FedEx (NYSE:FDX) Posts Earnings Results

FedEx (NYSE:FDX) posted its earnings results on Thursday. The shipping service provider reported $5.25 earnings per share for the quarter, topping analysts’ consensus estimates of $4.12 by $1.13, FiscalAI reports. The firm had revenue of $24 billion for the quarter, compared to the consensus estimate of $23.44 billion. FedEx had a return on equity of 16.63% and a net margin of 4.81%.

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 Stock Performance

Shares of FedEx stock traded up $5.41 during trading on Thursday, hitting $355.15. 4,722,748 shares of the company’s stock traded hands, compared to its average volume of 1,928,933. FedEx has a 1 year low of $194.29 and a 1 year high of $392.86. The business has a 50-day simple moving average of $349.36 and a 200-day simple moving average of $289.48. The stock has a market capitalization of $83.50 billion, a P/E ratio of 19.58, a PEG ratio of 1.68 and a beta of 1.29. The company has a debt-to-equity ratio of 0.72, a current ratio of 1.27 and a quick ratio of 1.23.

FedEx Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, April 1st. Stockholders of record on Monday, March 9th will be issued a dividend of $1.45 per share. This represents a $5.80 dividend on an annualized basis and a dividend yield of 1.6%. The ex-dividend date of this dividend is Monday, March 9th. FedEx’s dividend payout ratio is presently 31.97%.

Hedge Funds Weigh In On FedEx

Several hedge funds and other institutional investors have recently bought and sold shares of FDX. EFG International AG bought a new stake in shares of FedEx in the fourth quarter worth approximately $27,000. Wilkerson Advisory Group LLC bought a new position in FedEx during the fourth quarter valued at approximately $29,000. Intesa Sanpaolo Wealth Management bought a new position in FedEx during the fourth quarter valued at approximately $33,000. Wealth Watch Advisors INC purchased a new stake in FedEx in the third quarter worth approximately $28,000. Finally, Uniplan Investment Counsel Inc. bought a new stake in FedEx in the 4th quarter worth approximately $36,000. Institutional investors own 84.47% of the company’s stock.

More FedEx News

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.

Analysts Set New Price Targets

FDX has been the subject of a number of research reports. HSBC downgraded FedEx from a “hold” rating to a “reduce” rating and set a $335.00 price objective for the company. in a report on Wednesday, February 25th. Susquehanna lowered their target price on shares of FedEx from $345.00 to $340.00 in a report on Tuesday, December 23rd. BNP Paribas Exane set a $280.00 price objective on FedEx and gave the company a “neutral” rating in a research note on Tuesday, January 13th. TD Cowen boosted their target price on FedEx from $313.00 to $383.00 and gave the stock a “buy” rating in a report on Friday, February 13th. Finally, The Goldman Sachs Group raised their price target on FedEx from $364.00 to $369.00 and gave the company a “buy” rating in a report on Friday, March 13th. Two analysts have rated the stock with a Strong Buy rating, seventeen have given a Buy rating, nine have given a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat.com, FedEx has a consensus rating of “Moderate Buy” and a consensus target price of $371.19.

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.