FedEx Beats Wall Street Estimates Across the Board, Raises Full-Year Outlook on Strong Holiday Quarter

The package that FedEx delivered to Wall Street on Thursday was bigger than expected.

The Memphis-based logistics giant reported fiscal third-quarter results that exceeded analyst projections on both the top and bottom lines, sending shares surging roughly 9 percent in extended trading . Revenue for the quarter ended February 28 came in at $24 billion, up 8 percent year over year from $22.2 billion and beating the consensus estimate of approximately $23.5 billion by $520 million . Adjusted earnings per share hit $5.25, a 16 percent increase that cleared the Street's forecast of $4.09 by a wide margin FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1..

On a GAAP basis, FedEx posted net income of $1.06 billion, or $4.41 per share, compared with $909 million, or $3.76 per share, in the same period a year earlier FedEx raises guidance again after strong earnings beatfinance.yahoo.com·SecondaryFedEx Corp. on Thursday reported strong fiscal third-quarter earnings, exceeding optimistic analyst expectations, and raised full-year guidance once again. Corporate revenue increased 8% year over year to $24 billion, beating consensus estimates by $520 million, and adjusted earnings per share hit $5.25 (consensus was $4.09), up 16%, behind yield and volume strength across nearly all package services, plus cost savings from restructuring initiatives.. Adjusted operating income reached $1.68 billion, beating estimates of $1.39 billion FedEx raises guidance again after strong earnings beatfinance.yahoo.com·SecondaryFedEx Corp. on Thursday reported strong fiscal third-quarter earnings, exceeding optimistic analyst expectations, and raised full-year guidance once again. Corporate revenue increased 8% year over year to $24 billion, beating consensus estimates by $520 million, and adjusted earnings per share hit $5.25 (consensus was $4.09), up 16%, behind yield and volume strength across nearly all package services, plus cost savings from restructuring initiatives.. The results covered the critical holiday shipping season, and management credited disciplined execution and the company's expanding digital toolkit for the outperformance.

Guidance Gets a Second Lift

Alongside the earnings beat, FedEx raised its full-year outlook for fiscal 2026 — the second upward revision in a matter of weeks, following an earlier bump at the company's Investor Day on February 12 . The company now expects revenue to grow between 6.0 percent and 6.5 percent year over year, up from the prior forecast of 5 percent to 6 percent . Adjusted earnings per share are projected in the range of $19.30 to $20.10, compared with the previous guidance of $17.80 to $19 .

In December, the forecast had called for EPS of $17.20 to $19 and consolidated revenue growth of about 5 percent at the midpoint FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1.. The successive raises suggest management sees momentum building rather than peaking.

Network 2.0 Savings Exceed Targets

A central pillar of the improved outlook is FedEx's Network 2.0 restructuring initiative, which is focused on consolidating its sprawling ground and express networks into a unified operation. The company had previously guided for roughly $1 billion in permanent cost reductions during fiscal 2026; it now expects those savings to exceed that threshold FedEx raises guidance again after strong earnings beatfinance.yahoo.com·SecondaryFedEx Corp. on Thursday reported strong fiscal third-quarter earnings, exceeding optimistic analyst expectations, and raised full-year guidance once again. Corporate revenue increased 8% year over year to $24 billion, beating consensus estimates by $520 million, and adjusted earnings per share hit $5.25 (consensus was $4.09), up 16%, behind yield and volume strength across nearly all package services, plus cost savings from restructuring initiatives..

The restructuring carries tangible consequences on the ground. FedEx plans to close 475 parcel terminals by the end of 2027, including ten additional facilities in New York and Pennsylvania by this June FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1.. Capital spending has also been trimmed to a projected $4.1 billion, down from the $4.5 billion forecast in December FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1., a signal that efficiency gains are reducing the need for heavy investment.

Federal Express Segment Drives the Beat

The core Federal Express segment was the engine behind the quarter's performance. Segment revenue grew 10 percent to $21.2 billion, with operating income jumping 21 percent to $1.6 billion . Domestic revenue reached $9.86 billion, the highest quarterly figure since 2022, driven by a strategic focus on high-value business-to-business verticals FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1.. Volume in U.S. priority and deferred express services grew 7 percent, while international export revenue advanced 8 percent FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1..

The results suggest FedEx is capturing market share at a time when its primary domestic rival, UPS, is shrinking its own network footprint. Industry analysts noted on Thursday that UPS has been cutting jobs and shedding volume as it reduces its exposure to Amazon shipments and pivots toward more profitable segments that can support its high-wage unionized workforce FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1.. UPS has simultaneously been pressuring customers with price increases and elevated fuel surcharges, creating openings for FedEx to pick up business.

Freight Spin-Off Remains on Track — But the Unit Is Struggling

FedEx confirmed that FedEx Freight, its less-than-truckload division, remains on schedule to be spun off as a separate publicly traded company on June 1 FedEx raises guidance again after strong earnings beatfinance.yahoo.com·SecondaryFedEx Corp. on Thursday reported strong fiscal third-quarter earnings, exceeding optimistic analyst expectations, and raised full-year guidance once again. Corporate revenue increased 8% year over year to $24 billion, beating consensus estimates by $520 million, and adjusted earnings per share hit $5.25 (consensus was $4.09), up 16%, behind yield and volume strength across nearly all package services, plus cost savings from restructuring initiatives.. The separation is designed to let both entities operate with sharper strategic focus.

The Freight unit's recent results, however, highlight why the separation makes sense. Revenue at FedEx Freight declined 5 percent to $2 billion in the quarter, and operating income plunged 97 percent FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1.. The division has been under pressure from a soft freight market and overcapacity in the trucking sector, and splitting it off will allow the parent company's valuation to more directly reflect the strength of the parcel and express businesses.

Geopolitical Headwinds Remain Manageable — For Now

CEO Raj Subramaniam addressed the elephant in the room during the analyst call on Thursday. The ongoing conflict between the United States and Iran has disrupted shipping routes through the Strait of Hormuz and the broader Middle East, but Subramaniam characterized the impact as modest, noting that the region represents a relatively small part of FedEx's total revenue FedEx raises guidance again after strong earnings beatfinance.yahoo.com·SecondaryFedEx Corp. on Thursday reported strong fiscal third-quarter earnings, exceeding optimistic analyst expectations, and raised full-year guidance once again. Corporate revenue increased 8% year over year to $24 billion, beating consensus estimates by $520 million, and adjusted earnings per share hit $5.25 (consensus was $4.09), up 16%, behind yield and volume strength across nearly all package services, plus cost savings from restructuring initiatives..

The company also absorbed a hit from the grounding of its MD-11 freighter fleet, which has been undergoing safety inspections following a UPS cargo plane crash last November FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1.. That grounding reduced airlift capacity during the quarter, though management's decision to raise guidance suggests the financial drag was more than offset by strength elsewhere.

FedEx's stock price jumped $30 to $388 per share in after-hours trading on Thursday, reflecting confidence that the company's transformation plan is delivering tangible results FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1.. The market reaction was notably stronger than the initial 1 percent afterhours move captured in early wire reports FedEx Posts Higher Third-Quarter Sales, Boosts Outlooksj.com·Unverified, as investors digested the full scope of the guidance raise.

What Comes Next

The next major catalyst for FedEx will be the completion of the Freight spin-off in June, which should clarify the company's valuation as a pure-play parcel and express operator. Beyond that, the trajectory of Network 2.0 savings — and whether cost reductions continue to exceed targets — will determine whether the stock's rally has legs.

The broader environment remains uncertain. Tariff policy continues to shift under the Trump administration, global trade volumes face headwinds from the Iran conflict, and consumer spending patterns could soften if the Federal Reserve maintains its hawkish stance. FedEx's raised guidance leaves limited room for error, with adjusted EPS now projected as high as $20.10 for the full year FedEx beats on top and bottom lines, raises guidance on strong performancecnbc.com·SecondaryFedEx on Thursday reported strong fiscal third-quarter results that beat Wall Street's expectations. The company also raised its guidance for fiscal 2026, projecting revenue growth of 6% to 6.5% compared with analyst estimates of up 5.6%. Shares of FedEx rose roughly 9% in extended trading. Here's how the company performed in the fiscal third quarter, compared with what analysts were expecting, according to LSEG: For the quarter, FedEx reported adjusted operating income of $1..

But for now, FedEx has delivered what its investors wanted: evidence that the most ambitious restructuring in the company's history is working, and that the second CEO in FedEx's 53-year run can build on what founder Fred Smith started.