FedEx lifts 2026 earnings outlook after seeing volume growth in the quarter
Overview
Parcel delivery giant's Q3 revenue rose yr/yr to $22.9 bln
Adjusted EPS for Q3 increased yr/yr to $3.74
Company completed $2 bln in share repurchases during the quarter
Outlook
FedEx raises 2026 revenue growth outlook to ~12% from ~11%
Company now sees 2026 adjusted diluted EPS at $18.00 to $18.60, up from $16.90 to $18.10
FedEx expects 2026 effective tax rate of ~22.5%, down from ~23%
Result Drivers
HIGHER PACKAGE YIELDS - Co said increased package base yields contributed to improved operating results
VOLUME GROWTH - Co said higher package volumes supported revenue and operating income
COST REDUCTIONS - Co attributed improved results to ongoing structural cost reductions from business optimization initiatives
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q1 Revenue | $22.90 bln | ||
Q1 Adjusted EPS | $3.74 | ||
Q1 EPS | $1.21 | ||
Q1 Net Income | $290 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 21 "strong buy" or "buy", 7 "hold" and 2 "sell" or "strong sell"
The average consensus recommendation for the courier, postal, air freight & land-based logistics peer group is "buy"
Wall Street's median 12-month price target for FedEx Corp is $351.00, about 14.3% above its October 27 closing price of $307.10
The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 16 three months ago
Reuters Recommended Reads
Oct 28 - FedEx forecasts annual profit above estimates, posts higher quarterly earnings on better pricing, volumes
Oct 27 - United Parcel Service expects fatter holiday profits on slightly slimmer volume
Oct 28 - Serve launches robot deliveries in Australia in first international push
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)