FedEx Beats Estimates, Raises Full-Year Outlook on Strong Results

FedEx reported stronger-than-expected fiscal third-quarter results on Thursday and raised its full-year 2026 guidance, driven by improved operational performance and cost efficiencies.

The logistics company posted adjusted earnings per share of $5.25, exceeding analyst expectations of $4.09, while revenue came in at $24 billion, above forecasts of $23.43 billion, according to market estimates.

FedEx reported adjusted operating income of $1.68 billion, surpassing expectations of $1.39 billion. Net income rose to $1.06 billion, or $4.41 per share, compared with $909 million, or $3.76 per share, in the same period a year earlier.

Following the results, FedEx shares rose about 9% in extended trading.

The company raised its fiscal 2026 revenue growth outlook to 6% to 6.5%, above prior estimates. It also increased its adjusted earnings guidance to between $19.30 and $20.10 per share, compared with earlier projections of $17.80 to $19.00.

CEO Raj Subramaniam said the results were supported by disciplined execution, the strength of FedEx’s global network, and continued progress in digital and automation initiatives.

FedEx said its “Network 2.0” program, aimed at improving efficiency through automation and artificial intelligence, is now expected to deliver cost savings exceeding $1 billion.

The company added that its freight division, FedEx Freight, remains on track to be spun off into a separate publicly traded company on June 1.

FedEx also noted that disruptions linked to the Iran war are expected to have a modest impact, with the Middle East accounting for a relatively small share of its overall revenue.