FedEx Raises Full-Year Profit Target Amid Strong Third-Quarter Performance

FedEx reported third-quarter results on Wednesday that exceeded Wall Street projections, prompting the company to increase its financial guidance for the remainder of the year. Despite the positive numbers, the company’s stock price declined slightly in extended trading following the release of the data.

For the quarter ending September 30, FedEx recorded adjusted earnings of $3.74 per share. This figure surpassed the average analyst estimate of $3.36 compiled by LSEG. Total revenue came in at $22.86 billion, which is higher than the consensus forecast of $22.42 billion. On a reported basis, net income stood at $290 million, or $1.21 per share. This compares to net income of $650 million, or $2.73 per share, for the same period last year. The adjusted earnings metric excludes specific one-time items, such as losses from short-term investments, gains from debt extinguishment, and certain restructuring costs.

This report marks the first filing under FedEx’s revised fiscal calendar, which now ends on December 31 instead of May 31. The company also completed the spinoff of FedEx Freight into an independent public entity prior to this reporting period. Operational data shows that operating income increased within the express U.S. segment during the quarter. Management attributed this growth primarily to higher package yields and increased shipment volume.

CEO Raj Subramaniam addressed the performance in a statement, noting that strong operating results and adjusted free cash flow indicate success in high-value market segments. He stated that the company is optimizing its network, which is driving the upward revision to the full-year outlook.

FedEx now projects full-year adjusted earnings per share between $18 and $18.60. This revised range is higher than the previous forecast of $16.90 to $18.10. The company also raised its expectation for 2026 revenue growth to approximately 12% year over year, an increase from the previously projected 11%.

In a separate personnel move, FedEx announced the appointment of Jamere Jackson as its new chief financial officer. Jackson, a former executive at AutoZone, will begin his tenure on November 30. He succeeds Claude Russ, who has served as interim CFO since June 1. John Dietrich was previously identified as stepping down from the CFO role in April.