FedEx Raises Calendar 2026 Profit Outlook To $18.00-$18.60 A Share Even As Freight Stake Loss Cuts Reported Earnings
Adjusted earnings hit $3.74 a share in the quarter, while reported earnings fell to $1.21 on a $1.2 billion loss on the FedEx Freight stake.
FedEx raised its calendar 2026 adjusted earnings forecast to $18.00 to $18.60 a share, up from $16.90 to $18.10, after higher package prices and volumes lifted third-quarter results, the company said Wednesday. A $1.2 billion loss on its retained FedEx Freight stake pulled reported earnings down to $1.21 a share from $2.73.
Adjusted up, reported down
Revenue for the quarter ended September 30 rose to $22.9 billion from $20.4 billion a year earlier. Adjusted earnings reached $3.74 per share against $2.93.
Operating income climbed to $1.07 billion as reported, or $1.20 billion adjusted. FedEx credited higher package yields, more package volume and structural cost cuts, partly offset by pricier purchased transportation, higher wages and the financial impact of global trade policy changes.
The gap between the two earnings figures comes from adjustments. Per share, the loss on the retained stake took $5.18 off reported results, while a gain on retiring debt added $1.97 and restructuring, exit and other costs added $0.68 back in the adjusted figure. The debt gain was $627 million before tax.
The Freight stake and the spin-off
FedEx, which runs an air and ground express network and also owns FedEx Office, completed the spin-off of FedEx Freight on June 1, 2026 and kept a 19.9% stake. That stake is carried at fair value, so changes run through net income. Its carrying value was $3.3 billion at September 30.
FedEx used the roughly $4.1 billion dividend from FedEx Freight, plus cash on hand, to fund tender offers for about $4.9 billion of its debt. On October 1 it completed the sale of FedEx Supply Chain to CMA CGM Group for approximately $1.4 billion.
The full-year outlook also moved: revenue growth of about 12%, against about 11% before, and an effective tax rate of about 22.5%, down from about 23%. Reported diluted earnings are forecast at $35.30 to $35.90 a share, before additional mark-to-market adjustments.
Buybacks, cash and the next rate hike
FedEx completed $2.0 billion of stock repurchases from June through September, about 6.3 million shares, and $4.3 billion remained under its 2026 authorization. Cash stood at $8 billion on September 30, including approximately $2.7 billion in tariff refunds held for customers.
CEO Raj Subramaniam said FedEx is "winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook."
Parcel shipping rates rise an average of 5.9% on January 4, 2027. FedEx holds its earnings call at 5:30 p.m. EDT Wednesday.
Capital spending for calendar 2026 is still forecast at $3.9 billion, and pension contributions at $475 million, both unchanged.
Sources
- 8-K Filing — FEDEX CORP (FDX) — SEC EDGAR
- Exhibit fdx-earningsreleasety2026q3.htm — FEDEX CORP 8-K exhibit — SEC EDGAR
- FedEx Earnings Are Imminent; These Most Accurate Analysts Revise Forecasts Ahead Of Earnings Call — benzinga.com
