FedEx (NYSE:FDX) Posts Quarterly Earnings Results, Beats Expectations By $1.13 EPS

FedEx (NYSE:FDX) released its earnings results on Thursday. The shipping service provider reported $5.25 earnings per share for the quarter, topping analysts’ consensus estimates of $4.12 by $1.13, FiscalAI reports. FedEx had a return on equity of 16.63% and a net margin of 4.81%.The business had revenue of $24 billion for the quarter, compared to the consensus estimate of $23.44 billion. During the same period last year, the business earned $4.51 earnings per share. The firm’s revenue for the quarter was up 8.3% compared to the same quarter last year.

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

• Strong Q3 and upgraded guidance: Consolidated revenue rose 8% YoY and adjusted EPS grew 16%, prompting FedEx to raise FY2026 adjusted EPS guidance to $19.30–$20.10 and lift consolidated revenue growth to 6%–6.5%.
• Network 2.0 momentum: About 35% of eligible volume now flows through ~400 Network 2.0 facilities (targeting ~65% by next peak), with an expected $2 billion in cumulative savings by end of 2027 supporting improved peak profitability.
• FedEx Freight pressure and separation costs: Freight faced weak LTL demand (shipments down ~6%) with adjusted operating income down $127M, including roughly $60M of separation-related costs as the business prepares for a targeted June 1, 2026 spin-off.
• MD-11 grounding headwind: Grounding of the MD-11 fleet imposed a ~$120M adjusted operating income hit in Q3 and is expected to add up to ~$55M of headwind in Q4, despite operational mitigation efforts.
• Capital discipline and cash-flow focus: FedEx cut FY26 CapEx to no more than $4.1B (aircraft CapEx ? $1B), which—coupled with stronger operating results—supports upside to adjusted free cash flow and the company’s $6B adjusted FCF target for 2029 (ex-Freight).

FedEx Price Performance

FedEx stock opened at $355.15 on Friday. The business has a 50 day simple moving average of $350.29 and a 200 day simple moving average of $289.94. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.27 and a quick ratio of 1.23. The company has a market capitalization of $83.50 billion, a PE ratio of 19.58, a price-to-earnings-growth ratio of 1.66 and a beta of 1.29. FedEx has a one year low of $194.29 and a one year high of $392.86.

FedEx Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Monday, March 9th will be given a dividend of $1.45 per share. This represents a $5.80 annualized dividend and a dividend yield of 1.6%. The ex-dividend date is Monday, March 9th. FedEx’s dividend payout ratio (DPR) is 31.97%.

Key Headlines Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: Q3 beat and guidance lift — FedEx posted a double beat (revenue and EPS) and raised FY profit guidance to roughly $19.30–$20.10, a clear near?term catalyst for the rally. FedEx shares surge as investors cheer resilient demand, higher profit forecast
• Positive Sentiment: Resilient demand and pricing — Management said global demand is holding and the company’s fuel surcharge is offsetting higher oil costs for now, supporting margin durability. FedEx sees global demand holding amid Iran war, raises profit outlook
• Positive Sentiment: Operational execution and strategic moves — Execs highlighted strong peak?season profitability, cost discipline and that the planned freight spin?off remains on track, which investors view as value?enhancing. FedEx Tops Q3 Estimates, Freight Spin-Off Remains On Track
• Neutral Sentiment: Broader market context — Positive FedEx news is arriving amid mixed premarket futures and macro volatility (triple witching, Middle East developments), which can amplify intraday moves but isn’t FedEx?specific. Stock Market Today: S&P 500, Dow Futures Down Ahead Of ‘Triple Witching’
• Negative Sentiment: Safety probe — The NTSB is investigating a close call between a FedEx and an Alaska Airlines jet at Newark; any operational safety concerns could weigh on sentiment if they lead to regulatory scrutiny or costs. NTSB investigating close call between FedEx, Alaska Airlines jets
• Negative Sentiment: Geopolitical and fuel?cost risk ahead — Management’s outlook assumes no further major disruptions; sustained oil >\$100 or escalation in the Middle East could push costs higher and dent volume if customers pull back. FedEx is getting more upbeat about the year — despite surging fuel costs

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of the stock. State Street Corp boosted its stake in shares of FedEx by 4.2% in the 4th quarter. State Street Corp now owns 9,521,691 shares of the shipping service provider’s stock valued at $2,763,824,000 after purchasing an additional 382,848 shares in the last quarter. Invesco Ltd. increased its position in shares of FedEx by 3.1% during the 3rd quarter. Invesco Ltd. now owns 3,618,898 shares of the shipping service provider’s stock worth $853,372,000 after purchasing an additional 108,426 shares in the last quarter. AQR Capital Management LLC lifted its holdings in FedEx by 6.9% during the 4th quarter. AQR Capital Management LLC now owns 2,923,679 shares of the shipping service provider’s stock valued at $844,534,000 after purchasing an additional 189,774 shares during the last quarter. Dimensional Fund Advisors LP lifted its holdings in FedEx by 2.8% during the 4th quarter. Dimensional Fund Advisors LP now owns 2,577,706 shares of the shipping service provider’s stock valued at $744,635,000 after purchasing an additional 70,141 shares during the last quarter. Finally, Hotchkis & Wiley Capital Management LLC boosted its position in FedEx by 5.8% in the third quarter. Hotchkis & Wiley Capital Management LLC now owns 2,235,689 shares of the shipping service provider’s stock valued at $527,198,000 after buying an additional 123,190 shares in the last quarter. 84.47% of the stock is currently owned by institutional investors and hedge funds.

Analysts Set New Price Targets

FDX has been the subject of a number of research reports. Argus raised their price objective on FedEx from $250.00 to $350.00 and gave the stock a “buy” rating in a research report on Wednesday, January 21st. Raymond James Financial upped their target price on FedEx from $305.00 to $410.00 and gave the company an “outperform” rating in a research note on Friday, February 13th. Weiss Ratings reaffirmed a “buy (b-)” rating on shares of FedEx in a research report on Monday, December 29th. Jefferies Financial Group lifted their price target on shares of FedEx from $425.00 to $450.00 and gave the stock a “buy” rating in a research note on Tuesday, March 3rd. Finally, Susquehanna lowered their price target on shares of FedEx from $345.00 to $340.00 in a report on Tuesday, December 23rd. Two research analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, eight have issued a Hold rating and three have issued a Sell rating to the company’s stock. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and an average target price of $371.19.

FedEx Company Profile

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.