FedEx (FDX) Q3 2026 Earnings
Adjusted EPS excludes a $1,238 million loss on short-term investment (retained FedEx Freight stake, $5.18 per share), a $627 million pre-tax gain on extinguishment of debt ($(1.97) per share), and restructuring, exit and other costs of $130 million pre-tax, whose tax line includes a $263 million deferred income tax benefit on FedEx Supply Chain basis difference ($(0.68) per share net). GAAP diluted EPS was $1.21.
How Did FDX Stock React to Q3 2026 Earnings?
Did FDX Beat Earnings? Q3 2026 Results
Yes. FedEx reported Q3 2026 earnings of $3.74 a share on Oct 28, 2026, beating the $3.38 consensus estimate by 10.7%. Revenue was $22.9B against a $22.6B estimate.
FedEx delivered a convincing beat in its fiscal third quarter, posting adjusted diluted EPS of $3.74 against a Wall Street consensus of $3.38, a 10.67% positive surprise, while revenue of $22.86 billion edged past the $22.58 billion estimate by 1.21%. The headline driver was the reshaped Federal Express network, where U.S. domestic revenue climbed 10% to $14.71 billion on a 7% rise in composite package yields and stronger volume, and international revenue surged 17% to $7.46 billion on explosive international economy and priority freight demand. Structural cost cuts under the company's business optimization program lifted adjusted operating income to $1.20 billion from $1.03 billion a year ago, widening adjusted margin to 5.3%. GAAP results were clouded by a $1.24 billion mark-to-market loss on the retained FedEx Freight stake, held following the June spin-off, pushing GAAP diluted EPS to $1.21. Encouraged by the momentum, FedEx raised its calendar 2026 adjusted EPS forecast to $18.00 to $18.60 and lifted its revenue growth target to roughly 12%, with a 5.9% parcel rate increase set for January.
- Increased package base yields; U.S. domestic composite package yield up 7% to $15.32 and international composite package yield up 17% to $30.46
- Higher package volumes; total U.S. domestic ADV up 2% and international economy ADV up 17%
- Continued structural cost reductions from business optimization and transformation initiatives
- Improved service mix in Express U.S. Domestic
- Higher international export volume and freight weight; international average daily freight pounds up 15%
- Partially offset by purchased transportation costs up 19% and fuel expense up 64%
- Partially offset by higher wage rates, variable compensation and global trade policy impacts
- Share repurchases benefited quarterly results by $0.02 per diluted share
“As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook.”
FedEx CEO, on the earnings call
What Was FedEx's Outlook in Q3 2026?
For calendar 2026, FedEx raised its forecast. These forecasts assume FedEx's current economic forecast and fuel price expectations, and no additional adverse economic, geopolitical or trade developments. - **Revenue growth:** about 12% year over year, versus a prior forecast of about 11%. - **GAAP diluted EPS from continuing operations:** $35.30 to $35.90, versus a prior $16.55 to $17.75. This is before additional MTM adjustments for retirement plan accounting. - **Adjusted diluted EPS:** $18.00 to $18.60, versus a prior $16.90 to $18.10. - **Effective tax rate:** about 22.5%, versus a prior forecast of about 23%. - **Pension contributions:** $475 million, unchanged. - **Capital spending:** $3.9 billion, unchanged, prioritizing network optimization, fleet and facility modernization, and automation. Parcel shipping rates will increase an average of 5.9% effective January 4, 2027. Management also cited momentum toward its 2029 financial targets.
FDX YoY Financials
FDX Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.