TLDRFedEx revenue climbs 12% to $22.9 billion as adjusted earnings rise in Q3 2026.FedEx repurchases $2 billion in shares as $4.3 billion remains for future buybacks.FedEx raises 2026 revenue growth guidance to 12% and adjusted EPS to $18.60.FedEx GAAP earnings fall sharply after a $1.2 billion loss on its Freight investment.FedEx stock drops 2.40% after hours to $297.27 despite stronger adjusted results.FedEx (FDX) reported stronger quarterly revenue and adjusted earnings, increased share repurchases and raised its 2026 financial outlook. However, the stock faced selling pressure after closing at $304.58, down 0.82%, before falling to $297.27 after hours, a decline of 2.40%. The results reflected stronger package demand, cost savings, and improved operating performance, although a large investment loss reduced reported earnings.FedEx Corporation, FDXRevenue Growth and Adjusted Earnings Strengthen Operating ResultsFedEx generated $22.9 billion in revenue for the quarter ended September 30, 2026, compared with $20.4 billion a year earlier. The increase represented approximately 12% annual growth, supported by higher package volumes, stronger base yields, and continued cost reductions. Additionally, adjusted operating income rose 16% to $1.20 billion, compared with $1.03 billion in the previous year’s quarter.Adjusted diluted earnings per share increased to $3.74 from $2.93, representing growth of approximately 28%. Meanwhile, adjusted operating margin improved to 5.3% from 5.1%, reflecting stronger underlying performance despite higher operating expenses. Higher transportation rates, wage costs, variable compensation, and global trade policy changes partially offset these improvements.GAAP diluted earnings per share fell to $1.21 from $2.73, while net income declined approximately 55% to $290 million. FedEx recorded a $1.2 billion loss on its retained FedEx Freight investment following the June spin-off. The valuation loss reduced quarterly diluted earnings per share by $5.18, while a debt-extinguishment gain and restructuring adjustments affected the reported results.$2 Billion Buybacks Support Capital ReturnsFedEx repurchased approximately 6.3 million shares for $2 billion between June and September 2026. The company reported that reduced outstanding shares contributed $0.02 to quarterly diluted earnings per share. Furthermore, FedEx retained $4.3 billion in authorization for additional share repurchases at the end of September.The company held $8 billion in cash on September 30, including approximately $2.7 billion in tariff refunds reserved for customers. FedEx also used a dividend of approximately $4.1 billion from FedEx Freight, alongside existing cash, to fund debt tender offers. Those transactions covered approximately $4.9 billion in outstanding debt principal and generated a $627 million pretax gain.Meanwhile, FedEx completed the sale of FedEx Supply Chain to CMA CGM Group on October 1 for approximately $1.4 billion. The transaction followed the Freight spin-off and advanced the company’s strategy to simplify its business portfolio. These moves reflect FedEx’s efforts to streamline operations, manage its balance sheet, and direct capital toward long-term priorities.Higher 2026 Guidance Sets a Stronger Financial OutlookFedEx raised its 2026 revenue growth forecast to approximately 12%, up from its previous estimate of 11%. The company also increased its adjusted diluted earnings per share guidance to 18.00-18.60, compared with 16.90-18.10 previously. These revisions reflect stronger operating results and continued savings from network optimization and business transformation initiatives.FedEx projected GAAP diluted earnings per share of 35.30-35.90 for continuing operations. However, the previous GAAP forecast excluded certain Freight investment valuation effects and debt-extinguishment gains, limiting direct comparisons between the ranges. The company also lowered its expected effective tax rate to approximately 22.5% from 23%.FedEx maintained its 2026 capital spending forecast at $3.9 billion and pension contribution estimate at $475 million. Planned investments will support network efficiency, facility modernization, fleet upgrades, and automation. Despite the stronger outlook, the stock’s after-hours decline highlighted the contrast between improving adjusted performance and weaker reported earnings. The post FedEx (FDX) Stock: Revenue Growth, $2 Billion Buybacks and Higher 2026 Guidance appeared first on Blockonomi.