Analyst update and quarter highlights
Stifel has adjusted its price target on Expeditors International of Washington (NYSE: EXPD) to $141 from $136, while leaving the stock rated as Hold. The change follows the company reporting fourth-quarter 2025 results in which adjusted earnings per share came in at $1.49, ahead of Stifel estimates of $1.39 and marginally above the consensus street estimate of $1.47.
Financial performance and drivers
Revenue for the quarter declined 3% year-over-year. Management attributed the top-line contraction to continued ocean rate compression and reduced container volumes. Those headwinds were partially offset by resilient airfreight volume growth and sustained double-digit expansion in customs brokerage and other services, which helped limit the earnings impact.
The report noted margin compression across both air and ocean segments versus elevated comparisons from 2024, though executives highlighted structural growth in higher-value service lines as a mitigating factor. The company returned $875 million to shareholders during 2025 and also authorized a new $3 billion share repurchase program.
Shareholder returns and corporate actions
The newly authorized $3 billion buyback program will take effect upon the expiration of the current program and permits the company to repurchase up to 130 million shares. In addition to the repurchase activity, the company has increased its dividend for 29 consecutive years, underscoring a consistent shareholder-return posture.
Expeditors also disclosed an employment agreement with Roberto A. Martinez, who serves as President, Global Products, effective June 1, 2025. Under the terms released, Martinez is to receive an annual base salary of $100,000 and will be eligible for incentive-based compensation.
Analyst perspectives and competing views
Stifel sees the outlook into 2026 as one of modest recovery in air margins, structurally resilient customs growth, and ongoing normalization of ocean markets. The firm identifies ocean rate stability and the continued scale of tech- and ecommerce-driven air demand as key swing factors for the company s near-term performance.
Other broker activity around Expeditors included BofA Securities upgrading the stock from Neutral to Buy and raising its price target to $179.00, citing potential tailwinds from tariff complexity benefiting the Customs Brokerage business. BofA also adjusted another price target to $150.00 from $142.00 following a recent conference call with the company s senior executives. In a separate note later in the coverage, Stifel was reported to have increased its price target to $136.00 while maintaining a Hold rating.
Valuation snapshot
The company carries a market capitalization of $18.38 billion and is trading at a price-to-earnings ratio of 22.27. That valuation was described as appearing slightly undervalued in analysis cited alongside the results.
What this means for markets and operations
The quarter points to a logistics operating environment where ocean rate normalization and volume softness continue to pressure top-line growth, even as higher-margin service lines such as customs brokerage and other services deliver structural expansion. The firm s commitment to significant share repurchases and a long track record of dividend increases underscore a capital-allocation focus on returning cash to shareholders amid industry headwinds.
Note: The article summarizes reported company results, analyst reactions, and disclosed corporate actions as presented in the most recent company update and analyst notes.