Expandable packer assembly and setting assembly

A packer system includes a packer assembly and a setting assembly. The packer assembly includes a packer mandrel that includes a shifting profile and an activation profile formed on an inner surface of the packer mandrel and an expandable packer. The setting assembly is positionable within a bore of the packer mandrel and includes a setting mandrel, an activation collet positioned about the setting mandrel and engageable with the activation profile to shear a first shear device and enable the setting assembly to move from a run-in position to an intermediate position, and a setting collet positioned about the setting mandrel and engageable with the shifting profile to shear a second shear device and enable the setting assembly to move from the intermediate position to a setting position where fluid within a bore of the setting mandrel can flow through the setting port to expand the expandable packer.