Expeditors International Reports 4% Revenue Growth to $2.78 Billion in Q1 2026

Expeditors International of Washington, Inc. reported a 4% increase in total revenues for the first quarter of 2026, reaching $2.78 billion compared to $2.67 billion in the same period of 2025. The growth was primarily driven by a 14% increase in airfreight services revenue, which totaled $1.03 billion, and a 17% rise in customs brokerage and other services, amounting to $1.15 billion. However, this was partially offset by a significant 23% decline in ocean freight services revenue, which fell to $598.9 million due to decreased average sell and buy rates and a reduction in ocean containers shipped.

Operating income for the quarter increased by 11% to $294.8 million, up from $265.9 million in the prior year. Net earnings attributable to shareholders also rose by 13% to $229.6 million, translating to diluted earnings per share of $1.71, a 16% increase from $1.47 in the first quarter of 2025. The company’s effective income tax rate decreased to 24.9% from 26.0% in the previous year, primarily due to favorable changes in share-based compensation.

In terms of operational developments, Expeditors experienced a 6% increase in employee headcount, contributing to a 9% rise in salaries and related costs, which totaled $499.6 million. The company continues to focus on its technology and logistics services, particularly in response to strong demand from technology customers investing in artificial intelligence infrastructure. The company operates in over 60 countries, and its revenue is closely tied to global economic conditions, which remain uncertain due to geopolitical tensions and fluctuating trade policies.

Looking ahead, Expeditors anticipates continued volatility in the logistics market, particularly in ocean freight services, where excess capacity is expected to pressure rates. The company is also monitoring the impact of recent U.S. Supreme Court rulings on tariffs and their potential effects on customs brokerage services. Management remains cautious about the future, acknowledging that ongoing geopolitical conflicts and economic uncertainties could significantly affect operations and financial results. Despite these challenges, the company believes its current cash position and operating cash flows will be sufficient to meet capital and liquidity requirements for the foreseeable future.