FedEx (NYSE:FDX) Announces Earnings Results, Beats Expectations By $1.13 EPS

by · The Markets Daily

FedEx (NYSE:FDX – Get Free Report) released its earnings results on Thursday. The shipping service provider reported $5.25 EPS for the quarter, topping the consensus estimate of $4.12 by $1.13, FiscalAI reports. The firm had revenue of $24 billion during the quarter, compared to analysts’ expectations of $23.44 billion. FedEx had a net margin of 4.88% and a return on equity of 17.03%. FedEx’s revenue for the quarter was up 8.3% on a year-over-year basis. During the same period in the previous year, the company earned $4.51 EPS.

Here are the key takeaways from FedEx’s conference call:

  • Strong Q3 and upgraded guidance: Consolidated revenue rose 8% YoY and adjusted EPS grew 16%, prompting FedEx to raise FY2026 adjusted EPS guidance to $19.30–$20.10 and lift consolidated revenue growth to 6%–6.5%.
  • Network 2.0 momentum: About 35% of eligible volume now flows through ~400 Network 2.0 facilities (targeting ~65% by next peak), with an expected $2 billion in cumulative savings by end of 2027 supporting improved peak profitability.
  • FedEx Freight pressure and separation costs: Freight faced weak LTL demand (shipments down ~6%) with adjusted operating income down $127M, including roughly $60M of separation-related costs as the business prepares for a targeted June 1, 2026 spin-off.
  • MD-11 grounding headwind: Grounding of the MD-11 fleet imposed a ~$120M adjusted operating income hit in Q3 and is expected to add up to ~$55M of headwind in Q4, despite operational mitigation efforts.
  • Capital discipline and cash-flow focus: FedEx cut FY26 CapEx to no more than $4.1B (aircraft CapEx ≤ $1B), which—coupled with stronger operating results—supports upside to adjusted free cash flow and the company’s $6B adjusted FCF target for 2029 (ex-Freight).

FedEx Price Performance

FDX stock opened at $358.44 on Friday. The company has a market cap of $84.28 billion, a PE ratio of 19.08, a price-to-earnings-growth ratio of 1.69 and a beta of 1.29. The company has a current ratio of 1.27, a quick ratio of 1.23 and a debt-to-equity ratio of 0.72. The stock has a 50-day moving average price of $351.21 and a two-hundred day moving average price of $290.82. FedEx has a 12-month low of $194.29 and a 12-month high of $392.86.

FedEx Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Monday, March 9th will be given a dividend of $1.45 per share. This represents a $5.80 dividend on an annualized basis and a yield of 1.6%. The ex-dividend date of this dividend is Monday, March 9th. FedEx’s payout ratio is 30.87%.

Analyst Ratings Changes

Several equities research analysts have recently issued reports on FDX shares. Stephens raised their price objective on FedEx from $405.00 to $435.00 and gave the stock an “overweight” rating in a report on Friday. Bank of America upped their target price on FedEx from $431.00 to $440.00 and gave the company a “buy” rating in a research note on Friday. Sanford C. Bernstein reissued an “outperform” rating and issued a $457.00 price target on shares of FedEx in a research note on Friday, March 6th. Morgan Stanley lifted their price target on FedEx from $220.00 to $230.00 and gave the company an “underweight” rating in a report on Friday. Finally, The Goldman Sachs Group upped their price objective on shares of FedEx from $364.00 to $369.00 and gave the company a “buy” rating in a research note on Friday, March 13th. One research analyst has rated the stock with a Strong Buy rating, seventeen have given a Buy rating, ten have given a Hold rating and one has issued a Sell rating to the company’s stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and an average price target of $393.85.

Get Our Latest Analysis on FDX

Hedge Funds Weigh In On FedEx

Hedge funds and other institutional investors have recently modified their holdings of the company. Sivia Capital Partners LLC purchased a new stake in FedEx during the second quarter worth approximately $586,000. Brighton Jones LLC raised its stake in shares of FedEx by 12.8% in the 4th quarter. Brighton Jones LLC now owns 1,825 shares of the shipping service provider’s stock valued at $514,000 after acquiring an additional 207 shares during the period. Mill Capital Management LLC purchased a new position in shares of FedEx in the 4th quarter valued at $202,000. Opal Capital LLC acquired a new position in shares of FedEx during the 4th quarter valued at $200,000. Finally, Asset One Wealth Management LLC acquired a new position in shares of FedEx during the 4th quarter valued at $194,000. 84.47% of the stock is owned by institutional investors and hedge funds.

More FedEx News

Here are the key news stories impacting FedEx this week:

  • Positive Sentiment: Q3 beat and guidance raise — FedEx posted a double beat (EPS and revenue) and lifted full‑year profit guidance, which is the primary driver behind the stock rally. Article Link
  • Positive Sentiment: Analyst re‑ratings and price‑target lifts — Multiple firms (UBS, Wells Fargo, BofA, Susquehanna, Stephens, TD Cowen, Truist, Stifel, BMO, etc.) raised targets or upgraded ratings after the results, supporting further upside sentiment. Article Link
  • Neutral Sentiment: Management says demand is holding — FedEx flagged that early‑March volumes matched expectations and that its fuel surcharge is moderating higher fuel costs, but management assumes no additional geopolitical disruptions. That reduces immediate downside but leaves exposure to future shocks. Article Link
  • Neutral Sentiment: Market context is mixed — broader markets are pressured by oil/geo risks and macro data, so FedEx’s outperformance is occurring in a risk‑off environment that could limit follow‑through. Article Link
  • Negative Sentiment: Cost and segment risks persist — fuel costs are materially higher (a key margin headwind) and the Freight business remains weak; both could pressure results if trends worsen. Article Link
  • Negative Sentiment: Some caution in the market and mixed guidance reaction — a few headlines note the company gave a relatively cautious near‑term forecast that caused intraday profit‑taking, and one major house (Morgan Stanley) still expresses an underweight stance with a much lower target. Article Link
  • Negative Sentiment: Operational/PR risk — the NTSB is probing a close runway call involving a FedEx jet, a reputational/operational overhang to monitor. Article Link

About FedEx

(Get Free Report)

FedEx Corporation (NYSE: FDX) is a global logistics and courier company headquartered in Memphis, Tennessee. Founded by Frederick W. Smith in 1971 and beginning operations in the early 1970s, the company pioneered overnight express shipping and has since expanded into a diversified portfolio of transportation, e-commerce and supply-chain services. FedEx operates an integrated air-and-ground network that moves parcels, freight and documents for businesses and consumers worldwide.

FedEx’s core operating segments include express parcel delivery via its FedEx Express division, domestic and residential parcel delivery through FedEx Ground, less-than-truckload (LTL) freight services, and logistics and supply-chain management solutions.

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