FedEx

FDX Q3 2026 Earnings

Reported Mar 19, 2026 at 4:10 PM ET · SEC Source

Q3 26 EPS

$5.25

Q3 26 Revenue

$24.00B

BEAT +2.20%

Est. $23.48B

vs S&P Since Q3 26

+1.8%

BEATING MARKET

FDX +13.0% vs S&P +11.1%

Market Reaction

Did FDX Beat Earnings? Q3 2026 Results

FedEx delivered a blowout fiscal third quarter for 2026, with adjusted diluted EPS of $5.25 clearing the $4.13 Wall Street consensus by nearly 27% and revenue of $24.00 billion rising 8.3% year over year while edging past estimates by 2.20%. The prim… Read more FedEx delivered a blowout fiscal third quarter for 2026, with adjusted diluted EPS of $5.25 clearing the $4.13 Wall Street consensus by nearly 27% and revenue of $24.00 billion rising 8.3% year over year while edging past estimates by 2.20%. The primary engine was the Federal Express segment, where disciplined yield management and transformation cost savings drove a 10% revenue gain to $21.15 billion, with U.S. Domestic package volume up 5% and International Priority revenue surging 13% on robust yields. The FedEx Freight segment told a sharply contrasting story, with revenue slipping 5% to $1.99 billion and operating income nearly wiped out by $126.00 million in separation costs tied to the planned June 1, 2026 spin-off, a transaction that has drawn considerable skepticism from some investors. Buoyed by operational momentum, FedEx raised its full-year adjusted EPS guidance to $16.05–$16.85 and lifted its revenue growth outlook to 6.0%–6.5%, while trimming capital spending to no more than $4.10 billion.

Key Takeaways

  • Strength in U.S. domestic and International Priority package yields
  • Continued cost savings from transformation initiatives including DRIVE and Network 2.0
  • Increased U.S. domestic package volume with 5% higher average daily volume
  • Tax benefit of $99 million from recognition of foreign tax loss carryforwards
  • Composite package yield improved 6% year-over-year
  • International Priority package yield improved 11% to $66.16 per package

FDX Forward Guidance & Outlook

FedEx raised its fiscal 2026 outlook: revenue growth of 6.0%–6.5% YoY (up from 5%–6%); adjusted diluted EPS of $16.05–$16.85 before MTM retirement plan adjustments (up from $14.80–$16.00), and $19.30–$20.10 after also excluding spin-off, optimization, fiscal year change, and regulatory costs (up from $17.80–$19.00); permanent transformation cost reductions of more than $1 billion (previously $1 billion); effective tax rate of approximately 24% (down from ~25%); pension contributions of $275 million; and capital spending of no more than $4.1 billion (down from $4.5 billion). Forecasts assume current economic outlook and fuel prices with no additional adverse economic, geopolitical, or trade developments.

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FDX YoY Financials

Q3 2026 vs Q3 2025, source: SEC Filings

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FDX Revenue by Segment

With YoY comparisons, source: SEC Filings

Q3 25 Q3 26

“Team FedEx delivered another quarter of strong financial results and excellent service for our customers, powered by disciplined operational execution, the resilience of our global network, and the accelerating impact of our advanced digital solutions.”

— Raj Subramaniam, Q3 2026 Earnings Press Release