FedEx Corp (FDX) delivered a solid surprise on Thursday, posting stronger-than-expected second-quarter results and raising its full-year guidance. The logistics giant's performance was impressive enough to prompt half a dozen Wall Street analysts to lift their price targets.
The numbers tell a good story. 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, crushing estimates of $4.11 per share. That's the kind of beat that gets attention.
"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.
The company didn't just celebrate past performance. FedEx now expects revenue growth of 5% to 6% for fiscal 2026, up from its previous guidance of 4% to 6%. The company also reaffirmed its plans for permanent cost reductions of $1 billion through structural improvements and its Network 2.0 initiative.
On the earnings front, FedEx raised the low end of its adjusted earnings guidance range from $17.20-$19 per share to $17.80-$19 per share. Analysts had been modeling $18.22 per share for the full year.
FedEx shares gained 0.1% to $287.39 on Friday following the announcement.
The strong results prompted several Wall Street analysts to revise their outlook on the stock. Here's what they had to say:
- B of A Securities analyst Ken Hoexter maintained a Neutral rating and raised the price target from $285 to $315.
- Wells Fargo analyst Christian Wetherbee kept an Equal-Weight rating and lifted the price target from $290 to $295.
- Stifel analyst J. Bruce Chan maintained a Buy rating and increased the price target from $305 to $328.
- Jefferies analyst Stephanie Moore held a Buy rating and raised the price target from $315 to $326.
- JP Morgan analyst Brian Ossenbeck maintained a Neutral rating and boosted the price target from $285 to $294.
- BMO Capital analyst Fadi Chamoun kept a Market Perform rating and raised the price target from $265 to $290.
The analyst response reflects confidence in FedEx's execution, even as most maintained their cautious ratings. The price target increases suggest the quarter's performance has reset expectations for what the company can deliver going forward.
