FedEx announced its quarterly earnings on Wednesday, surpassing Wall Street expectations for both revenue and earnings. Despite this positive performance, the company’s shares experienced a modest decline in extended trading hours.
For the quarter ending September 30, FedEx reported earnings per share of $3.74, adjusted for one-time items, compared to an expected $3.36. Revenue reached $22.86 billion, exceeding the $22.42 billion anticipated by analysts. However, net income for the quarter fell to $290 million, or $1.21 per share, down from $650 million, or $2.73 per share, during the same period last year.
This report is significant as it marks the first financial disclosures since FedEx realigned its fiscal year, shifting its end date from May 31 to December 31. Additionally, the company successfully spun out FedEx Freight into a separate publicly traded entity. FedEx’s express U.S. segment saw an increase in operating income, primarily due to higher package yields and volume.
CEO Raj Subramaniam noted that the company is excelling in high-value market segments and optimizing its operations, leading to an improved full-year outlook. FedEx now anticipates adjusted earnings per share for the year to be between $18 and $18.60, an increase from a prior forecast of $16.90 to $18.10. The company has also revised its revenue growth expectations for 2026, now predicting a 12% year-over-year increase instead of the previously forecasted 11%.
In a related management change, FedEx appointed former AutoZone executive Jamere Jackson as the new chief financial officer, effective November 30.
Why this story matters: Highlights FedEx’s solid performance and strategic adjustments.
Key takeaway: FedEx has raised its earnings forecast following strong quarterly results.
Opposing viewpoint: Some investors may be concerned about the drop in net income compared to last year.
