Rear view of a FedEx delivery truck with logo parked on a street in the Dogpatch neighborhood on February 25, 2026 in San Francisco, California.
Smith Collection/Gado | Archive Photos | Getty Images
fedex on Thursday reported strong third-quarter results that beat Wall Street expectations.
The company also raised its outlook for fiscal 2026, predicting revenue growth of 6% to 6.5%, compared to the 5.6% growth expected by analysts.
FedEx stock rose about 9% in after-hours trading.
According to LSEG, the company’s fiscal third-quarter results compared to analyst expectations are as follows:
Earnings per share: $5.25 adjusted vs. $4.09 expected Revenue: $24 billion vs. $23.43 billion
FedEx reported adjusted operating income of $1.68 billion for the quarter, beating expectations of $1.39 billion. The company reported net income of $1.06 billion, or $4.41 per share, up from $909 million, or $3.76 per share, in the year-ago period. FedEx reported EPS of $5.25, adjusted for spin-off costs and other one-time items.
The company also raised its adjusted EPS forecast for fiscal 2026, now expecting earnings per share of $19.30 to $20.10, compared with previous guidance of $17.80 to $19 per share.
“Team FedEx delivered another strong quarter of this year and delivered excellent service to our customers, driven by disciplined business execution, the resilience of our global network and the accelerating impact of our advanced digital solutions,” CEO Raj Subramaniam said in a statement.
The company previously said its “Network 2.0” initiative, which focuses on leveraging automation and artificial intelligence to optimize the efficiency of packaging processes, is expected to save about $1 billion. FedEx currently expects these savings to exceed $1 billion.
FedEx said its cargo business, FedEx Freight, is on track to be spun off as a separate publicly traded company on June 1.
Subramaniam said on a conference call with analysts that the company expects “moderate” headwinds from disruption from the Iran war, and that the Middle East accounts for a “relatively small” share of total sales.
