Fedex Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did FDX Beat Earnings? Q2 2026 Results
FedEx delivered a standout fiscal second quarter for 2026, posting adjusted diluted EPS of $4.82 against a Wall Street consensus of $4.11, a beat of 17.16% that reflected both operational momentum and the deepening payoff of the company's ongoing DRIVE efficiency program. Consolidated revenue climbed 6.8% year over year to $23.47 billion, clearing the $22.80 billion estimate by 2.94%, with the Federal Express segment serving as the primary engine; that unit alone generated $20.43 billion in quarterly revenue, up 8% annually, as U.S. domestic package volume expanded across all service tiers and domestic composite yields rose 5%. Adjusted operating income reached $1.61 billion with a 6.9% margin, up from 6.3% a year prior, underscoring the cost discipline that has drawn growing analyst conviction around FedEx's transformation story. Looking ahead, management raised its full-year revenue growth outlook to 5%-6% and lifted its adjusted EPS range to $17.80-$19.00, signaling confidence even as the planned June 2026 spin-off of FedEx Freight and global trade policy uncertainty remain key variables to watch.
- Strength in U.S. domestic and International Priority package yields
- Continued structural cost reductions from DRIVE and Network 2.0 transformation initiatives
- Higher U.S. domestic package volume across all service tiers
- Lower business optimization costs compared to prior year quarter
- Share repurchase activity benefiting EPS by $0.05 per diluted share
“FedEx delivered an outstanding second quarter as we successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment.”
FedEx CEO, on the earnings call
Forward Guidance & Outlook
FedEx raised its full-year fiscal 2026 outlook, now expecting 5%-6% revenue growth year-over-year (narrowed from prior 4%-6%). Adjusted diluted EPS is expected at $14.80 to $16.00 before MTM retirement plans accounting adjustments (raised from $14.20 to $16.00), and $17.80 to $19.00 after also excluding spin-off, business optimization, fiscal year change costs, and an international regulatory matter (raised from $17.20 to $19.00). Pension contributions are now expected at $275 million, reduced from up to $400 million. The company reaffirmed $1 billion in permanent transformation-related cost savings, an effective tax rate of approximately 25% before MTM adjustments, and capital spending of $4.5 billion focused on network optimization, fleet and facility modernization, and automation. Forecasts assume the company's current economic outlook and fuel price expectations with no additional adverse economic, geopolitical, or trade-related developments.
FDX YoY Financials
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Figures from SEC filings and company reports. Not investment advice.