FedEx beat estimates on earnings and revenue last quarter amid its cost reduction plan, sending shares up 5.5% in after-hours trading.
Earnings per share were US$3.83, up from $3.60 one year ago and above LSEG estimates of $3.59. Revenue was $22.24 billion, rising from $21.58 billion and beating estimates of $21.66 billion.
“Our earnings growth underscores the success of our strategic initiatives, as we are flexing our network and reducing our cost-to-serve, while further enhancing our value proposition and customer experience,” said FedEx CEO Raj Subramaniam.
“Our strategic initiatives, paired with our unique operational data platform from moving 17 million packages through our network daily, position us well to serve our customers in any environment and to create long-term value for our stockholders.”
Operating income was $1.30 billion, compared with $1.21 billion one year ago. Net income increased from $890 million to $910 million.
Its Federal Express segment reported $19.12 billion in revenue, up 4% year-over-year. The company credited this to higher United States package yields and cost reductions.
Revenue for its FedEx Freight segment dropped by 3% to $2.26 billion. FedEx Freight will be separated into a new publicly traded company by June 2026, FedEx said.
FedEx first said in June that it would seek to reduce costs by $1 billion across its 2026 fiscal year.
The company’s guidance for its 2026 fiscal year projects 4-6% growth in revenue, with adjusted earnings per share of $17.20-19.00..
FedEx’s (NYSE: FDX) share price closed at $226.50, but surged to a high of $243.50 in after-hours trading before settling at $238.90. Its market capitalisation is $53.44 billion.
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