FedEx (NYSE:FDX) Issues Quarterly Earnings Results
by Scott Moore · The Cerbat GemFedEx (NYSE:FDX – Get Free Report) posted its quarterly earnings results on Thursday. The shipping service provider reported $5.25 earnings per share for the quarter, topping the consensus estimate of $4.12 by $1.13, FiscalAI reports. FedEx had a net margin of 4.81% and a return on equity of 16.63%. The business had revenue of $24 billion during the quarter, compared to the consensus estimate of $23.44 billion.
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 Trading Up 1.5%
Shares of FDX stock traded up $5.41 during trading hours on Thursday, reaching $355.15. The company’s stock had a trading volume of 4,722,748 shares, compared to its average volume of 1,928,933. The company has a current ratio of 1.27, a quick ratio of 1.23 and a debt-to-equity ratio of 0.72. FedEx has a one year low of $194.29 and a one year high of $392.86. The stock has a market capitalization of $83.50 billion, a P/E ratio of 19.58, a P/E/G ratio of 1.68 and a beta of 1.29. The firm’s fifty day simple moving average is $349.36 and its 200 day simple moving average is $289.48.
FedEx Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Shareholders of record on Monday, March 9th will be issued a $1.45 dividend. The ex-dividend date is Monday, March 9th. This represents a $5.80 annualized dividend and a yield of 1.6%. FedEx’s dividend payout ratio (DPR) is 31.97%.
Institutional Trading of FedEx
A number of institutional investors and hedge funds have recently added to or reduced their stakes in FDX. Arete Wealth Advisors LLC increased its position in FedEx by 1.7% during the 4th quarter. Arete Wealth Advisors LLC now owns 1,778 shares of the shipping service provider’s stock valued at $514,000 after purchasing an additional 30 shares during the period. Quadrant Capital Group LLC boosted its stake in shares of FedEx by 0.4% during the 4th quarter. Quadrant Capital Group LLC now owns 7,919 shares of the shipping service provider’s stock valued at $2,287,000 after purchasing an additional 35 shares in the last quarter. Berkshire Asset Management LLC PA boosted its stake in shares of FedEx by 2.2% during the 4th quarter. Berkshire Asset Management LLC PA now owns 1,741 shares of the shipping service provider’s stock valued at $503,000 after purchasing an additional 37 shares in the last quarter. Stonebridge Capital Advisors LLC increased its position in shares of FedEx by 4.1% during the second quarter. Stonebridge Capital Advisors LLC now owns 1,163 shares of the shipping service provider’s stock valued at $264,000 after buying an additional 46 shares during the period. Finally, Principal Securities Inc. increased its position in shares of FedEx by 0.6% during the fourth quarter. Principal Securities Inc. now owns 8,191 shares of the shipping service provider’s stock valued at $2,366,000 after buying an additional 47 shares during the period. Hedge funds and other institutional investors own 84.47% of the company’s stock.
Analyst Upgrades and Downgrades
A number of equities research analysts have recently weighed in on the company. The Goldman Sachs Group boosted their target price on FedEx from $364.00 to $369.00 and gave the company a “buy” rating in a research note on Friday, March 13th. Bank of America raised their price target on FedEx from $408.00 to $414.00 and gave the stock a “buy” rating in a research report on Tuesday, February 10th. Deutsche Bank Aktiengesellschaft reiterated a “buy” rating and issued a $479.00 price objective on shares of FedEx in a research report on Friday, February 13th. JPMorgan Chase & Co. increased their price objective on FedEx from $294.00 to $424.00 and gave the company a “neutral” rating in a research note on Tuesday, March 10th. Finally, Evercore raised their target price on shares of FedEx from $364.00 to $380.00 in a report on Tuesday, February 24th. Two equities research analysts have rated the stock with a Strong Buy rating, seventeen have issued a Buy rating, nine have given a Hold rating and three have given a Sell rating to the company. Based on data from MarketBeat, FedEx has a consensus rating of “Moderate Buy” and a consensus target price of $371.19.
Get Our Latest Research Report on FedEx
Key Stories Impacting FedEx
Here are the key news stories impacting FedEx this week:
- Positive Sentiment: FedEx beat expectations on revenue and EPS for fiscal Q3 and raised its 2026 outlook, citing stronger package yields and higher sales—this is the primary driver lifting the stock. Read More.
- Positive Sentiment: The planned spin‑off of FedEx Freight remains on track, which investors view as value‑unlocking (separating freight from parcel growth profile). Read More.
- Positive Sentiment: JPMorgan and other bullish analyst moves (price‑target increases) are supporting sentiment and offer additional upside rationale for investors focused on valuation re‑rating. Read More.
- Neutral Sentiment: FedEx said it will close nine New York parcel centers—management frames this as network optimization; impact on near‑term volumes and costs is mixed and depends on execution. Read More.
- Neutral Sentiment: Analysts were actively revising estimates ahead of earnings and investor attention is focused on specific KPIs (yields, volumes, margin mix); that watchfulness can amplify moves after prints. Read More.
- Negative Sentiment: The NTSB is investigating a close call between a FedEx jet and an Alaska Airlines plane at Newark—safety/regulatory scrutiny could raise short‑term concerns and potential costs. Read More.
- Negative Sentiment: Rising fuel prices and the Iran conflict raise input‑cost and route‑disruption risks for shipping companies; FedEx called out these headwinds even as it raised guidance. Read More.
- Negative Sentiment: Technical/market risks: some outlets flagged a “death cross” signal and elevated volatility tied to macro uncertainty, which can pressure the stock despite fundamental beats. Read More.
About FedEx
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.