FedEx: Revenue Up, Forecast Worries
FedEx reported an 8% revenue increase and raised its FY26 EPS outlook, yet shares trimmed gains after a 'weak quarterly forecast' and concerns about industrial demand and war-driven cost headwinds. Management signaled resilience in volumes but warned that logistics and energy cost pressure could persist. (reuters.com)
FedEx reported consolidated revenue of $24.0 billion for the quarter ended Feb. 28 and adjusted diluted EPS of $5.25 (GAAP diluted EPS $4.41), with net income of $1.06 billion. (investors.fedex.com) Adjusted operating income for the quarter was about $1.62 billion and adjusted operating margin expanded to 6.7%, driven by higher U.S. domestic and International Priority package yields. (investors.fedex.com) Management lifted full-year fiscal 2026 adjusted EPS guidance to a range of $19.30–$20.10 and now expects revenue growth of roughly 6.0%–6.5% for the year. (cnbc.com) Shares jumped in extended trading—roughly 9%—after the results, though intraday gains were later pared as the company’s quarterly outlook and geopolitical cost risks tempered early enthusiasm. (cnbc.com) (msn.com) The planned spin-off of FedEx Freight remains on track for June 1, 2026, with FedEx Freight having issued $3.7 billion of senior notes on Feb. 5, 2026; FedEx said Freight’s operating results fell this quarter due to spin-off-related costs, lower shipments and higher wage rates. (investors.fedex.com) Executives flagged “modest” headwinds from the Iran war and higher oil-driven airfreight costs, noting fuel-surcharge mechanisms have absorbed most pressure but that further fuel spikes could depress demand; the company also cited cost impacts from recent MD‑11 groundings. (cnbc.com) (investors.fedex.com) Analysts highlighted the split performance: stronger yields and U.S. domestic volume in the Express segment offset Freight weakness, a dynamic cited by J.P. Morgan as supporting FedEx’s margin beat despite softer industrial shipments. (srnnews.com)
