News
Earnings · Guidance · Logistics · Spin-Off
FedEx Corporation (FDX) reported strong fiscal third-quarter 2026 results, surpassing Zacks Consensus Estimates for both earnings and revenues, and subsequently raised its full-year fiscal 2026 diluted EPS guidance to $19.30-$20.10.
Quarterly earnings, excluding non-recurring items, were $5.25 per share, beating the Zacks Consensus Estimate of $4.14 and improving 16.4% year-over-year. Revenues reached $24.0 billion, exceeding the $23.5 billion estimate and growing 8.3% from the prior year.
For fiscal 2026, FedEx now expects revenue growth in the range of 6-6.5% (up from a prior view of 5-6%) and adjusted diluted EPS between $19.30 and $20.10 (up from $17.80-$19.00). Operating income increased 4% to $1.35 billion, driven by strength in U.S. domestic and International Priority package yields, continued structural cost reductions, and higher U.S. domestic package volume, as stated by CEO Raj Subramaniam.
The planned spin-off of FedEx Freight is on track for June 1, 2026, with FedEx Freight having issued $3.7 billion in senior notes. FedEx also reduced its capital spending forecast for fiscal 2026 to $4.1 billion (from $4.5 billion) while increasing anticipated permanent cost reductions to over $1 billion.
