FedEx Corporation (FDX) Earnings

FedEx Corporation

FDX · NYSE

Symbol: FDX
Type: Stock
Sector: Consumer Discretionary
Industry: Air Freight/Delivery Services
Country: North America
Exchange: NYSE

FedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, ecommerce, and business services. With annual revenue of $86 billion, the company offers integrated business solutions utilizing its flexible, efficient, and intelligent global network. Consistently ranked among the world's most admired and trusted employers, FedEx inspires its more than 450,000 employees to remain focused on safety, the highest ethical and professional standards, and the needs of their customers and communities. FedEx is committed to connecting people and possibilities around the world responsibly and resourcefully, with a goal to achieve carbon-neutral operations by 2040. To learn more, please visit fedex.com/about.

Key Issues

Bullish view

FedEx increased fiscal 2026 revenue to $94.7 billion from $87.9 billion and net income to $4.4 billion from $4.1 billion. Simply Wall St also forecasts annual earnings growth of 8.2% and revenue growth of 4.1%.

Bearish view

The reported earnings improvement was relatively modest against the revenue increase, and HSBC cut its target to $289.89 while retaining a Hold rating. That implies concern that operating or valuation performance may not justify the broader bullish case.

Analyst Consensus

See all

Buy

27 analysts

$317

Current

—

Low

$360

Average

—

High

Average target implies +13.63% versus the current price.

Earnings History

BeatMissNo estimate

Dec 2026upcoming

Next quarter

Consensus is $5.75 EPS for Dec 2026 across 6 estimates, ranging $3.76 to $6.39.

FDX Sep 2026

Reported Oct 28, 2026 · after the close

: 15.43%
: +1.06%

: $3.24
: $3.74
: —
: $30.64B

Reported results

: $30.64B; from $26.89B
: $1.61B; from $1.13B
: 5.26%; from 4.20%
: $5.33B; from $1.14B
: $22.21; from $4.78

Highlights

Adjusted earnings beat: Third-quarter adjusted diluted EPS was $3.74, 15.43% above the $3.24 consensus and up from $2.93 a year earlier; GAAP diluted EPS was $1.21, down from $2.73 in the prior-year continuing-operations period.
Operating growth: Revenue rose 12% year over year to $22.855 billion and operating income increased 10% to $1.067 billion. Adjusted operating income was $1.197 billion, with a 5.3% margin versus 5.1% a year ago.
Higher yields, more volume: FedEx cited stronger package yields, higher package volumes and ongoing structural cost reductions as the main drivers, partly offset by higher purchased-transportation rates, wages, variable compensation and trade-policy effects.
Outlook raised: Calendar 2026 revenue growth guidance increased to about 12% from 11%; adjusted diluted EPS guidance rose to $18.00–$18.60 from $16.90–$18.10.
Domestic segment: Express U.S. Domestic revenue grew 10% to $14.710 billion and operating income rose 7% to $946 million, though margin contracted 20 basis points to 6.4%. Composite package yield rose 7% and average daily package volume increased 2%.
International segment: Express International revenue increased 17% to $7.465 billion and operating income rose 15% to $220 million; margin was 2.9% versus 3.0%. Export and freight growth and higher yields were partly offset by costs and weaker international domestic package volume.
Portfolio and capital moves: FedEx completed the Freight spin-off in June, retained a 19.9% stake, and recorded a $1.238 billion quarterly fair-value loss on it. It repurchased $2.0 billion of shares during June–September and sold FedEx Supply Chain for about $1.4 billion on October 1.
Period distinction: The release’s three-month quarter ended September 30 had revenue of $22.855 billion and GAAP diluted EPS of $1.21. The filing also presents a four-month transition period, including June, with revenue of $30.642 billion and GAAP diluted EPS of $22.21.

Analysis

FedEx’s September 2026 quarter was an operating improvement obscured in GAAP earnings by a mark-to-market loss on its retained FedEx Freight shares. Adjusted diluted EPS of $3.74 beat the $3.24 consensus by 15.43% and rose 28% from $2.93 a year earlier. Revenue increased 12% to $22.855 billion and operating income rose 10% to $1.067 billion; adjusted operating income was $1.197 billion, with a 5.3% margin versus 5.1%. GAAP diluted EPS was $1.21, compared with $2.73 from continuing operations a year ago, including a $1.238 billion investment loss and a $627 million debt-extinguishment gain among the adjustments. Against the prior quarter on file, revenue was $22.855 billion versus $24.00 billion and operating income was $1.067 billion versus $1.35 billion; the comparison is complicated by the Freight spin-off and the company’s fiscal-calendar transition. The separate four-month transition-period figures—$30.642 billion of revenue and $22.21 of GAAP EPS—are not the three-month quarter’s results.

The core print reflected better package yields and volumes, with cost reductions supporting earnings despite higher purchased transportation, wages and fuel costs. Domestic and international revenue grew 10% and 17%, respectively. FedEx raised calendar 2026 revenue growth guidance to about 12% and adjusted EPS guidance to $18.00–$18.60, while continuing portfolio simplification and returning capital through $2.0 billion of share repurchases.

Quarterly operating performance

FedEx’s reported three-month results show stronger operating performance, with adjusted measures isolating the freight investment’s market-value swings and other specified items. Revenue growth outpaced operating-income growth, while adjusted margin improved modestly year over year.

Consolidated results: Revenue was $22.855 billion, up 12%; GAAP operating income was $1.067 billion, up 10%, and GAAP operating margin was 4.7% versus 4.8%. Adjusted operating income was $1.197 billion and adjusted margin was 5.3%, up from $1.033 billion and 5.1%.
Earnings: Adjusted diluted EPS of $3.74 exceeded the $3.24 consensus and the prior-year adjusted $2.93. GAAP diluted EPS was $1.21, compared with $2.73 from continuing operations in the prior-year quarter; the current quarter included a $1.238 billion loss on the retained Freight investment and a $627 million gain from debt extinguishment.
Cost pressures: Purchased transportation expense rose 19% to $6.455 billion and fuel expense rose 64% to $1.270 billion. Management also identified higher wage rates and variable compensation as offsets to yield, volume and transformation benefits.
Transition-period context: Following the June 1 change in fiscal year-end, the filing also reports four months ended September 30: revenue of $30.642 billion, operating income of $1.611 billion and diluted EPS of $22.21. These figures include June and should not be confused with the three-month quarter.

Express U.S. Domestic

Domestic performance paired steady volume gains with stronger pricing and mix. The margin slipped year over year as purchased transportation and fuel costs grew faster than revenue, even as operating income advanced.

Revenue and profit: Revenue increased 10% to $14.710 billion; operating income rose 7% to $946 million and operating margin was 6.4%, down 20 basis points.
Volume and yield: Average daily domestic package volume grew 2%, including 4% growth in priority and 2% growth in ground; deferred volume declined 2%. Composite package yield increased 7% to $15.32.
Cost offsets: Purchased transportation expense rose 18% to $4.473 billion and fuel expense rose 56% to $410 million. Salaries and benefits increased 3% to $4.624 billion, with higher wage rates and costs related to the pilots’ new collective bargaining agreement among the pressures.

Express International

International was the faster-growing segment, led by export package and freight demand and stronger yields. Its operating margin remained below domestic and edged lower, as wage, purchased-transportation and fuel inflation absorbed much of the revenue growth.

Revenue and profit: Revenue grew 17% to $7.465 billion, while operating income increased 15% to $220 million; margin was 2.9% versus 3.0%.
Activity and pricing: International export package volume increased 8% and average daily freight pounds increased 15%; total average daily package volume fell 4%, reflecting an 11% decline in international domestic volume. Composite package yield rose 17% to $30.46 and composite freight yield rose 11% to $1.20 per pound.
Expense headwinds: Purchased transportation increased 19% to $1.893 billion, fuel expense rose 68% to $859 million and salaries and benefits rose 10% to $2.408 billion.

Portfolio and capital allocation

The quarter sits within a broader reorganization of FedEx’s portfolio and balance sheet. Freight is now a discontinued operation, Supply Chain has been sold, and FedEx has also committed capital to an InPost-related investment while continuing share repurchases.

Freight separation: The June 1 spin-off distributed 80.1% of FedEx Freight and left FedEx with a 19.9% stake. That stake was carried at $3.3 billion at September 30 after a $1.238 billion quarterly fair-value loss; FedEx expects to monetize the remainder within 12 months, subject to market conditions.
Debt tender and proceeds: FedEx used the approximately $4.1 billion dividend received from Freight, alongside cash, to tender for about $4.9 billion of debt principal, recognizing a $627 million pre-tax gain.
Supply Chain and InPost: FedEx completed the sale of FedEx Supply Chain to CMA CGM Group on October 1 for about $1.4 billion. Separately, it acquired a 37% interest in Lux TopCo for €2.2 billion, or $2.5 billion in the filing, in connection with its investment in InPost.
Shareholder returns and liquidity: FedEx repurchased $2.0 billion of shares, approximately 6.3 million shares, during June–September; the remaining authorization was $4.3 billion at September 30. Cash on hand was about $8.0 billion, including $2.7 billion held for customer tariff refunds.

Calendar 2026 outlook

FedEx lifted its full-year calendar outlook on the strength of operating results and continued execution of its network and cost programs. The adjusted EPS range is the cleaner indicator of the company’s operating forecast; reported EPS also reflects items that are difficult to predict, including future mark-to-market changes.

Revenue and adjusted EPS: Revenue growth is now expected to be about 12% year over year, up from about 11%; adjusted diluted EPS is forecast at $18.00–$18.60, versus the prior $16.90–$18.10.
GAAP EPS and tax: GAAP diluted EPS guidance is $35.30–$35.90, compared with the previous $16.55–$17.75 range, which excluded specified Freight-investment and debt-extinguishment impacts. The forecast excludes additional retirement-plan and Freight-investment mark-to-market adjustments, which FedEx says could materially affect reported results.
Investment and transformation: Capital spending guidance remains $3.9 billion and pension contributions remain $475 million. FedEx expects $1.0 billion of structural cost reductions by the end of calendar 2026; its announced international transformation programs are expected to yield about $220 million in annualized savings beginning in 2027.