FedEx Reports Strong Third Quarter Results
FedEx reported September-quarter revenue of $22.9B, up ~12% YoY, with adjusted EPS of $3.74 versus $2.93 a year ago; adjusted operating margin expanded to 5.3% from 5.1%. Management raised its calendar 2026 outlook: revenue growth to ~12% (from ~11%) and adjusted EPS to $18.00-$18.60 (from $16.90-$18.10), citing package yields, volumes, and structural cost reductions. GAAP EPS of $1.21 was depressed by a $5.18 per-share mark-to-market loss on the retained 19.9% FedEx Freight stake, partially offset by a $627M pre-tax gain on ~$4.9B of debt tenders.
Key figures
- Eps
- 3.74
- Revenue
- 22900000000
- Guidance
- CY26 revenue growth raised to ~12% YoY (from ~11%); adjusted diluted EPS raised to $18.00-$18.60 (from $16.90-$18.10); GAAP diluted EPS $35.30-$35.90
- Revenue Yoy
- 12.3%
- Cash
- 8000000
- Net income gaap
- 290000000
- Buybacks completed
- 2000000000
- Rate increase 2027
- 5.9%
- Shares repurchased
- 6300000
- Spin off stake value
- 3300000000
- Debt tender principal
- 4900000000
- Operating margin gaap
- 4.7%
- Supply chain sale price
- 1400000000
- Capital spending forecast
- 3900000000
- Freight dividend received
- 4100000000
- Operating income adjusted
- 1200000000
- Operating margin adjusted
- 5.3%
- Pension contributions forecast
- 475000000
- Buyback authorization remaining
- 4300000000
- Gain on debt extinguishment pretax
- 627000000
AI analysis
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