{"id":1014825,"date":"2026-10-28T18:10:31","date_gmt":"2026-10-28T22:10:31","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-strong-third-quarter-results-2\/"},"modified":"2026-10-28T18:10:31","modified_gmt":"2026-10-28T22:10:31","slug":"fedex-reports-strong-third-quarter-results-2","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/fedex-reports-strong-third-quarter-results-2\/","title":{"rendered":"FedEx Reports Strong Third Quarter Results"},"content":{"rendered":"

<\/p>\n

FedEx Reports Strong Third Quarter Results<\/b><\/p>\n

Completed $2 Billion of Share Repurchases in June-September Period<\/i><\/p>\n

Raises Full-year Calendar 2026 Earnings Outlook<\/i><\/p>\n

MEMPHIS, Tenn.–(BUSINESS WIRE<\/a>)–
\nFedEx Corp. (NYSE: FDX) today reported the following consolidated results for the quarter ended September 30 (adjusted measures exclude the items listed below):<\/p>\n\n\n\n\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

(Continuing Operations)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

September 30, 2026<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

September 30, 2025<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
<\/b>(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
<\/b>(non-GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

As Reported
\n
<\/b>(GAAP)<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

Adjusted
\n
<\/b>(non-GAAP)<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue<\/p>\n<\/td>\n

\n

\n$22.9 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$22.9 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$20.4 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$20.4 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating income<\/p>\n<\/td>\n

\n

\n$1.07 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.20 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.97 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$1.03 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nOperating margin<\/p>\n<\/td>\n

\n

\n4.7%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n5.3%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n4.8%<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n5.1%<\/p>\n<\/td>\n<\/tr>\n

\n

\nNet income<\/p>\n<\/td>\n

\n

\n$0.29 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.90 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.65 billion<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$0.69 billion<\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted EPS<\/p>\n<\/td>\n

\n

\n$1.21<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$3.74<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$2.73<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$2.93<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nThis year\u2019s and last year\u2019s quarterly consolidated results have been adjusted for:<\/p>\n\n\n\n\n\n\n
\n

\n\u00a0<\/p>\n<\/td>\n

\n

Three Months Ended<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

Impact per diluted share<\/i><\/p>\n<\/td>\n

\n

September
\n
30, 2026<\/b><\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

September
\n
30, 2025<\/b><\/p>\n<\/td>\n<\/tr>\n

\n

\nLoss on short-term investment<\/p>\n<\/td>\n

\n

\n$5.18<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n$ \u2014<\/p>\n<\/td>\n<\/tr>\n

\n

\nGain on extinguishment of debt<\/p>\n<\/td>\n

\n

\n(1.97)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u2014<\/p>\n<\/td>\n<\/tr>\n

\n

\nRestructuring, exit and other costs<\/p>\n<\/td>\n

\n

\n(0.68)<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n0.20<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nConsolidated operating results improved in the third quarter, driven by increased package base yields, higher package volumes, and continued structural cost reductions from business optimization initiatives. These factors were partially offset by increased purchased transportation rates, higher wage rates and variable compensation expenses, and the financial impact of global trade policy changes.<\/p>\n

\n\u201cAs our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook,\u201d said Raj Subramaniam, FedEx Corp. president and chief executive officer. \u201cAs we advance our transformation, we remain committed to disciplined operational execution to reduce our cost-to-serve while focusing on profitable growth. We have the right strategy in place to continue to be the world\u2019s premier B2B parcel and air freight provider, leverage our digital insights to unlock new markets, and use disciplined capital allocation to create additional stockholder value.\u201d<\/p>\n

\nExpress U.S. Domestic segment operating income increased during the quarter, driven by higher package yields, increased package volume, improved service mix, and continued cost savings from transformation initiatives. These factors were partially offset by increased purchased transportation rates and higher salaries and benefits expenses.<\/p>\n

\nExpress International segment operating results increased during the quarter, primarily due to increased base yields, higher international export volume, and increased freight weight. These factors were partially offset by higher wage rates, increased purchased transportation rates, and the financial impact of global trade policy changes.<\/p>\n

FedEx Freight Spin-Off<\/span><\/b><\/p>\n

\nFedEx completed the spin-off of FedEx Freight on June 1, 2026, retaining a 19.9% ownership interest in FedEx Freight. FedEx recognized a loss of $1.2 billion during the quarter within \u201cGain\/(loss) on short-term investment\u201d on the income statement. The carrying value of this equity security totaled $3.3 billion at September 30, 2026 and is recorded within \u201cShort-term investment\u201d in the condensed consolidated balance sheets.<\/p>\n

\nFedEx utilized cash proceeds from the approximately $4.1 billion dividend received from FedEx Freight following the spin-off, as well as cash on hand, to fund cash tender offers for approximately $4.9 billion aggregate principal amount of outstanding debt securities, resulting in a non-GAAP, pre-tax gain of $627 million.<\/p>\n

FedEx Supply Chain Sale<\/span><\/b><\/p>\n

\nOn October 1, 2026, FedEx completed the sale of its subsidiary FedEx Supply Chain to CMA CGM Group for a purchase price of approximately $1.4 billion. The transaction represents another important step in the ongoing transformation of FedEx, advancing its strategy to simplify its portfolio, sharpen its focus, and concentrate resources on the areas where the company is best positioned to create long-term value.<\/p>\n

2027 Rate Increases<\/span><\/b><\/p>\n

\nAs previously announced, effective January 4, 2027, FedEx parcel shipping rates will increase by an average of 5.9%. Details related to these and additional changes to rates and surcharges are available at fedex.com\/en-us\/shipping\/rate-changes.html<\/a><\/span>.<\/p>\n

Cash and Capital Returns<\/span><\/b><\/p>\n

\nCash on-hand as of September 30, 2026 was $8 billion, which included approximately $2.7 billion in IEEPA tariff refunds held for refund to customers.<\/p>\n

\nFedEx completed $2.0 billion in stock repurchases via open market and accelerated share repurchase transactions in June through September. Approximately 6.3 million shares were repurchased, with the decrease in outstanding shares benefiting third quarter results by $0.02 per diluted share. FedEx will continue to be opportunistic with stock repurchases. As of September 30, 2026, $4.3 billion remained available for repurchases under the company\u2019s 2026 stock repurchase authorization.<\/p>\n

\n\u201cOur solid third quarter results and higher 2026 financial outlook reflect the focused execution of our strategy, demonstrating momentum toward our 2029 financial targets,\u201d said Claude Russ, FedEx Corp. enterprise vice president and interim chief financial officer. \u201cOur decision to repurchase $2 billion of FedEx stock displays our conviction in achieving our 2029 financial targets and our commitment to deploy our strong free cash flow to increase stockholder returns.\u201d<\/p>\n

Outlook<\/span><\/b><\/p>\n

\nFor calendar year 2026, FedEx is revising its forecast as follows:<\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
\n

Financial Metric<\/span><\/p>\n<\/td>\n

\n

Forecast <\/span>Value<\/span>(1)<\/sup><\/p>\n<\/td>\n

\n

Additional Details & Exclusions<\/span><\/p>\n<\/td>\n<\/tr>\n

\n

\nRevenue Growth<\/p>\n<\/td>\n

\n

\n~12% YoY<\/p>\n<\/td>\n

\n

\nCompared to the prior forecast of ~11%.<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nDiluted EPS<\/p>\n

\n(Continuing Operations)<\/p>\n<\/td>\n

\n

\n$35.30 to $35.90<\/p>\n<\/td>\n

\n

\nCompared to the prior forecast of $16.55 to $17.75 per diluted share, which excluded impacts related to MTM accounting for the FedEx Freight investment and gain on extinguishment of debt. Prior to additional CY26 MTM adjustments for retirement plan accounting.<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nAdjusted Diluted EPS<\/p>\n

\n(Continuing Operations)<\/p>\n<\/td>\n

\n

\n$18.00 to $18.60<\/p>\n<\/td>\n

\n

\nCompared to the prior forecast of $16.90 to $18.10 per diluted share. Also excludes MTM adjustments for retirement plan accounting, adjustments related to MTM accounting for the FedEx Freight investment, gain on extinguishment of debt, and restructuring, exit and other costs.<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nEffective Tax Rate<\/p>\n

\n(ETR)<\/p>\n<\/td>\n

\n

\n~22.5%<\/p>\n<\/td>\n

\n

\nCompared to the prior forecast of ~23%. Prior to MTM adjustments for retirement plan accounting, adjustments related to MTM accounting for the FedEx Freight investment, and a $263 million deferred income tax benefit on FedEx Supply Chain basis difference.<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nPension Contributions<\/p>\n<\/td>\n

\n

\n$475 million<\/p>\n<\/td>\n

\n

\nUnchanged from the prior forecast.<\/p>\n<\/td>\n<\/tr>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n

\n

\n\u00a0<\/p>\n<\/td>\n<\/tr>\n

\n

\nCapital Spending<\/p>\n<\/td>\n

\n

\n$3.9 billion<\/p>\n<\/td>\n

\n

\nUnchanged from the prior forecast. Prioritizes investments in network optimization and efficiency improvement, including fleet and facility modernization and automation.<\/p>\n<\/td>\n<\/tr>\n

\n

(1) <\/sup>As of October 28, 2026<\/p>\n<\/td>\n<\/tr>\n<\/table>\n

\nThese forecasts assume FedEx\u2019s current economic forecast and fuel price expectations, and no additional adverse economic, geopolitical, or international trade-related developments. FedEx\u2019s ETR and EPS forecasts are based on current law and related regulations and guidance.<\/p>\n

Corporate Overview<\/span><\/b><\/p>\n

\nFedEx Corp. (NYSE: FDX) provides customers and businesses worldwide with a broad portfolio of transportation, e-commerce and business services. With annual revenue of $90 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<\/a><\/span>.<\/p>\n

\nAdditional information and operating data are contained in the company\u2019s annual report, Form 10-K, Form 10-Qs, Form 8-Ks and Statistical Books. These materials, as well as a webcast of the earnings release conference call to be held at 5:30 p.m. EDT on October 28, are available on the company\u2019s website at investors.fedex.com<\/a><\/span>. A replay of the conference call webcast will be posted on our website following the call.<\/p>\n

\nThe Investor Relations page of our website, investors.fedex.com<\/a><\/span>, contains a significant amount of information about FedEx, including our SEC filings and financial and other information for investors. The information that we post on our Investor Relations website could be deemed to be material information. We encourage investors, the media and others interested in the company to visit this website from time to time, as information is updated and new information is posted.<\/p>\n

\nCertain statements in this press release may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, such as statements regarding expected cost savings, future financial targets, business strategies, management\u2019s views with respect to future events and financial performance, and the assumptions underlying such expected cost savings, targets, strategies, and statements. Forward-looking statements include those preceded by, followed by or that include the words \u201cwill,\u201d \u201cmay,\u201d \u201ccould,\u201d \u201cwould,\u201d \u201cshould,\u201d \u201cbelieves,\u201d \u201cexpects,\u201d \u201cforecasts,\u201d \u201canticipates,\u201d \u201cplans,\u201d \u201cestimates,\u201d \u201ctargets,\u201d \u201cprojects,\u201d \u201cintends,\u201d \u201cdetermined to,\u201d or similar expressions. Such forward-looking statements are subject to risks, uncertainties and other factors which could cause actual results to differ materially from historical experience or from future results expressed or implied by such forward-looking statements. Potential risks and uncertainties include, but are not limited to, economic conditions in the global markets in which we operate; uncertainty and additional volatility in the global trade environment; our ability to successfully implement our business strategies and global transformation program and network optimization initiatives, including Network 2.0 and Tricolor, effectively respond to changes in market dynamics, and achieve the anticipated benefits of such strategies and actions; our ability to achieve our cost reduction initiatives and financial performance goals, including our 2029 financial performance targets; our ability to achieve the anticipated benefits of the tax-free full separation of the FedEx Freight business into a new publicly traded company (the \u201cFedEx Freight Spin-Off\u201d); the possibility of disruption, including changes to existing business relationships, disputes, litigation, or unanticipated costs in connection with the FedEx Freight Spin-Off; the timing and amount of any costs or benefits or any specific outcome, transaction, or change (of which there can be no assurance), or the terms, timing, and structure thereof, related to our global transformation program and other ongoing reviews and initiatives; a significant data breach or other disruption to our technology infrastructure; damage to our reputation or loss of brand equity; our ability to meet our labor and purchased transportation needs while controlling related costs; failure of third-party service providers to perform as expected, or disruptions in our relationships with those providers or their provision of services to FedEx; the effect of any international conflicts or terrorist activities, including as a result of the current conflicts between Russia and Ukraine and in the Middle East; evolving or new U.S. domestic or international laws and government regulations, policies, and actions, including regulatory and\/or legal compliance requirements that can affect our ability to efficiently or fully utilize our aircraft; changes in fuel prices or currency exchange rates, including significant increases in fuel prices as a result of the ongoing conflicts between Russia and Ukraine and in the Middle East and other geopolitical and regulatory developments; the effect of intense competition; our ability to match capacity to shifting volume levels; an increase in self-insurance accruals and expenses; failure to receive or collect expected insurance coverage; loss or delay in the collection of accounts receivable, including those related to tariffs in light of recent judicial rulings; the effect of technology developments, including autonomous technology and artificial intelligence; our ability to effectively operate, integrate, leverage, and grow acquired businesses and complete and realize the anticipated benefits of acquisitions and other strategic transactions including FedEx’s investment in InPost, as a consortium member, and related commercial agreements; noncash impairment charges related to our goodwill and certain deferred tax assets; the future rate of e-commerce growth; future guidance, regulations, interpretations, challenges, or judicial decisions related to tariffs and our tax positions; labor-related disruptions; legal challenges or changes related to service providers contracted to conduct certain linehaul and pickup-and-delivery operations and the drivers providing services on their behalf and the coverage of U.S. employees at Federal Express Corporation under the Railway Labor Act of 1926, as amended; our ability to quickly and effectively restore operations following adverse weather or a localized disaster or disturbance in a key geography; the effects of a widespread outbreak of an illness or any other communicable disease or public health crises; any liability resulting from and the costs of defending against litigation, including refunds of tariffs; our ability to achieve or demonstrate progress on our goal of carbon-neutral operations by 2040; successful completion of future stock repurchases; and other factors which can be found in FedEx Corp.\u2019s and its subsidiaries\u2019 press releases and FedEx Corp.\u2019s filings with the SEC, including our Annual Report on Form 10-K for the fiscal year ended May 31, 2026 and subsequent Quarterly Reports on Form 10-Q. Any forward-looking statement speaks only as of the date on which it is made. We do not undertake or assume any obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.<\/p>\n

\nThe financial section of this release is provided on the company’s website at investors.fedex.com<\/a><\/p>\n

RECONCILIATIONS OF NON-GAAP FINANCIAL MEASURES
\n
<\/b>TO GAAP FINANCIAL MEASURES<\/b><\/p>\n

Results for the three months ended September 30, 2026 and 2025<\/span><\/b><\/p>\n

\nThe company reports its financial results in accordance with accounting principles generally accepted in the United States (\u201cGAAP\u201d or \u201creported\u201d). We have supplemented the reporting of our financial information determined in accordance with GAAP with certain non-GAAP (or \u201cadjusted\u201d) financial measures, including our adjusted consolidated operating income and margin, income taxes, net income and diluted earnings per share, adjusted Express U.S. Domestic segment operating income and margin, and adjusted Express International segment operating income and margin for the 3-months ended September 30, 2026 and 2025. These financial measures are based on continuing operations and have been adjusted to exclude the effects of the following items (as applicable):<\/p>\n