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FedEx reported revenue of $22.9 billion for the quarter ended Sept. 30, 2026, up from $20.4 billion a year earlier
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It raised its calendar 2026 outlook: revenue growth of about 12% and adjusted earnings per share of $18.00 to $18.60
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Parcel shipping rates will rise an average of 5.9% from Jan. 4, 2027
FedEx said higher package yields, greater package volume and structural cost cuts lifted its third-quarter results, partly offset by higher purchased transportation rates, wages and the effects of trade policy. The company reported adjusted operating income of $1.20 billion, a 5.3% margin, up from $1.03 billion a year earlier. Adjusted diluted earnings per share were $3.74, versus $2.93.
FedEx’s reported (GAAP) earnings per share were $1.21, held down by a $5.18 per-share loss on its stake in FedEx Freight. The loss was partly offset by a gain on debt extinguishment.
Express units improve
Adjusted operating income at Express U.S. Domestic rose to $972 million, a 6.6% margin, from $905 million, on better yields, volume, service mix and savings. At Express International, it rose to $297 million, a 3.9% margin, from $196 million, on higher base yields and export volume.
Freight spin-off and other deals
FedEx Freight was spun off on June 1, 2026. FedEx kept a 19.9% stake, valued at $3.3 billion at quarter-end, and booked a $1.2 billion loss on it. It also received a dividend of about $4.1 billion from Freight. FedEx used that and cash on hand to tender for about $4.9 billion of debt, producing a $627 million pre-tax adjusted gain. The sale of FedEx Supply Chain to CMA CGM, for about $1.4 billion, closed on Oct. 1. The company changed its fiscal year-end from May 31 to Dec. 31.
FedEx bought back $2.0 billion of its shares from June to September, and $4.3 billion remains under the 2026 authorization. Cash on hand was $8 billion, which includes about $2.7 billion of refunds of International Emergency Economic Powers Act (IEEPA) tariffs that FedEx is holding for customers.
Outlook raised
For calendar 2026, FedEx now expects revenue growth of about 12%, up from about 11%, and adjusted diluted earnings per share of $18.00 to $18.60, up from $16.90 to $18.10. It expects capital spending of $3.9 billion, unchanged.
READ: FedEx closes fiscal year ending May 31 with $25B Q4 revenue, up 13%
Chief executive Raj Subramaniam said FedEx is winning in high-value market segments while it optimizes its network. Interim chief financial officer Claude Russ tied the buyback to confidence in the company’s 2029 financial targets.
