FedEx stock gains outlook after quarterly earnings beat estimates

Published on 10/30/2026 at 11:16 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

FedEx stock followed a stronger quarter with a higher 2026 earnings outlook. Revenue growth guidance also moved above the prior forecast.

Results Lift Full-Year Outlook

FedEx beat quarterly revenue and adjusted earnings expectations for the period ended September 30.
Management raised adjusted 2026 earnings guidance and lifted its revenue-growth forecast to 12 percent.
The company completed 2 billion US dollars in share repurchases during the quarter.

FedEx Corp., US31428X1063, Illustration mit AI erstellt.

FedEx reported stronger-than-expected results for the quarter ended September 30 on Wednesday, October 28, and raised its full-year calendar 2026 outlook. The announcement, carried by FedEx Corp.'s company announcement, showed revenue of 22.9 billion US dollars, up from 20.4 billion US dollars a year earlier.

Quarterly Earnings Beat Expectations

Adjusted diluted earnings per share reached 3.74 US dollars, compared with 2.93 US dollars in the prior-year quarter. Adjusted net income rose to 896 million US dollars from 693 million US dollars. Reported net income declined to 290 million US dollars from 645 million US dollars, mainly reflecting a 1.2 billion US dollar loss on FedEx's retained investment in FedEx Freight after the spin-off.

Adjusted operating income increased to 1.20 billion US dollars from 1.03 billion US dollars, while adjusted operating margin widened to 5.3 percent from 5.1 percent. FedEx said higher package yields, stronger volumes and structural cost reductions supported the result. Higher purchased transportation rates, wage costs, variable compensation and global trade policy effects partly offset those gains.

Higher Guidance For Calendar 2026

FedEx lifted its adjusted diluted earnings outlook to 18.00 to 18.60 US dollars per share from 16.90 to 18.10 US dollars previously. The company also raised its calendar 2026 revenue-growth forecast to approximately 12 percent from approximately 11 percent. The forecast includes the effect of fuel-related surcharge revenue.

The company expects capital spending of 3.9 billion US dollars and pension contributions of 475 million US dollars. Its adjusted effective tax-rate forecast moved to approximately 22.5 percent from approximately 23 percent. FedEx said the outlook assumes its current economic and fuel-price expectations and excludes additional adverse geopolitical or trade developments.

Portfolio Changes And Capital Returns

FedEx completed the spin-off of FedEx Freight on June 1 and retained a 19.9 percent stake. It also completed the sale of FedEx Supply Chain to CMA CGM Group on October 1 for approximately 1.4 billion US dollars. The company repurchased 2.0 billion US dollars of its shares between June and September, with 4.3 billion US dollars remaining under its 2026 authorization.

FedEx plans an average 5.9 percent increase in parcel shipping rates from January 4, 2027. That pricing action, network optimization and continued cost reductions will be key factors for investors assessing whether profit growth can continue beyond the current guidance period.

The real-time quote of FedEx stock showed FedEx stock trading at 275.00 euros on Lang & Schwarz at 11:07 CET on Friday, October 30, 0.97 percent below the Xetra close of Thursday, October 29.

US equities were set to trade against the backdrop of the S&P 500 market environment.

For more company developments, see more news and analyses on FedEx stock.