FedEx beats profit expectations and raises its full-year outlook
FedEx just reported net income of $290 million for the quarter.
The short version
- Adjusted earnings reached $3.74 per share.
- The shipping giant also raised its full-year outlook.
- Strong package yields and volume drove the growth.
FedEx, the massive shipping and logistics company, just reported quarterly earnings that beat Wall Street expectations on both the top and bottom lines. The company posted net income of $290 million, or $1.21 per share, for the period ended Sept. 30, compared with $650 million a year prior.
Adjusting for one-time items, FedEx reported adjusted earnings per share of $3.74, according to CNBC. It marks the first earnings report of the company's newly realigned fiscal year, which moved its calendar end from May 31 to Dec. 31. The report also follows the successful spinoff of FedEx Freight into a separate publicly traded company.
FedEx said its express U.S. segment operating income increased, driven by higher package yields and volume. Raj Subramaniam, the CEO of FedEx, said in a statement that the strong operating results show the company is winning across high-value market segments while optimizing its network.
For the full year, the company now expects adjusted earnings per share of between $18 and $18.60, up from its prior range of $16.90 to $18.10. FedEx also revised its 2026 revenue growth expectation to a roughly 12% year-over-year increase, up from 11%.
Earlier this week, the company named Jamere Jackson as its new chief financial officer, effective Nov. 30. He replaces Claude Russ, who served as interim CFO since June. When major logistics companies raise their full-year guidance, it often signals steady shipping demand for goods moving across the country.
Photo: BigBear_in_IN, CC BY-SA 3.0, via Wikimedia Commons
