Trending Now - Fedex Increases Guidance Following Strong Earnings Report

WHO:

FedEx, CEO Raj Subramaniam, Bloomberg Intelligence senior analyst Lee Klaskow

WHAT:

FedEx reported fiscal third-quarter results that exceeded Wall Street expectations.

Earnings per share (EPS) adjusted: $5.25 vs. $4.09 expected.

Revenue: $24 billion vs. $23.43 billion expected.

Adjusted operating income: $1.68 billion vs. $1.39 billion expected.

Net income: $1.06 billion, or $4.41 a share, up from $909 million, or $3.76 a share, a year ago.

FedEx raised its fiscal 2026 adjusted EPS expectations to between $19.30 and $20.10 per share, up from previous guidance of $17.80 to $19 per share.

FedEx shares rose roughly 9% in extended trading.

FedEx expects revenue growth of 6% to 6.5% for fiscal 2026, compared to analyst estimates of 5.6%.

WHERE:

Middle East, where the war is occurring, is mentioned as a region of concern for FedEx.

WHEN:

FedEx's fiscal third quarter results were reported on Thursday, March 19th, 2026.

FedEx Freight is expected to be spun off into a separate publicly traded company on June 1st, 2026.

WHY:

FedEx does not expect the war in the Middle East to have a direct material effect on its business but warned of broader economic consequences.

The company aims to achieve roughly $1 billion in cost reductions from its "Network 2.0" initiative.

HOW:

FedEx's "Network 2.0" initiative focuses on optimizing efficiency of package processes by leveraging automation and artificial intelligence.

CEO Raj Subramaniam attributed the strong financial results to disciplined operational execution and the resilience of the global network.

(UPDATED March 20, 2026 15:16 UTC)

FedEx reported its fiscal third-quarter results on Thursday, March 19, 2026, surpassing Wall Street expectations with adjusted earnings per share of $5.25 and revenue of $24 billion. CEO Raj Subramaniam attributed the strong performance to disciplined operational execution and the resilience of the global network, while the company raised its fiscal 2026 adjusted EPS outlook to between $19.30 and $20.10 per share. Despite concerns about the ongoing war in the Middle East, FedEx does not anticipate a direct material impact on its business but is preparing for broader economic consequences.