FedEx beats expectations, raises outlook in first report since calendar adjustment

Summary

• FedEx reported quarterly earnings that exceeded Wall Street expectations for both earnings per share and revenue.
• Adjusted earnings per share were $3.74 compared to an expected $3.36.
• Revenue reached $22.86 billion versus an expected $22.42 billion.
• Net income for the quarter ended Sept. 30 was $290 million, or $1.21 per share, down from $650 million, or $2.73 per share, in the prior year period.
• Adjusted earnings per share included one-time items such as losses on short-term investments, gains on debt extinguishment, & restructuring costs.
• This report marks the first quarter of FedEx's realigned fiscal year, which now ends on Dec. 31 instead of May 31.
• The report follows the successful spinout of FedEx Freight into a separate publicly traded company.
• Operating income for the express U.S. segment increased due to higher package yields & volume.
• FedEx raised its full-year adjusted earnings per share outlook to a range of $18 to $18.60 from a prior range of $16.90 to $18.10.
• The company revised its 2026 revenue growth expectation to approximately 12% year-over-year, up from a previous 11% forecast.
• Shares of the company fell slightly in extended trading following the announcement.
• FedEx named former AutoZone executive Jamere Jackson as its new chief financial officer, effective Nov. 30.
• Jamere Jackson replaces Claude Russ, who served as interim CFO since June 1.
• John Dietrich was announced as stepping down from the CFO role in April.