Rear view of FedEx delivery truck with logo parked on a city street, Dogpatch neighborhood, San Francisco, California, February 25, 2026.
Smith/gado Collection | Stock Photos | fake images
Fedex On Thursday it reported strong fiscal third-quarter results that beat Wall Street expectations.
The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared to analyst estimates of a 5.6% increase.
FedEx shares are up about 9% in extended trading.
Here's how the company performed in the fiscal third quarter, compared to what analysts expected, according to LSEG:
- Earnings per share: $5.25 adjusted vs. $4.09 expected
- Revenue: $24 billion vs. $23.43 billion
For the quarter, FedEx reported adjusted operating income of $1.68 billion, beating estimates of $1.39 billion. It reported net income of $1.06 billion, or $4.41 per share, down from $909 million, or $3.76 per share, a year ago. Adjusted for derivative costs and other extraordinary items, FedEx posted earnings per share (EPS) of $5.25.
The company also raised its adjusted EPS expectations for fiscal 2026, now projecting earnings between $19.30 and $20.10 per share, compared to previous guidance of between $17.80 and $19 per share.
“The FedEx team delivered another quarter of strong financial results and excellent service for our customers, driven by disciplined operational execution, the resilience of our global network and the accelerated impact of our advanced digital solutions,” CEO Raj Subramaniam said in a statement.
The company previously said it expected roughly $1 billion in cost reductions from its “Network 2.0” initiative, which focuses on optimizing the efficiency of its package processes by leveraging automation and artificial intelligence. FedEx now expects those savings to exceed $1 billion.
FedEx said its freight business, FedEx Freight, remains on track to spin off into a separate publicly traded company on June 1.
Subramaniam said in a call with analysts that the company expects “modest” headwinds due to disruptions from the Iran war and that the Middle East is a “relatively small part” of total revenue.
