Rear view of a FedEx delivery truck with logo parked on the city street, Dogpatch neighborhood, San Francisco, California, February 25, 2026.
Smith/gado collection | Photo archives | Getty Images
FedEx announced strong third-quarter fiscal results on Thursday, beating 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 5.6% growth.
FedEx shares rose 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 versus $4.09 expected
- Income: $24 billion versus $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, compared with $909 million, or $3.76 per share, a year ago. After adjusting for derivative costs and other one-time items, FedEx reported EPS of $5.25.
The company also raised its adjusted EPS expectations for fiscal 2026, now forecasting 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 resiliency 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 cost reductions of approximately $1 billion from its “Network 2.0” initiative, which aims to optimize the efficiency of its packaging processes by leveraging automation and artificial intelligence. FedEx now expects these savings to exceed $1 billion.
FedEx said its freight business, FedEx Freight, was in the process of being spun off into a separate, publicly traded company on June 1.
Subramaniam said on a call with analysts that the company expects “modest” headwinds from war-related disruptions in Iran and that the Middle East represents a “relatively small share” of total revenue.