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FedEx 8-K Report, Financial Results (Mar 19, 2026)

Reports
Earnings & Results·Exhibits & Filings
Filing Date
Filed March 19, 2026
Period End
March 19, 2026
Security
FDX
In the record · 2016–202610-K1210-Q328-K159

FDX filed 12 annual reports (10-K), 32 quarterly reports (10-Q) and 159 current reports (8-K) between 2016 and 2026.

  1. Material agreement8-K · Feb ’17Feb ’17
  2. Material agreement8-K · Mar ’19Mar ’19
  3. Leadership change8-K · Jul ’21Jul ’21
  4. Leadership change8-K · May ’25May ’25

01—Abstract

Summary

Summary of the 8-K filed March 19, 2026. Cited figures are marked; the original filing is the authoritative source.

FedEx reported fiscal Q3 2026 (quarter ended February 28, 2026) results that beat on profitability and raised its full-year fiscal 2026 outlook.

Revenue rose 8% year over year to $24.0 billiona, and GAAP operating income grew 4% to $1.35 billion (5.6% margin), while adjusted operating income rose to $1.62 billion (6.7% margin). GAAP diluted EPS was $4.41 versus $3.76 a year earlier, and adjusted EPS was $5.25 versus $4.51. GAAP net income includes a $99 million ($0.41 per share) tax benefit from recognizing certain foreign tax loss carryforwards.

Federal Express segment operating income rose 21% to $1.57 billionb, driven by higher U.S. domestic and International Priority yields, transformation savings, and higher U.S. domestic volume, partly offset by wage rates, trade policy effects, purchased transportation costs, and MD-11 groundings. FedEx Freight operating income fell sharply to $8 million from $261 million on spin-off costs, lower shipments, and wage inflation. The company raised its fiscal 2026 outlook.

Revenue growth is now expected at 6.0% to 6.5% (previously 5% to 6%), and adjusted EPS before pension mark-to-market (MTM) adjustments is $16.05 to $16.85c (previously $14.80 to $16.00). Excluding spin-off, business optimization, fiscal year change, and an international regulatory matter, EPS guidance is $19.30 to $20.10 (previously $17.80 to $19.00). Transformation-related permanent savings now exceed $1 billion, capital spending was cut to no more than $4.1 billion from $4.5 billion, and the ETR outlook improved to about 24%.

Management cannot forecast MTM pension adjustments, so no GAAP EPS or ETR guidance is provided, and those adjustments could be material. The key structural event is the planned spin-off of FedEx Freight on June 1, 2026. FedEx Freight issued $3.7 billiond of senior notes on February 5, 2026, with proceeds to be distributed to FedEx as part of the consideration for the asset contribution, and it will hold an Investor Day on April 8, 2026.

Separately, FedEx, with Advent International, A&R Investments and PPF Group, agreed to a conditional all-cash offer to take InPost private at €15.60 per share, expected to close in the second half of 2026 and be accretive to FedEx earnings in the first year. The fiscal year-end change from May 31 to December 31 also takes effect June 1, 2026.

Nine-month operating cash flow was $5.66 billion, up from $4.52 billion, and capital expenditures were $2.34 billion. Share repurchases were $796 million, versus $2.52 billion in the prior-year period.

02—Key points

Key Highlights

  1. Q3 FY2026 revenue rose 8% to $24.0 billion, with Federal Express segment revenue up 10% to $21.2 billion.
  2. GAAP diluted EPS was $4.41 (up 17%) and adjusted EPS was $5.25 (up from $4.51), with GAAP net income including a $0.41 per-share foreign tax benefit.
  3. Federal Express operating margin expanded to 7.4% (adjusted 7.9%), supported by U.S. domestic yield gains of 5%, International Priority yield gains of 11%, and U.S. domestic volume growth of 5%.
  4. FedEx Freight operating income collapsed to $8 million from $261 million, with a $126 million spin-off cost and lower shipments.
  5. Fiscal 2026 adjusted EPS guidance was raised to $16.05–$16.85 before MTM pension adjustments (or $19.30–$20.10 excluding one-time items), and capex guidance was cut to no more than $4.1 billion.
  6. The FedEx Freight spin-off remains on track for June 1, 2026, and the InPost take-private offer at €15.60 per share is expected to close in the second half of 2026.
  7. Cash from operations rose to $5.66 billion for the nine months, and total debt climbed to about $25.3 billion following the $3.7 billion FedEx Freight notes issuance.

03—Questions

Frequently Asked Questions

  1. Why did FedEx raise its fiscal 2026 earnings outlook?

    The raised outlook reflects stronger U.S. domestic and International Priority package yields, continued cost savings from transformation initiatives and Network 2.0, and higher U.S. domestic volume. The company now expects revenue growth of 6.0%–6.5% and adjusted EPS of $19.30–$20.10 after excluding one-time items, up from $17.80–$19.00.

  2. What is the impact of the FedEx Freight spin-off on investors?

    FedEx Freight will become a separate publicly traded company on June 1, 2026, through a tax-free spin-off to FedEx stockholders. FedEx expects about $700 million in spin-off costs in fiscal 2026, which is a major reason GAAP EPS trails adjusted EPS. FedEx Freight's own operating income has weakened, so investors will watch its standalone profitability at the April 8, 2026 Investor Day.

  3. Why does FedEx not provide GAAP EPS guidance?

    FedEx cannot forecast mark-to-market pension accounting adjustments because they depend heavily on interest rates and financial market movements. As a result, it relies on an SEC exemption and gives only non-GAAP EPS and ETR guidance. It also warns that these adjustments could materially affect fiscal 2026 consolidated results and the effective tax rate.

  4. What is FedEx's InPost offer and how could it affect the company?

    FedEx, together with Advent International, A&R Investments and PPF Group, reached a conditional agreement to take InPost private at €15.60 per share in cash. The deal is subject to regulatory approvals and closing conditions, is expected to close in the second half of 2026, and is expected to be accretive to FedEx earnings in the first year.

  5. How is the fiscal year change affecting reporting?

    FedEx's fiscal year end moves from May 31 to December 31, effective June 1, 2026. The company incurred $8 million of fiscal year change costs in the quarter, and fiscal 2026 costs are estimated at $30 million. Investors should expect a transition period, which will affect comparability of reported periods around the change.

04—Continue

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