FedEx (NYSE:FDX) Posts Quarterly Earnings Results, Beats Expectations By $0.40 EPS

FedEx (NYSE:FDX) released its quarterly earnings results on Wednesday. The shipping service provider reported $3.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.40, Zacks reports. The company had revenue of $22.93 billion for the quarter, compared to analysts’ expectations of $22.73 billion. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The firm’s revenue for the quarter was up 12.3% compared to the same quarter last year. During the same period last year, the company earned $3.83 EPS.

Here are the key takeaways from FedEx’s conference call:

• FedEx raised its CY 2026 outlook to adjusted EPS of $18.00–$18.60 and approximately $4 billion in adjusted free cash flow, implying roughly 23% year-over-year EPS growth at the midpoint.
• Third-quarter revenue increased 12% and adjusted operating income rose 16%, supported by strong base yields, B2B and premium B2C demand, international export growth, and a 52% increase in international adjusted operating income.
• Network 2.0 is nearing 65% of eligible volume across roughly 630 optimized stations, with more than 260 stations closed; management continues to target nearly $1 billion of savings in 2026 and cumulative savings of $2 billion by the end of 2027.
• The company repurchased $2 billion of stock since June and retains $4.3 billion of authorization, while also expecting to monetize its 19.9% FedEx Freight stake within 24 months of the spin-off to support shareholder returns.
• Fourth-quarter profitability faces transitory pressure from higher over-the-road transportation rates, the new pilot agreement, aircraft maintenance costs, fuel impacts, and peak-season expenses; management expects U.S. domestic operating margin to decline moderately in Q4 before improving in 2027.

FedEx Trading Down 0.7%

Shares of NYSE FDX traded down $2.10 during midday trading on Wednesday, hitting $305.00. The stock had a trading volume of 1,857,403 shares, compared to its average volume of 1,988,136. The company has a quick ratio of 1.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.74. FedEx has a 1-year low of $198.00 and a 1-year high of $345.36. The company has a market capitalization of $72.19 billion, a price-to-earnings ratio of 16.48, a PEG ratio of 1.53 and a beta of 1.28. The company has a fifty day moving average price of $304.96 and a 200 day moving average price of $337.16.

FedEx Dividend Announcement

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Stockholders of record on Monday, September 14th were issued a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date was Monday, September 14th. FedEx’s dividend payout ratio (DPR) is 26.36%.

Analysts Set New Price Targets

A number of brokerages have recently commented on FDX. Evercore lifted their price objective on FedEx from $350.00 to $351.00 in a research report on Monday, September 28th. BNP Paribas Exane lifted their price target on FedEx from $269.80 to $300.00 and gave the company a “neutral” rating in a report on Wednesday, September 30th. Sanford C. Bernstein set a $377.00 price objective on shares of FedEx in a research note on Monday. Raymond James Financial reiterated an “outperform” rating on shares of FedEx in a report on Thursday, October 15th. Finally, JPMorgan Chase & Co. cut their price objective on shares of FedEx from $400.00 to $399.00 and set an “overweight” rating on the stock in a report on Monday, October 5th. One analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have assigned a Hold rating and two have given a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus target price of $362.60.

Key Headlines Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx reported quarterly revenue of approximately $22.9 billion, ahead of the roughly $22.73 billion consensus estimate. Adjusted earnings per share also beat expectations, supported by higher shipping rates, stronger package volumes and ongoing cost improvements. Earnings Flash: FedEx Reports Q3 Revenue
• Positive Sentiment: Management raised its full-year outlook, including approximately 12% revenue growth and adjusted EPS guidance of about $18.60. The higher forecast gives investors more confidence heading into the critical holiday shipping season. FedEx Hikes Profit Guidance
• Positive Sentiment: FedEx repurchased approximately $2 billion of stock during the period and still has about $4.3 billion authorized for future buybacks, potentially supporting per-share results and shareholder returns. FedEx Revenue Growth and Buybacks
• Neutral Sentiment: FedEx will appoint Jamere Jackson as chief financial officer on November 30. His experience could improve capital allocation and cost controls, but the leadership transition is unlikely to be the main near-term driver of the stock. FedEx Names a New CFO
• Negative Sentiment: Reported GAAP results were substantially weaker than adjusted figures. A roughly $1.2 billion loss related to the FedEx Freight investment contributed to sharply lower net income and diluted EPS, raising concerns about the quality and sustainability of earnings. FedEx Stock Falls on Q3 Earnings
• Negative Sentiment: Investors also appeared concerned that operating-margin performance did not match the headline adjusted earnings beat, while wage inflation, pilot-contract costs, fuel expenses and stranded costs remain risks. Those concerns outweighed the positive guidance in the initial market reaction. FedEx Falls Despite Beating Earnings

FedEx Company Profile

FedEx Corporation (NYSE: FDX) is a global transportation, e-commerce and business services company headquartered in Memphis, Tennessee. Through its operating companies, FedEx provides time-definite express delivery, ground shipping, freight transportation, customs brokerage, logistics and supply chain services for businesses, governments and consumers.

The company’s services include domestic and international package delivery, less-than-truckload freight transportation, warehousing, fulfillment, supply chain management and specialized logistics solutions.