Expeditors Posts 32% Revenue Growth as AI Demand Supports Airfreight

Expeditors International of Washington posted strong second-quarter growth across its logistics businesses as AI-infrastructure demand supported airfreight, road freight, warehousing and distribution activity.

The company’s diluted earnings rose 51% from a year earlier to $2.03 per share for the quarter ended June 30. Revenue increased 32% to $3.502 billion, while operating income climbed 41% to $349.6 million. Net earnings attributable to shareholders rose 45% to $266.2 million.

Airfreight revenue increased 57% to $1.495 billion. Airfreight tonnage rose 14% from a year earlier and 16% from the first quarter.

Customs brokerage and other-services revenue grew 27% to $1.297 billion. Ocean freight and ocean-services revenue increased 5% to $710.9 million, while ocean volume rose 7% from the first quarter. That marked the first sequential increase since the third quarter of 2025.

A temporary increase in filings related to the International Emergency Economic Powers Act lifted pricing in the customs business.

“Our excellent performance this quarter, with double-digit growth across most of our products, is demonstrating that our strategy around operational excellence is working and allowing us to take market share,” Expeditors President and CEO Daniel R. Wall said.

The company recorded a $25 million pretax restructuring charge tied to its Global Technology team. The restructuring is expected to reduce annual costs by approximately $50 million.

Expeditors returned $461 million to shareholders through dividends and share repurchases during the quarter and $748 million during the first half of 2026. It repurchased 2.3 million shares at an average price of $151.50.

A new authorization for up to $3 billion in share repurchases became effective July 1 after the previous program reduced outstanding shares to 130 million.

Expeditors was also highlighted by Josh Brown and Sean Russo as a holding in Ritholtz Wealth Management’s client strategy. Brown said, “The stock is working, but Wall Street hates it.”

Expeditors Senior Vice President and CFO David A. Hackett said, “Our business performed exceptionally this quarter, and our pipeline of new business is very strong.”

The company plans to release third-quarter results Nov. 3 and hold an investor day in New York on Nov. 18.