A FedEx delivery van on May 27, 2026 in London, England.
Peter Dazeley | Getty Images
FedEx Tuesday’s results were better than Wall Street’s expectations in terms of revenue and net income.
The earnings report marks the latest quarter to include the company’s freight operations, which spun off into a separate, publicly traded company called FedEx Freight June 1st. The company said FedEx Freight paid a cash dividend of approximately $4.1 billion to FedEx Corporation as part of 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: $6.31 adjusted vs. $5.96 expected
- Income: $25.01 billion versus $24.04 billion expected
For the period ended May 31, FedEx reported FedEx Express revenue of $21.57 billion, beating StreetAccount’s estimates of $20.75 billion. The company reported a 3% year-over-year increase in domestic volume and a 3% increase in U.S. 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, a year earlier. Accounting for one-time costs, including spin-off and pension adjustments, 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 the year before.
“The momentum you’re seeing in our business is proof that our strategy is working,” CEO Raj Subramaniam said on a call with analysts. “This translates into favorable financial results, including very strong free cash flow and FY26 results that significantly exceeded our initial FY26 outlook.”
The company also announced that it will now change its fiscal year end 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 in the range of $16.90 to $18.10.
FedEx saw its fuel costs rise from $864 million last year to $1.43 billion this year, an increase of 66%. Company executives said on the call with analysts that FedEx has not seen an impact on demand from fuel prices.
The company also said it saw its prices increase by 10% in the United States.