FedEx beat earnings estimates last quarter as its cost-cutting efforts continue and has lifted its full-year outlook, sending shares up 2.1% in after-hours trading.
Adjusted earnings per share were US$4.82, above both Zacks estimates of $4.07 and last year’s earnings of $3.03. Revenue was $23.5 billion, up from $22.0 billion year-over-year.
“FedEx delivered an outstanding second quarter as we successfully executed our growth strategy and advanced our network transformation, while navigating a highly challenging external environment,” said FedEx CEO Raj Subramaniam.
“The progress we are making on our strategic initiatives is tangible, and we are committed to creating significant value creation in the years ahead,” said FedEx CFO John Dietrich.
Operating income was $1.38 billion, rising from $1.05 billion. Net income grew to $960 million, from $740 million.
FedEx’s business optimisation costs impacted adjusted earnings per share by $0.10. It expects cost reductions of $1 billion across its fiscal 2026.
For the fiscal year, the company projects 5-6% growth in revenue, up from its previous forecast of 4-6%. It also predicts earnings per share of $14.80-16.00 before mark-to-market retirement plans adjustments, growing from $14.20-16.00.
FedEx will also spin off its FedEx Freight business into a new publicly traded company in June 2026. The segment saw separation-related costs of $152 million last quarter.
Parcel deliveries will likely be 5% higher than 2024 during this year’s peak shopping season in November and December, ShipMatrix estimated in September.
FedEx’s (NYSE: FDX) share price had climbed to $293.00 in extended trading by 9:50 am AEDT, after a close at $287.12. Its market capitalisation is $67.75 billion.



