FedEx Corp (FDX) delivered a solid earnings beat after the bell Thursday, showing that its network overhaul is paying off even as the company navigates choppy economic waters.

The Numbers That Matter

FedEx reported second-quarter revenue of $23.5 billion, comfortably ahead of the $22.79 billion analysts were expecting. Adjusted earnings came in at $4.82 per share, beating the $4.11 consensus estimate by a healthy margin.

The star of the show was the Federal Express segment, where operating results improved thanks to higher package yields in both U.S. domestic and international priority services. The company also benefited from ongoing cost savings, lower business optimization expenses, and a pickup in domestic package volumes.

The Freight segment told a different story. Operating results declined due to fewer shipments, rising wage costs, and expenses tied to hiring more sales professionals. That's partly by design: FedEx is preparing to spin off the Freight business in June 2026, and the unit absorbed $152 million in one-time separation costs during the quarter.

Cash Management and Strategic Moves

FedEx repurchased $276 million worth of its own shares during the quarter and ended the period sitting on approximately $6.6 billion in total cash.

"FedEx delivered an outstanding second quarter as we successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment," said Raj Subramaniam, president and CEO of FedEx.

Looking Ahead

The company lifted its fiscal 2026 revenue growth outlook to 5%-6%, up from previous guidance of 4%-6%. FedEx also reaffirmed its commitment to extracting $1 billion in permanent cost reductions through structural changes and its Network 2.0 initiative.

On the earnings front, FedEx raised the low end of its adjusted EPS guidance from a range of $17.20-$19 per share to a new range of $17.80-$19 per share. Analysts are currently modeling $18.22 per share for the full year.

Management planned to discuss the results further during an earnings call scheduled for 5:30 p.m. ET.

Stock Movement: FedEx shares climbed 2.26% in after-hours trading to $293.60 following the earnings release.