A month has gone by since the last earnings report for Expeditors International (EXPD Quick QuoteEXPD - Free Report) . Shares have added about 4.9% in that time frame, outperforming the S&P 500.

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 the latest earnings report in order to get a better handle on the important drivers.

EXPD Tops Q1 Earnings & Revenue Estimates

Expeditors 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 higher per-kilo profitability in the early part of the quarter.

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 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.

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.

How Have Estimates Been Moving Since Then?

Since the earnings release, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 6.57% due to these changes.

VGM Scores

Currently, 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.

Outlook

Estimates 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.

Performance of an Industry Player

Expeditors International is part of the Zacks Transportation - Services industry. Over the past month, Schneider National (SNDR Quick QuoteSNDR - Free Report) , a stock from the same industry, has gained 18.3%. The company reported its results for the quarter ended March 2026 more than a month ago.

Schneider National reported revenues of $1.4 billion in the last reported quarter, representing a year-over-year change of -0.2%. EPS of $0.12 for the same period compares with $0.16 a year ago.

Schneider National is expected to post earnings of $0.22 per share for the current quarter, representing a year-over-year change of +4.8%. Over the last 30 days, the Zacks Consensus Estimate has changed -0.6%.

The overall direction and magnitude of estimate revisions translate into a Zacks Rank #3 (Hold) for Schneider National. Also, the stock has a VGM Score of B.