FedEx (FDX) delivered a strong fiscal third quarter, blowing past Wall Street estimates on both revenue and earnings, and lifted its full-year outlook. The results gave investors a lot to like after a period of choppy stock performance.
FEDEX $FDX JUST REPORTED Q3 EARNINGS
Topline Performance
• Revenue: $24.0B vs $23.43B estProfitability
• Adjusted EPS: $5.25 vs $4.09 est
• Q3 Net Income: Included $99M Tax Benefit ($0.41 Per Diluted Share) From Certain Foreign Tax Loss CarryforwardsOutlook
• FY… pic.twitter.com/FyNJHcVUK6— WOLF (@WOLF_Financial) March 19, 2026
For the quarter, FedEx reported adjusted EPS of $5.25 against an expected $4.09. Revenue hit $24 billion, topping the $23.43 billion forecast. A year ago, the company posted EPS of $4.51 on $22.2 billion in sales.
Net income came in at $1.06 billion, or $4.41 per share, up from $909 million, or $3.76 per share, in the same quarter last year.
Adjusted operating income was $1.68 billion for the quarter, beating estimates of $1.39 billion by a wide margin.
Higher U.S. domestic volumes, increased pricing, and a strong peak shipping season were the main drivers of the beat. Volume growth is a key metric investors have been watching closely, given the multi-year slump in the freight market.
CEO Raj Subramaniam credited “disciplined operational execution, the resilience of our global network, and the accelerating impact of our advanced digital solutions” for the results.
FedEx lifted its full-year adjusted EPS forecast to $19.30–$20.10, up from the prior range of $17.80–$19.00. The new guidance implies Q4 EPS of around $5.80, compared to Wall Street’s current estimate of $5.93.
Revenue growth is now projected at 6% to 6.5% for fiscal 2026, ahead of analyst estimates of 5.6%.
The company also said cost savings from its “Network 2.0” initiative — focused on automation and AI-driven efficiency — are now expected to exceed $1 billion, up from the prior $1 billion target.
FedEx Freight, the company’s less-than-truckload division, remains on track to be spun off into a separate publicly traded company on June 1.
FedEx trades at around 16 times estimated 2026 earnings, while rival Old Dominion Freight Line trades at 35 times. Management is hoping the spinoff unlocks a higher valuation multiple for the freight business.
The stock was up roughly 22% year to date coming into Thursday’s session, even after a roughly 9% pullback following the onset of fighting in Iran.
Subramaniam told analysts the company expects “modest” headwinds from Middle East disruptions, describing the region as a “relatively small part” of total revenue.
FedEx is also in litigation seeking tariff recovery for customers following the Supreme Court ruling that struck down President Trump’s Liberation Day tariffs. The outcome of potential refunds remains unclear.
FDX rose about 10% in premarket trading Friday, reaching $392.50.
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