maximize profitability while supporting customer needs in a rapidly shifting global trade backdrop.
Q1 Performances of Some Other Transportation Companies
Delta Air Lines (DAL - Free Report) reported first-quarter 2026 earnings (excluding $1.08 from non-recurring items) of 64 cents per share, which beat the Zacks Consensus Estimate of 61 cents.
Earnings increased 39.1% on a year-over-year basis due to high labor costs. Adjusted revenues in the March-end quarter were $14.2 billion, beating the Zacks Consensus Estimate of $14 billion and increasing on a year-over-year basis.
J.B. Hunt Transport Services (JBHT - Free Report) posted first-quarter 2026 earnings per share of $1.49, up 27% from $1.17 a year ago. The result topped the Zacks Consensus Estimate by 4 cents, a 2.8% surprise.
Operating revenues totaled $3.06 billion, rising 4.6% year over year. Revenues beat the consensus mark of $2.94 billion, resulting in a 3.9% surprise, as demand proved resilient across several service offerings, led by Intermodal volume growth and higher revenue per load in select highway-related businesses.