FedEx announced on Thursday that it achieved solid fiscal third-quarter results surpassing Wall Street’s predictions.
The firm also updated its forecast for fiscal 2026, estimating revenue growth of 6% to 6.5%, exceeding analyst expectations of a 5.6% increase.
Shares of FedEx increased approximately 9% in after-hours trading.
Below is an overview of the company’s fiscal third quarter performance compared to analyst forecasts, as per LSEG:
- Earnings per share: $5.25 adjusted vs. $4.09 anticipated
- Revenue: $24 billion vs. $23.43 billion
For the quarter, FedEx recorded an adjusted operating income of $1.68 billion, surpassing the projected $1.39 billion. It reported a net income of $1.06 billion, or $4.41 per share, up from $909 million, or $3.76 per share, from the same period last year. Adjusted for spin-off costs and other unique items, FedEx reported EPS of $5.25.
The company also revised its fiscal 2026 adjusted EPS projections, now estimating earnings between $19.30 and $20.10 per share, compared to prior guidance of between $17.80 and $19 per share.
“Team FedEx achieved another quarter marked by strong financial outcomes and exceptional service for our customers, due to disciplined operational management, the strength of our global network, and the heightened effect of our innovative digital solutions,” stated CEO Raj Subramaniam in a statement.
Previously, the company had indicated it anticipated around $1 billion in cost savings from its “Network 2.0” initiative aimed at enhancing the efficiency of its package operations by utilizing automation and artificial intelligence. FedEx now expects these savings to surpass $1 billion.
FedEx stated that its freight division, FedEx Freight, is on track to be separated into an independent publicly traded entity by June 1.
Subramaniam mentioned during a call with analysts that the company foresees “modest” challenges from disruptions stemming from the Iran conflict and indicated that the Middle East constitutes a “relatively small portion” of overall revenue.
