FedEx (NYSE:FDX) Announces Quarterly Earnings Results, Beats Expectations By $0.80 EPS

FedEx (NYSE:FDX) posted its quarterly earnings data on Thursday. The shipping service provider reported $4.82 earnings per share for the quarter, beating analysts’ consensus estimates of $4.02 by $0.80, Zacks reports. The business had revenue of $23.47 billion for the quarter, compared to analysts’ expectations of $22.79 billion. FedEx had a net margin of 4.65% and a return on equity of 16.33%. The business’s revenue was up 6.8% compared to the same quarter last year. During the same quarter in the previous year, the business posted $4.05 earnings per share. FedEx updated its FY 2026 guidance to 17.800-19.000 EPS.

Here are the key takeaways from FedEx’s conference call:

• FedEx delivered a strong Q2 with 7% revenue growth and adjusted EPS up 19%, and management raised FY‑26 adjusted EPS guidance to $17.80–$19.00, citing yield strength and margin expansion.
• The unexpected MD‑11 grounding cut about 4% of global cargo capacity pre‑mitigation and pressured Q2 adjusted operating income (~$25M), with substantially higher incremental costs expected in Q3 and aircraft return targeted in Q4.
• FedEx Freight remains pressured by lower shipments — Q2 adjusted operating income fell and management now expects FY‑26 Freight revenue to be roughly flat to slightly down, with a ~<$300M hit to adjusted operating income (including separation-related costs).
• The planned spin‑off of FedEx Freight is on track for June 1, 2026 (Form 10 to be public in January), new Freight leadership in place, and FedEx expects the separation to unlock value while retaining up to 19.9% of shares temporarily.
• Management highlighted tangible progress on transformation and digital monetization — ~24% of volume runs through Network 2.0 optimized sites, they remain on track for ~$1B in transformation savings, launched a global AI program, and announced a Logistics Intelligence collaboration with ServiceNow.

FedEx Price Performance

NYSE:FDX traded up $5.41 during trading hours on Thursday, reaching $287.62. 3,963,407 shares of the company were exchanged, compared to its average volume of 1,924,242. The company has a current ratio of 1.25, a quick ratio of 1.21 and a debt-to-equity ratio of 0.73. The firm has a market cap of $67.87 billion, a PE ratio of 16.79, a price-to-earnings-growth ratio of 1.46 and a beta of 1.32. FedEx has a twelve month low of $194.29 and a twelve month high of $295.24. The stock’s 50-day moving average is $260.04 and its 200-day moving average is $240.42.

FedEx Dividend Announcement

The firm also recently announced a quarterly dividend, which will be paid on Tuesday, January 6th. Stockholders of record on Monday, December 15th will be paid a dividend of $1.45 per share. This represents a $5.80 annualized dividend and a dividend yield of 2.0%. The ex-dividend date of this dividend is Monday, December 15th. FedEx’s dividend payout ratio is presently 33.86%.

Analyst Upgrades and Downgrades

FDX has been the subject of a number of recent research reports. Barclays boosted their target price on shares of FedEx from $320.00 to $360.00 and gave the stock an “overweight” rating in a report on Tuesday. Wells Fargo & Company boosted their price objective on shares of FedEx from $280.00 to $290.00 and gave the stock an “equal weight” rating in a research note on Monday, December 8th. The Goldman Sachs Group raised their target price on shares of FedEx from $280.00 to $301.00 and gave the company a “buy” rating in a research note on Thursday, December 11th. Evercore ISI lifted their price target on shares of FedEx from $239.00 to $275.00 and gave the stock an “in-line” rating in a report on Tuesday, December 9th. Finally, Jefferies Financial Group increased their price objective on FedEx from $280.00 to $315.00 and gave the company a “buy” rating in a report on Thursday, December 11th. One analyst has rated the stock with a Strong Buy rating, fifteen have issued a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat.com, FedEx has a consensus rating of “Moderate Buy” and an average price target of $285.67.

Hedge Funds Weigh In On FedEx

A number of hedge funds have recently made changes to their positions in the company. Wealth Watch Advisors INC purchased a new stake in shares of FedEx during the third quarter worth approximately $28,000. Johnson Financial Group Inc. boosted its stake in FedEx by 127.6% during the 3rd quarter. Johnson Financial Group Inc. now owns 371 shares of the shipping service provider’s stock worth $88,000 after purchasing an additional 208 shares during the last quarter. Newbridge Financial Services Group Inc. grew its holdings in shares of FedEx by 1,505.0% during the third quarter. Newbridge Financial Services Group Inc. now owns 642 shares of the shipping service provider’s stock worth $151,000 after buying an additional 602 shares in the last quarter. Quantbot Technologies LP acquired a new stake in shares of FedEx in the second quarter valued at about $186,000. Finally, Garden State Investment Advisory Services LLC purchased a new position in shares of FedEx in the second quarter worth about $209,000. Institutional investors and hedge funds own 84.47% of the company’s stock.

FedEx Company Profile

FedEx Corporation provides transportation, e-commerce, and business services in the United States and internationally. It operates through FedEx Express, FedEx Ground, FedEx Freight, and FedEx Services segments. The FedEx Express segment offers express transportation, small-package ground delivery, and freight transportation services; and time-critical transportation services.