A FedEx delivery van on May 27, 2026 in London, England.
Peter Dazeley | fake images
Fedex on Tuesday it reported earnings that beat Wall Street expectations in terms of revenue and profits.
The earnings report marked the latest quarter to include the company's freight business, which was spun off into a separate, publicly traded company called FedEx Freight on June 1st. The company said FedEx Freight paid a cash dividend of approximately $4.1 billion to FedEx Corporation in connection with the spinoff.
FedEx shares fell about 6% in extended trading.
Here's how the company performed in its fiscal fourth quarter compared to what analysts expected, according to an LSEG survey:
- Earnings per share: Adjusted $6.31 vs. expected $5.96
- Revenue: $25.01 billion vs. $24.04 billion expected
For the period ended May 31, FedEx reported FedEx Express revenue of $21.57 billion, beating StreetAccount estimates of $20.75 billion. The company reported a 3% year-over-year increase in domestic volume and a 3% increase in US priority volume.
In the fiscal fourth quarter, FedEx reported net income of $1.6 billion, or $6.60 per share, compared with $1.65 billion, or $6.88 per share, in the same period a year earlier. Adjusting for one-time costs, including retirement plan adjustments and the spinoff, the company reported earnings per share of $6.31.
For the full fiscal year, FedEx reported revenue of $94.7 billion, up from $87.9 billion a year earlier.
“The momentum you're seeing in our business is proof that our strategy is working,” Chief Executive Raj Subramaniam said on a call with analysts. “It is translating into favorable financial results, including very strong free cash flow and FY26 results that far exceeded our initial FY26 outlook.”
The company also said it will now change the end of its fiscal year from May 31 to December 31, effective earlier this month.
For the full year, FedEx said it expects year-over-year revenue growth of 11% and adjusted diluted earnings per share of between $16.90 and $18.10.
FedEx saw fuel costs rise from $864 million last year to $1.43 billion this year, a 66% jump. Company executives said on the call with analysts that FedEx has not seen an impact on demand due to fuel prices.
The company also said it saw a 10% price increase in the United States.
