So, FedEx just dropped its report card for the fiscal third quarter, and it's the kind of performance that makes shareholders want to send a thank-you note. The shipping giant FedEx Corp (FDX) posted numbers on Thursday that comfortably beat what Wall Street was expecting.
Here's the headline: revenue came in at $24 billion, topping the consensus estimate of $23.42 billion. Even more impressive was the bottom line, with adjusted earnings per share hitting $5.25. Analysts, according to market data, were only looking for $4.13. That's a beat of over a dollar, which in earnings-per-share land is like winning by a mile.
Digging into the segments, the story is a bit of a split delivery. The core FedEx Express business did well, with operating results improving thanks to higher package yields, cost savings from the company's ongoing transformation, and an increase in U.S. domestic package volume.
On the other side of the ledger, the FedEx Freight segment saw its results decrease. The company pointed to a few culprits: increased costs tied to the planned spin-off of the business, lower shipments, and higher wage rates. Speaking of that spin-off, FedEx confirmed it's still full steam ahead for a June 1 separation date.
"Team FedEx delivered another quarter of strong financial results and excellent service for our customers, powered by disciplined operational execution, the resilience of our global network, and the accelerating impact of our advanced digital solutions," said Raj Subramaniam, the company's president and CEO.
Looking ahead, FedEx is feeling confident enough to raise its guidance. The company now expects revenue to be up 6% to 6.5% for the full fiscal year 2026, compared to its prior forecast of 5% to 6% growth. It also reaffirmed its plan to achieve $1 billion in permanent cost reductions from structural changes and its Network 2.0 initiative.
For the full year, FedEx expects adjusted earnings per share to land between $19.30 and $20.10. The consensus estimate among analysts sits at $18.70, so the company's guidance range is comfortably above that bar.
Investors seemed to approve of the package. FedEx shares were up 2.78% in after-hours trading Thursday, changing hands around $367. The company's executives will provide more color on the quarter during an earnings call scheduled for 5:30 p.m. ET.
