FedEx Q3 Revenue Jumps 8% to $24B, Raises FY26 EPS to $19.30–20.10
FedEx reported Q3 revenue up 8% to $24 billion, beating estimates by $520 million, with adjusted EPS of $5.25, up 16%. It lifted FY26 revenue growth guidance to 6.25% mid-range and raised adjusted EPS outlook to $19.30–20.10, while targeting over $1 billion in cost savings and cutting capex to $4.1 billion.
1. Q3 Earnings and Revenue
FedEx delivered fiscal third-quarter revenue of $24 billion, an 8% year-over-year increase that beat consensus by $520 million. Adjusted EPS rose 16% to $5.25, driven by yield and volume strength across package services and benefits from ongoing restructuring initiatives.
2. Upgraded Fiscal 2026 Guidance
Based on these results, FedEx raised its full-year 2026 revenue growth forecast to 6.25% at the mid-range (up from 5.5%) and increased its adjusted EPS outlook to $19.30–20.10 (up from $17.80–19). This represents a substantial upward revision delivered just one month after its Investor Day projections.
3. Cost Reduction and Capital Spending
The company now expects more than $1 billion in permanent cost reductions for FY26 from structural savings and network integration, and plans to close 475 parcel terminals by end-2027. Capital expenditure is projected at $4.1 billion, down from $4.5 billion forecast in December.
4. Segment Performance and Competitive Dynamics
FedEx’s domestic parcel segment saw 10% revenue growth to $21.2 billion and 21% operating income growth to $1.6 billion. In contrast, the soon-to-be-spun-off Freight unit reported a 5% revenue decline to $2 billion and a 97% plunge in income, as FedEx capitalizes on market share gains from competitors scaling back operations.