FedEx (NYSE:FDX) Issues Earnings Results

FedEx (NYSE:FDX) announced its quarterly earnings data on Wednesday. The shipping service provider reported $3.74 earnings per share (EPS) for the quarter, topping the consensus estimate of $3.34 by $0.40, Zacks reports. FedEx had a net margin of 4.68% and a return on equity of 16.49%. The company had revenue of $22.93 billion for the quarter, compared to analysts’ expectations of $22.73 billion. During the same quarter in the previous year, the company posted $3.83 EPS. The business’s revenue was up 12.3% compared to the same quarter last year.

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

• FedEx raised its CY 2026 outlook to adjusted EPS of $18.00–$18.60 and approximately $4 billion in adjusted free cash flow, implying roughly 23% year-over-year EPS growth at the midpoint.
• Third-quarter revenue increased 12% and adjusted operating income rose 16%, supported by strong base yields, B2B and premium B2C demand, international export growth, and a 52% increase in international adjusted operating income.
• Network 2.0 is nearing 65% of eligible volume across roughly 630 optimized stations, with more than 260 stations closed; management continues to target nearly $1 billion of savings in 2026 and cumulative savings of $2 billion by the end of 2027.
• The company repurchased $2 billion of stock since June and retains $4.3 billion of authorization, while also expecting to monetize its 19.9% FedEx Freight stake within 24 months of the spin-off to support shareholder returns.
• Fourth-quarter profitability faces transitory pressure from higher over-the-road transportation rates, the new pilot agreement, aircraft maintenance costs, fuel impacts, and peak-season expenses; management expects U.S. domestic operating margin to decline moderately in Q4 before improving in 2027.

FedEx Stock Performance

Shares of NYSE:FDX opened at $305.00 on Thursday. FedEx has a 1-year low of $198.00 and a 1-year high of $345.36. The company has a current ratio of 1.48, a quick ratio of 1.44 and a debt-to-equity ratio of 0.74. The stock has a market capitalization of $72.19 billion, a P/E ratio of 16.48, a P/E/G ratio of 1.53 and a beta of 1.28. The business has a 50-day moving average price of $304.96 and a two-hundred day moving average price of $337.16.

FedEx Announces Dividend

The company also recently disclosed a quarterly dividend, which was paid on Thursday, October 1st. Shareholders of record on Monday, September 14th were given a $1.22 dividend. This represents a $4.88 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date was Monday, September 14th. FedEx’s dividend payout ratio (DPR) is presently 26.36%.

Key Stories Impacting FedEx

Here are the key news stories impacting FedEx this week:

• Positive Sentiment: FedEx reported quarterly revenue of approximately $22.9 billion, above analyst expectations, while adjusted earnings per share of $3.74 exceeded the $3.34 consensus. Revenue growth was supported by higher shipping rates and package volumes. Reuters report on FedEx earnings
• Positive Sentiment: Management raised its 2026 outlook, calling for roughly 12% revenue growth and adjusted EPS of about $18.60. Cost-saving and network-optimization initiatives helped offset wage, fuel and other operating pressures. RTTNews report on FedEx guidance
• Positive Sentiment: FedEx repurchased approximately $2 billion of stock during the period and reported strong operating cash flow, with roughly $4.3 billion remaining under its buyback authorization. These actions may support per-share results and shareholder returns. MoneyCheck report on FedEx buybacks
• Neutral Sentiment: FedEx named Jamere Jackson as its incoming chief financial officer, effective November 30. His experience could influence future capital-allocation, cost-control and technology-investment decisions, but the impact is not yet measurable. Yahoo Finance report on FedEx CFO appointment
• Negative Sentiment: GAAP profit fell sharply, largely because of a reported $1.2 billion loss tied to the FedEx Freight investment. That produced diluted GAAP EPS of about $1.21, making the headline earnings decline more pronounced despite the adjusted beat. Quiver Quantitative report on FedEx earnings
• Negative Sentiment: Investors appear concerned that the holiday-quarter outlook is softer than hoped and that operating-margin performance remains pressured. As a result, the positive guidance revision and earnings beat were not sufficient to overcome worries about near-term profitability and seasonal demand. CNBC analysis of FedEx holiday outlook

Analyst Upgrades and Downgrades

A number of brokerages recently weighed in on FDX. JPMorgan Chase & Co. cut their price objective on FedEx from $400.00 to $399.00 and set an “overweight” rating on the stock in a research note on Monday, October 5th. Wall Street Zen raised shares of FedEx to a “hold” rating in a report on Saturday, August 8th. Citigroup reiterated a “cautious” rating on shares of FedEx in a research note on Wednesday, October 7th. Weiss Ratings lowered shares of FedEx from a “buy (b-)” rating to a “hold (c+)” rating in a research note on Wednesday, September 2nd. Finally, Truist Financial dropped their target price on shares of FedEx from $365.00 to $350.00 and set a “buy” rating on the stock in a report on Wednesday, October 7th. One equities research analyst has rated the stock with a Strong Buy rating, seventeen have assigned a Buy rating, nine have assigned a Hold rating and two have issued a Sell rating to the stock. Based on data from MarketBeat.com, the company currently has an average rating of “Moderate Buy” and an average target price of $362.60.

About FedEx

FedEx Corporation (NYSE: FDX) is a global transportation, e-commerce and business services company headquartered in Memphis, Tennessee. Through its operating companies, FedEx provides time-definite express delivery, ground shipping, freight transportation, customs brokerage, logistics and supply chain services for businesses, governments and consumers.

The company’s services include domestic and international package delivery, less-than-truckload freight transportation, warehousing, fulfillment, supply chain management and specialized logistics solutions.