FedEx raises guidance again after strong earnings beat

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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. FedEx (NYSE: FDX) delivered strong results for the quarter ended Feb. 28, which included the all-important holiday season, despite a slowing global economy, uncertainty over tariffs and geopolitical risks. Income was also negatively affected by the grounding of the MD-11 fleet because of ongoing safety inspections following last November’s crash of a UPS freighter.The company’s stock price jumped $30 to $388 per share, up 9%, in aftermarket trading on Wall Street. The market’s reaction to the earnings report demonstrates that FedEx is building confidence that it can deliver on the positive outlook shared at Investor Day on Feb. 12.Based on its results, FedEx said it now expects fiscal year 2026 revenue to grow 6.25% at the mid range vs. 5.5%, with adjusted EPS of $19.30 to $20.10, up from the prior range of $17.80 to $19.Management had already guidance at the Investor Day event. In December, the forecast called for EPS in the range of $17.20 to $19 and consolidated revenue growth of 5% at the mid range.FedEx now expects permanent cost reductions of more than $1 billion in transformation-related savings in FY26 based on structural cost reductions and the progress of its network integration effort, compared to the prior forecast of $1 billion. The Memphis, Tennessee-based parcel and logistics power plans to close 475 parcel terminals by the end of 2027, including 10 more in New York and Pennsylvania by this June, as FreightWaves reported Wednesday.Capital spending is projected at $4.1 billion, down from the $4.5 billion forecast in December.For the quarter, FedEx reported adjusted operating income of $1.62 billion, up 7% year over year.Federal Express segment revenue grew 10% to $21.2 billion, with operating income up 21%to $1.6B. Express revenue was driven by 10% growth in domestic revenue, with $9.86 billion marking the highest quarterly domestic revenue since 2022. The strategic focus on high-value B2B verticals contributed to 7% volume growth in U.S. priority and deferred express services, according to the filing. International export revenue was also strong at 8% growth. FedEx Freight, which will be spun off as a separate company in June, saw revenue decline 5% to $2 billion and income plunge 97%.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoTrending tickersBTC-USD Bitcoin USD 70,675.25 -72.70 (-0.10%)^GSPC S&P 500 6,506.48 -100.01 (-1.51%)^IXIC NASDAQ Composite 21,647.61 -443.08 (-2.01%)VST Vistra Corp. 146.02 -21.12 (-12.64%)UAL United Airlines Holdings, Inc. 89.95 -4.20 (-4.46%)PortfolioSign in to access your portfolioSign inTop gainersPL Planet Labs PBC 33.83 +6.87 (+25.48%)PSNYW Polestar Automotive Holding UK PLC 5.25 +0.88 (+20.14%)YSS York Space Systems, Inc. 21.07 +3.39 (+19.17%)LBTYB Liberty Global Ltd. 14.17 +2.03 (+16.72%)SEDG SolarEdge Technologies, Inc. 51.73 +6.07 (+13.29%)Top losersSMCI Super Micro Computer, Inc. 20.53 -10.26 (-33.32%)AAOI Applied Optoelectronics, Inc. 87.54 -14.38 (-14.11%)VICR Vicor Corporation 164.54 -25.59 (-13.46%)VST Vistra Corp. 146.02 -21.12 (-12.64%)FLOC Flowco Holdings Inc. 21.69 -2.76 (-11.29%)Most activeCMCSA Comcast Corporation 29.02 +0.04 (+0.14%)SMCI Super Micro Computer, Inc. 20.53 -10.26 (-33.32%)NVDA NVIDIA Corporation 172.70 -5.86 (-3.28%)RITM Rithm Capital Corp. 8.77 -0.26 (-2.88%)PLUG Plug Power Inc. 2.2300 -0.1700 (-7.08%)Top economic eventsEarnings eventsMy earnings eventsEarnings events