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EXPD beat earnings estimates by an average of 17.15% over four quarters, supported by strong Q2 growth.
Expeditors International of Washington, Inc. (EXPD - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3, before the market opens.
The company exits the September-end quarter amid persistent geopolitical disruptions, volatile freight rates and uncertainty surrounding global trade policies. Elevated airfreight capacity costs and additional restructuring expenses may also have pressured profitability despite healthy demand across several logistics services.
The Zacks Consensus Estimate for EXPD’s third-quarter 2026 earnings has been revised upward by 5.7% over the past 60 days to $2.24 per share. The consensus mark for earnings implies a 36.6% increase from third-quarter 2025 actuals. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $3.61 billion, indicating an increase of 24.7% from third-quarter 2025 actuals.
Expeditors has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.
Expeditors International of Washington, Inc. Price and EPS Surprise
Factors Likely to Have Influenced EXPD’s Q3 Performance
Elevated Airfreight Costs: Tight airfreight capacity and geopolitical disruptions are likely to have kept transportation costs elevated. Expeditors noted that reduced passenger flights, constrained belly capacity and rising fuel costs were putting significant pressure on air carriers, with buy and sell rates remaining elevated.
Trade and Tariff Uncertainty: Changes in tariffs and global trade policies may also have created volatility. New U.S. tariffs imposed across multiple countries in July added uncertainty around trade flows, while Expeditors cautioned that changes in trade restrictions and carrier pricing could affect profitability unpredictably.
Pricing Volatility: Sudden changes in carrier pricing remain another risk. The company noted that during periods of disruption or seasonal peaks, carriers often raise prices abruptly, which can make it more difficult for Expeditors to maintain historical unitary profitability.
Restructuring Costs: Expenses related to the Global Technology restructuring may have weighed on the third quarter. Expeditors expects total restructuring charges of approximately $27 million, of which $25 million was recognized in the second quarter, with the remaining costs expected to be recorded during the second half of 2026.
What Our Model Says About EXPD
Our proven model does not conclusively predict an earnings beat for Expeditors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
EXPD has an Earnings ESP of -1.46% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
EXPD Q2 Highlights
Expeditors 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.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
UPS is scheduled to report third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for third-quarter 2026 earnings has remained flat at $1.63 per share over the past 60 days. UPS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average beat being 12.4%.
Kirby Corporation (KEX - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank #3 at present. KEX is scheduled to report third-quarter 2026 earnings on Oct. 28.
The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 0.51% to $1.96 per share over the past 60 days. KEX’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark on the other occasion. The average beat is 2.86%.
Image: Bigstock
Expeditors Gears Up for Q3 Earnings: What's in Store for the Stock?
Key Takeaways
Expeditors International of Washington, Inc. (EXPD - Free Report) is scheduled to release third-quarter 2026 results on Nov. 3, before the market opens.
The company exits the September-end quarter amid persistent geopolitical disruptions, volatile freight rates and uncertainty surrounding global trade policies. Elevated airfreight capacity costs and additional restructuring expenses may also have pressured profitability despite healthy demand across several logistics services.
The Zacks Consensus Estimate for EXPD’s third-quarter 2026 earnings has been revised upward by 5.7% over the past 60 days to $2.24 per share. The consensus mark for earnings implies a 36.6% increase from third-quarter 2025 actuals. Meanwhile, the Zacks Consensus Estimate for revenues is pegged at $3.61 billion, indicating an increase of 24.7% from third-quarter 2025 actuals.
Expeditors has an encouraging earnings surprise history. The company’s earnings have outpaced the Zacks Consensus Estimate in each of the trailing four quarters, delivering an average beat of 17.15%.
Expeditors International of Washington, Inc. Price and EPS Surprise
Expeditors International of Washington, Inc. price-eps-surprise | Expeditors International of Washington, Inc. Quote
Factors Likely to Have Influenced EXPD’s Q3 Performance
Elevated Airfreight Costs: Tight airfreight capacity and geopolitical disruptions are likely to have kept transportation costs elevated. Expeditors noted that reduced passenger flights, constrained belly capacity and rising fuel costs were putting significant pressure on air carriers, with buy and sell rates remaining elevated.
Trade and Tariff Uncertainty: Changes in tariffs and global trade policies may also have created volatility. New U.S. tariffs imposed across multiple countries in July added uncertainty around trade flows, while Expeditors cautioned that changes in trade restrictions and carrier pricing could affect profitability unpredictably.
Pricing Volatility: Sudden changes in carrier pricing remain another risk. The company noted that during periods of disruption or seasonal peaks, carriers often raise prices abruptly, which can make it more difficult for Expeditors to maintain historical unitary profitability.
Restructuring Costs: Expenses related to the Global Technology restructuring may have weighed on the third quarter. Expeditors expects total restructuring charges of approximately $27 million, of which $25 million was recognized in the second quarter, with the remaining costs expected to be recorded during the second half of 2026.
What Our Model Says About EXPD
Our proven model does not conclusively predict an earnings beat for Expeditors this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that is not the case here.
EXPD has an Earnings ESP of -1.46% and a Zacks Rank #2 at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
EXPD Q2 Highlights
Expeditors 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.
Stocks to Consider
Here are a few stocks from the broader Zacks Transportation sector that investors may consider, as our model shows that these have the right combination of elements to beat on earnings this reporting cycle.
United Parcel Service (UPS - Free Report) has an Earnings ESP of +0.95% and a Zacks Rank #3 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
UPS is scheduled to report third-quarter 2026 earnings on Oct. 28. The Zacks Consensus Estimate for third-quarter 2026 earnings has remained flat at $1.63 per share over the past 60 days. UPS’ earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, with the average beat being 12.4%.
Kirby Corporation (KEX - Free Report) has an Earnings ESP of +1.87% and a Zacks Rank #3 at present. KEX is scheduled to report third-quarter 2026 earnings on Oct. 28.
The Zacks Consensus Estimate for third-quarter 2026 earnings has been revised upward by 0.51% to $1.96 per share over the past 60 days. KEX’s earnings beat the Zacks Consensus Estimate in three of the preceding four quarters and missed the mark on the other occasion. The average beat is 2.86%.