FedEx beats expectations with record earnings and raises full-year forecast
FedEx has reported stronger-than-expected financial results for its third fiscal quarter, sending its shares up by 8% in after-hours trading. The company also raised its full-year earnings forecast, surpassing analyst predictions and signalling confidence in its ongoing restructuring efforts.
The delivery giant posted adjusted earnings of $5.25 per share, well above the $4.14 estimate from analysts surveyed by LSEG. Revenue reached $24 billion, beating expectations of $23.4 billion, thanks to higher pricing, increased U.S. package volumes, and cost-cutting measures. FedEx now expects annual earnings of $19.30 to $20.10 per share, up from its earlier forecast of $17.80 to $19.00.
The company's performance comes amid a broader restructuring plan, including billions in savings and the upcoming spin-off of its trucking division on June 1. Additionally, FedEx anticipates its 28 MD-11 aircraft will return to service by late May, following a temporary grounding by the U.S. Federal Aviation Administration. However, the Middle East conflict has pushed up air cargo rates, impacting international export volumes. FedEx's market position has also strengthened this year. On March 19, 2026, it overtook UPS in market capitalisation for the first time. Since then, its shares have climbed 25% year-to-date, boosting its market value to around $82 billion in mid-March. The latest earnings upgrade added another 10% to its valuation, while UPS has seen a 2% decline, partly due to its own cost-cutting and reduced Amazon business.
The latest results and raised forecasts reflect FedEx's progress in its multi-year restructuring. With higher earnings, revenue growth now projected at 6.0–6.5% for the fiscal year, and a stronger market position, the company appears set for further gains. The return of its grounded aircraft and continued cost controls will likely play a key role in its performance moving forward.
