FedEx has raised its full-year outlook after quarterly earnings and revenue came in ahead of Wall Street expectations, although shares fell slightly in extended trading.
The delivery company reported adjusted earnings per share of $3.74 for the period ended September 30, compared with the $3.36 expected by analysts. Revenue reached $22.86 billion, above the forecast of $22.42 billion.
Reported net income fell to $290 million, or $1.21 per share, from $650 million, or $2.73 per share, in the same period a year earlier. The adjusted figure excluded items including losses on short-term investments, gains from extinguishing debt and certain restructuring costs.
The results represent the first report under FedEx’s realigned financial year, following a change to the year-end from May 31 to December 31. They also come after the successful separation of FedEx Freight into a standalone publicly traded company.
FedEx said operating income in its US express segment increased during the quarter, helped primarily by higher package yields and stronger volume.
Raj Subramaniam, FedEx’s chief executive, said: “As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook.”
FedEx raises full-year earnings forecast
The company now expects full-year adjusted earnings per share of between $18 and $18.60, up from its previous forecast of $16.90 to $18.10.
FedEx also increased its forecast for 2026 revenue growth to roughly 12% year on year, compared with its earlier expectation of 11% growth.
The company said this week that Jamere Jackson, formerly of AutoZone, would become its new chief financial officer from November 30. He will replace Claude Russ, who has served as interim finance chief since June 1, after John Dietrich announced in April that he would step down.
