The strong beat and raised operational efficiency (36.7% margin) suggest continued momentum from AI/hyperscaler demand and tariff-related customs activity. Monitor the upcoming Investor Day on November 18, 2026 for any strategic updates on capacity investments and margin targets.
How the stock moved after the report
⚠ Clustered BULLISH VIEWSTOCK BELOW ENTRY AT T+1- T+0 · Nov 3 $204.31entry
- T+1 · 16h ago −3.24%α −4.89% · $197.69
- T+5 · in 5d Pending
- T+20 · in 27d Pending
- T+60 · in 3mo Pending
Price Chart
REPLAYWatch the reaction play outHow similar events traded
Executive Summary
Expeditors reported Q3 2026 diluted EPS of $2.65, up 62% YoY, on revenue of $4.1 billion, up 42% YoY. Both EPS and revenue significantly exceeded consensus estimates of $2.23 and $3.60B, driven by broad-based double-digit growth across airfreight, ocean freight, and customs brokerage. Operating margin expanded to 36.7% from 30% a year ago, and the company guided for continued strong demand from hyperscalers and AI infrastructure customers.
Key Financial Metrics
Key Facts
- Diluted EPS of $2.65, up 62% from $1.64 in Q3 2025
- Revenue of $4.1 billion, up 42% from $2.9 billion in Q3 2025
- Operating income of $445 million, up 55% from $288 million in Q3 2025
- Operating margin expanded to 36.7% from 30% in Q3 2025
- Airfreight tonnage increased 13% YoY; ocean container volume increased 7% YoY
- Customs, Transcon, Distribution, and Order Management each achieved double-digit revenue growth for a third consecutive quarter
- Headcount increased only 1% YoY, demonstrating operating leverage
- Returned $197 million to shareholders via share repurchases in Q3 2026
Financial Impact
EPS of $2.65 vs consensus $2.23 (beat by 18.8%); revenue of $4.1B vs consensus $3.60B (beat by 14.1%)
Segment Breakdown
| Segment | Revenue | Growth |
|---|---|---|
| Airfreight services | $1.5B | +51.4% |
| Ocean freight and ocean services | $1.1B | +47.8% |
| Customs brokerage and other services | $1.5B | +29.4% |
Risk Factors
- Geopolitical uncertainty and ongoing conflicts in the Middle East and Ukraine could disrupt supply chains
- Potential normalization of elevated airfreight and ocean rates as capacity constraints ease
- Congestion and supply chain challenges expected to persist through remainder of 2026
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001193125-26-444872 |
| Exhibit: expd-20261103.htm | 0001193125-26-444872 |
| Document: 0001193125-26-444872-index-headers.html | 0001193125-26-444872 |
| Document: 0001193125-26-444872-index.html | 0001193125-26-444872 |
| Document: 0001193125-26-444872.txt | 0001193125-26-444872 |
| 8-K Data (Synthetic) | 0001193125-26-444872 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Nov 3, 2026 1d ago | 8-K | $204.31 | awaiting T+60 | awaiting T+60 | $197.69 (−3.24%) |
Nov 3, 2026 1d ago | 8-K | $204.31 | awaiting T+60 | awaiting T+60 | $197.69 (−3.24%) |
Oct 20, 2026 15d ago | Institutional Cluster | $197.01 | awaiting T+60 | awaiting T+60 | $197.69 (+0.35%) |
Sep 16, 2026 7w ago | 8-K | $189.04 | awaiting T+60 | awaiting T+60 | $197.69 (+4.58%) |
Aug 4, 2026 13w ago | 8-K | $181.48 $199.64 | ▲ +10.01% | ▲ +9.63% | $197.69 (+8.93%) |
May 20, 2026 24w ago | 8-K | $156.38 $188.27 | ▲ +20.39% | ▲ +16.09% | $197.69 (+26.41%) |
May 5, 2026 26w ago | 8-K | $151.24 $167.89 | ▲ +11.01% | ▲ +8.95% | $197.69 (+30.71%) |
May 5, 2026 26w ago | 8-K | $153.08 $167.01 | ▲ +9.10% | ▲ +6.36% | $197.69 (+29.14%) |
Apr 28, 2026 27w ago | Court Ruling | $148.79 $171.34 | ▼ −15.16% | ▼ −11.29% | $197.69 (−32.87%) |
Mar 24, 2026 32w ago | DEFA14A | $141.97 $161.32 | ▲ +13.63% | ▼ −0.69% | $197.69 (+39.25%) |
US Market Status
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