FedEx raises 2026 adjusted earnings forecast to $18.00–$18.60 per share
Key Facts
FedEx raised its 2026 adjusted earnings forecast range to $18.00–$18.60 per share. Investing.com reported that the company posted adjusted earnings of $3.74 per share in the quarter ended September 30, beating the average analyst estimate of $3.31. Revenue was $22.9 billion, compared with an estimate of $22.81 billion. The source reported that revenue rose 12% from $20.4 billion in the year-earlier period. The company's shares also rose 3.5% in after-hours trading, according to the same source. Regular trading on October 27 had ended with the stock rising from $300.58 the previous day to $307.1, according to EL7 data; the results were announced after the market closed, so that day's move does not represent a reaction to the results.
On operating margins, the GAAP margin fell to 4.7% from 4.8% in the year-earlier period, while the adjusted margin improved to 5.3% from 5.1%, according to Investing.com. The divergence puts revenue growth alongside a different picture of profitability depending on how it is calculated. The source noted that the decline in the GAAP margin may have concerned investors. However, the available text does not detail the reasons for changes in either margin or each business's contribution to them. The company also raised its 2026 revenue growth forecast to about 12% year over year, from about 11%, according to the same source.
The previous quarter provides a comparison showing different levels of revenue and adjusted earnings between the two quarters, with seasonal factors to be taken into account. FedEx reported revenue of $25.0 billion and adjusted diluted earnings of $6.31 per share in the fourth quarter ended May 31, 2026, according to an investor relations statement. In the quarter ended September 30, revenue was $22.9 billion and adjusted earnings were $3.74 per share, according to Investing.com. This comparison does not isolate the effect of seasonality or explain by itself the change between the periods. In June, Chief Executive Raj Subramaniam said the company was entering a new phase after completing the separation of FedEx Freight, with a focus on optimizing its network, reducing the cost to serve and generating free cash flow. He added: "With the successful spin-off of FedEx Freight, we enter this new phase well positioned for growth, while continuing to optimize our network and reduce the cost to serve."
In another step in the company's portfolio reshaping, FedEx completed the sale of FedEx Supply Chain to CMA CGM Group on October 1, at an enterprise value of $1.4 billion. The company said the deal supports simplifying its portfolio and focusing on its core businesses. The sale follows the FedEx Freight separation cited by the chief executive in June, as part of changes to the group's business structure. The available sale announcement did not estimate the deal's impact on earnings for the quarter ended September 30. Management's focus on the network and cost to serve, alongside portfolio simplification, provides corporate context for assessing the new revenue and earnings guidance.
FedEx's third-quarter results call was scheduled for October 28, 2026, at 4:30 p.m. CT, according to the investor relations page. The call gives the company an opportunity to discuss results and guidance after the figures are released, while its scheduled date falls after the results announcement date cited in the coverage. A later listed date is the 2026 fourth-quarter results call on February 2, 2027, at 4 p.m. CT. The available information included no further details on the upcoming call's agenda or additional guidance updates. The share move cited after the announcement was a 3.5% decline in extended trading on Wednesday, according to Investing.com.