FedEx Raises Full Year Outlook After Beating Earnings Estimates

FedEx raised its full year financial forecast after reporting quarterly earnings and revenue above Wall Street expectations in its results released Wednesday, October 28, 2026. The delivery company reported stronger adjusted earnings for the period ended September 30, while introducing results under a newly aligned fiscal year.

According to analyst estimates compiled by LSEG, FedEx recorded adjusted earnings of $3.74 per share, exceeding the expected $3.36. Revenue reached $22.86 billion, surpassing the $22.42 billion analysts had forecast.

Despite beating both estimates, FedEx shares edged lower in extended trading following the announcement. The company also reported net income of $290 million, or $1.21 per share, compared with $650 million, or $2.73 per share, in the same period a year earlier.

FedEx's adjusted earnings excluded several items, including losses related to short-term investments, gains from debt extinguishment and certain restructuring costs. After these adjustments, earnings per share totaled $3.74, according to the company's financial report.

The company raised its full year adjusted earnings forecast to a range of $18 to $18.60 per share, up from its previous projection of $16.90 to $18.10. FedEx also increased its revenue growth outlook for 2026 to approximately 12% year over year, compared with its earlier estimate of 11%.

Chief Executive Officer Raj Subramaniam attributed the improved outlook to operating performance, cash flow and efforts to optimize the company's network. In a statement, he said:

"As our strong operating results and adjusted free cash flow demonstrate, FedEx is winning across high-value market segments while we optimize our network, driving an increase to our full-year outlook," said Raj Subramaniam, CEO of FedEx.

FedEx also reported higher operating income in its U.S. express segment during the quarter. The company said the increase was primarily driven by improved package yields and higher shipment volumes.

The results mark the first earnings report under FedEx's revised fiscal calendar. The company shifted its fiscal year-end from May 31 to December 31, changing the reporting schedule used for its financial results.

The report follows the separation of FedEx Freight into an independent publicly traded company. The move represents another structural change as FedEx adjusts its operations and financial reporting.

FedEx also announced a leadership change earlier in the week, naming former AutoZone executive Jamere Jackson as its new chief financial officer, effective November 30, 2026. Jackson will replace Claude Russ, who has served as interim CFO since June 1, after John Dietrich announced in April that he would step down from the role.