Fedex Corp
Q1 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.14%.
Did FDX Beat Earnings? Q1 2026 Results
FedEx opened its fiscal 2026 on a strong note, posting first-quarter adjusted EPS of $3.83 against the $3.62 consensus estimate, a 5.76% beat, while consolidated revenue climbed 3.1% year-over-year to $22.24 billion, topping analyst expectations by 2.69%. The standout driver was the Federal Express segment, where U.S. domestic package revenue surged 8% to $12.69 billion on higher yields and a 5% increase in average daily volume, reflecting the tangible payoff from the company's ongoing transformation cost-reduction program. Those gains were partially tempered by a 47% plunge in U.S. freight revenue following the expiration of the USPS contract and a 25% reduction in transpacific freighter capacity as tariffs weighed on China-to-U.S. shipment volumes, a headwind management estimates will cost approximately $1 billion this fiscal year. Looking ahead, FedEx guided for full-year revenue growth of 4% to 6% and adjusted EPS of $17.20 to $19.00, with a 5.9% rate increase taking effect in January, signaling measured confidence even as <a href="https://247wallst.com/investing/2025/07/25/nasdaq-composite-live-higher-highs-with-the-federal-reserve-on-deck/">broader market conditions</a> remain in focus.
- Higher U.S. domestic and international priority package yields
- Continued cost savings from transformation initiatives
- Increased U.S. domestic package volume, with total U.S. domestic ADV up 5%
- U.S. ground home delivery/economy volume growth of 7%
- Composite package yield increased 2% year-over-year
- Lower fuel costs down 19% year-over-year
- Business optimization costs reduced 48% year-over-year
“Our earnings growth underscores the success of our strategic initiatives, as we are flexing our network and reducing our cost-to-serve, while further enhancing our value proposition and customer experience.”
FedEx CEO, on the earnings call
Forward Guidance & Outlook
For fiscal 2026, FedEx forecasts 4% to 6% revenue growth year-over-year; diluted EPS of $14.20 to $16.00 before MTM retirement plans accounting adjustments, and $17.20 to $19.00 after also excluding business optimization, FedEx Freight spin-off, and fiscal year change costs; an effective tax rate of approximately 25% prior to MTM adjustments; pension contributions of up to $400 million (reduced from prior $600 million forecast); permanent cost reductions of $1 billion in transformation-related savings; and capital spending of $4.5 billion prioritizing network optimization, efficiency, fleet and facility modernization, and automation. Average rate increases of 5.9% take effect January 5, 2026. Forecasts assume current economic and fuel price expectations with no additional adverse economic, geopolitical, or trade-related developments.
FDX YoY Financials
FDX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.