FedEx Q3 EPS $5.25 Tops Estimates, Lifts FY26 Forecast to $19.30–20.10
FedEx reported fiscal Q3 adjusted EPS of $5.25, beating $4.11 estimates, and revenue of $24.0B versus $23.48B forecasts, with operating income up 7% to $1.62B. It raised its FY26 adjusted EPS outlook to $19.30–20.10 (from $17.80–19.00) and saw options volume spike to 20× average.
1. Strong Q3 Financial Performance
FedEx delivered adjusted earnings per share of $5.25 for the fiscal third quarter, exceeding the $4.11 consensus, while revenue reached $24.0 billion versus $23.48 billion expected. Adjusted operating income climbed 7% year over year to $1.62 billion, benefiting from streamlined network operations and one-time tax benefits.
2. Upgraded FY26 Guidance
The company raised its full-year 2026 adjusted EPS forecast to a range of $19.30–20.10 from $17.80–19.00, above the $18.71 street estimate. Revenue growth guidance was lifted to 6.0%–6.5% from a prior 5%–6%, with implied fourth-quarter EPS of about $5.79 at midpoint.
3. Share Price and Analyst Target Moves
Shares rallied roughly 2% intraday following the results and outlook boost, trading near their late-February record high. At least 11 analysts hiked price targets, including a notable increase by Bernstein from $457 to $466.
4. Elevated Options Activity
Options volume surged to roughly 20 times the intraday average, with about 17,000 calls and 11,000 puts traded. The equity’s 50-day put/call ratio reached 1.41, ranking in the 96th percentile of its annual range.